Sino signs of the times
One of the oldest civilisations in the world, China, has recently been pulling off remarkable worldwide economic and political success. Strong economic growth, the continuing impact of globalisation, the migration of manufacturing to low-cost areas and...
One of the oldest civilisations in the world, China, has recently been pulling off remarkable worldwide economic and political success. Strong economic growth, the continuing impact of globalisation, the migration of manufacturing to low-cost areas and Chinese membership of the World Trade Organisation have all led to an accelerated economic pace of development in the country.
This has inevitably led to a change in the pattern of EU-China trade balance. While the developments in the EU's external trade with the US, EFTA countries, Russia, Japan, South Korea, Canada and Australia over the period 1999 to 2006 reflect the wider changes in the world economy, the most striking outcome is that China has replaced the US as the main source of EU imports. This change is mainly reflected in textile and clothing in 2006, after a sustained surge in imports since 1999.
EU exports to China have also shown sizeable increase on the back of the heavy investment in China's industrialised capacity and more general economic developments.
Taking a look at recent Eurostat statistics, trade with China has been growing extremely rapidly between 1999 and 2006. Imports from China grew at an annual average of 20.5 per cent. Export growth averaged 18.3 per cent over the same period and stood at 22.8 per cent in 2006. The key areas for Chinese imports are consumer electronic equipment, computers, clothing, footwear, toys and games. Products, such as base metal, have also improved strongly but the speed and sustained nature of Chinese expansion has produced shortages for basic products, causing China to import scrap metal as well as steel products.
EU Trade Commissioner Peter Mandelson has been playing quite an active role in trade relations between China and the EU. Recently he stated that "China remains a complex and sometimes difficult place to do business. In that kind of business environment, reliable, confidence-building, mutually-beneficial partnerships matter more than ever - not just for EU companies that want to come to China but also for Chinese companies ready to take the step into the huge European market."
Recent events such as China's inability to stem a tidal wave of counterfeit products flooding European markets and problems with the safety of consumer goods have shaken the country's reputation. The EU Taxation and Customs Union Commissioner Laszlo Kovacs has reiterated on various occasions that counterfeiting remains a major hurdle in doing business with China, and that "all stakeholders need to continue to cooperate and take actions at all appropriate levels: business, national customs administrations, police and other enforcement authorities."
China's economic future depends on both China itself and the rest of the world. Maintaining such rapid economic growth is an important step not only for Asian nations but also for the rest of the world.
EU-China relations can only be addressed successfully by freeing them from scepticism and in the process establishing a mutually beneficial cooperation based on trust for better trade tides.
The trade surge has led to better political dialogue between China and the EU. The Union is constantly supporting China's shift to an open economic market based on the rule of law and the appreciation of human rights, and hopefully this relationship will not be dented by recent events such as the run-up to the Beijing Olympics.
• Ms Mladenova is a junior consultant at Impetus Europe Consulting Group Ltd. For more information visit www.impetuseurope.com or contact info@impetuseurope.com
This has inevitably led to a change in the pattern of EU-China trade balance. While the developments in the EU's external trade with the US, EFTA countries, Russia, Japan, South Korea, Canada and Australia over the period 1999 to 2006 reflect the wider changes in the world economy, the most striking outcome is that China has replaced the US as the main source of EU imports. This change is mainly reflected in textile and clothing in 2006, after a sustained surge in imports since 1999.
EU exports to China have also shown sizeable increase on the back of the heavy investment in China's industrialised capacity and more general economic developments.
Taking a look at recent Eurostat statistics, trade with China has been growing extremely rapidly between 1999 and 2006. Imports from China grew at an annual average of 20.5 per cent. Export growth averaged 18.3 per cent over the same period and stood at 22.8 per cent in 2006. The key areas for Chinese imports are consumer electronic equipment, computers, clothing, footwear, toys and games. Products, such as base metal, have also improved strongly but the speed and sustained nature of Chinese expansion has produced shortages for basic products, causing China to import scrap metal as well as steel products.
EU Trade Commissioner Peter Mandelson has been playing quite an active role in trade relations between China and the EU. Recently he stated that "China remains a complex and sometimes difficult place to do business. In that kind of business environment, reliable, confidence-building, mutually-beneficial partnerships matter more than ever - not just for EU companies that want to come to China but also for Chinese companies ready to take the step into the huge European market."
Recent events such as China's inability to stem a tidal wave of counterfeit products flooding European markets and problems with the safety of consumer goods have shaken the country's reputation. The EU Taxation and Customs Union Commissioner Laszlo Kovacs has reiterated on various occasions that counterfeiting remains a major hurdle in doing business with China, and that "all stakeholders need to continue to cooperate and take actions at all appropriate levels: business, national customs administrations, police and other enforcement authorities."
China's economic future depends on both China itself and the rest of the world. Maintaining such rapid economic growth is an important step not only for Asian nations but also for the rest of the world.
EU-China relations can only be addressed successfully by freeing them from scepticism and in the process establishing a mutually beneficial cooperation based on trust for better trade tides.
The trade surge has led to better political dialogue between China and the EU. The Union is constantly supporting China's shift to an open economic market based on the rule of law and the appreciation of human rights, and hopefully this relationship will not be dented by recent events such as the run-up to the Beijing Olympics.
• Ms Mladenova is a junior consultant at Impetus Europe Consulting Group Ltd. For more information visit www.impetuseurope.com or contact info@impetuseurope.com