China overtakes U.S. as Europe’s main trading partner for the first time

(Source cnbc.com)

China dethroned the U.S. last year to become Europe’s top trading partner for the first time, data from the European statistics office has shown.

European Union exports to China grew by 2.2% last year and imports rose by 5.6%. In comparison, exports to the U.S. dropped by 8.2% and imports fell by 13.2%. The latest figures, released Monday by Eurostat, showed that China now has an even bigger role in how European economies perform.

“The reason behind it is clearly the fact that China/Asia is the only region going through a nice V-shaped recovery,” ING Germany economist Carsten Brzeski told CNBC on Tuesday.

The Chinese economy is performing slightly closer to pre-Covid levels in comparison with other parts of the world, where restrictions are still taking a toll on activity. China is expected to register the second-highest growth rate globally in 2021, according to forecasts from the International Monetary Fund.