China EU relations

 

The EU remained China's second-largest trading partner in the first eight months of the year, with bilateral trade posting growth of 1.1 percent during the period, slightly up from a reading of 0.4 percent in the January-July period, data from Chinese customs showed on Tuesday.

The data reflected the continued improvement of trade, after January-July data reversed a downward trend, underscoring the resilience and complementarity of the two economies, despite some recent protectionist measures implemented by the EU such as the bloc's hefty provisional tariffs on Chinese electric vehicles (EVs).

Total bilateral trade reached 3.72 trillion yuan ($522.61 billion) in yuan-denominated terms between January and August, up 1.1 percent on a yearly basis, according to the General Administration of Customs. 

The data confirmed the improvement from the first half, during which bilateral trade declined by 0.7 percent year-on-year.

China's exports to the EU increased by 2.9 percent year-on-year to 2.44 trillion yuan while imports from the bloc decreased by 2.1 percent on a yearly basis to 1.28 trillion yuan, the GAC data showed. Trade with the EU accounted for 13 percent of China's total trade, unchanged from the January-July period.

The trade data came as the EU has increasingly resorted to protectionist measures in face of fierce external competition. The latest improving data showed that the economies of China and the EU are highly complementary, and that China's mega-market and the EU's single market can offer huge opportunities for each other's economic development, analysts noted.

Instead of resorting to protectionism, the EU should remain open and confident to create a fair competition environment to allow trade to flourish, they said. 

In August, trade reached 500.51 billion yuan,down from July's 503.3 billion yuan.

In the month, the bloc unveiled a draft decision to impose final countervailing duties of up to 36.3 percent on Chinese EVs.

Overall, China's foreign trade grew 6 percent during the first eight months. Auto exports value grew by 22.2 percent on a yearly basis to 540.84 billion yuan while imports of autos slid by 6.6 percent to 193.61 billion yuan.