Europe has overtaken the United States as China’s No. 1 trade partner. China’s trade with the European Union reached US$306 billion through July of this year, compared with US$243 billion in trade with the US. European companies such as Volkswagen, which will sell some 2 million cars in China this year, have scored great success in serving China’s domestic market. China, in turn, has been busy buying up European companies and seaports. A new report by the Council on Foreign Relations said China it has even begun to shift part of its estimated US$2.7 trillion foreign currency reserves out of dollars and into euros. Europe’s overall trade remains balanced. EU exports to China are soaring at an annual rate of 49%. Can Europe translate its economic leverage into political influence? Newsweek suggests this is unlikely. Europe has 27 national capitals and has no single foreign policy.
You must log in to post a comment.
Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)
Copyright © 2018 SinoMedia Group Limited All rights reserved