China topples United States as EU’s biggest trading partner

A steel worker takes a steel sample at blast furnace 8 of German corporation ThyssenKrupp in Duisburg, Germany (EPA-EFE)

China has toppled the United States as the EU’s biggest trading partner, new figures reveal.

Despite the economic impact of Covid-19, EU-China trade grew significantly but imports and exports to the US plummeted, according to data from Eurostat, the EU’s statistics agency.

China is the only major economy to record any economic growth for 2020 - expanding its economy by 2.3%.

This has fuelled demand for European goods and boosted exports from the EU to China by 2.2% to €202.5 billion in 2020, up from €198.2 in 2019.

However transatlantic exports nose-dived by 8.2% to €353billion, from €384.4 in the same period in 2019.

The EU’s statistical office said: “In the year 2020, China was the main partner for the EU. This result was due to an increase of imports (+5.6%) and exports (+2.2%).

“At the same time trade with the United States recorded a significant drop in both imports (-13.2%) and exports (-8.2%).”

The EU’s trade deficit with China increased to €181 billion in 2020, an increase from 164.7 billion in 2019.

The figures come as the China and EU are seeking to build further trade through an investment deal that was announced in principle on December 30, after years of negotiations.

However some EU politicians are understood to be concerned about the impact the deal could have on the trading bloc’s relationship with the US.

Trade and China are set to be high up the list of topics to discuss when President Joe Biden holds the first event with other leaders from the G7 nations in a virtual meeting on Friday.

The White House confirmed on Sunday Mr Biden wants to discuss the coronavirus pandemic, the world economy and dealing with China.