China in 2020 displaced the United States as the European Union's biggest trading partner largely because of its early recovery from the economic ravages of the COVID-19 pandemic.
In 2020, EU merchandise exports to China increased by 2.2%, while imports rose 5.6%, said Eurostat (the European Statistical Office), which provides statistical information to EU institutions.
Eurostat said the bloc's total trade with China in 2020 amounted to $711 billion. Broken down, EU exports to China in 2020 hit $246 billion while imports reached $466 billion for a trade deficit of $220 billion.
Total EU trade with the U.S. came to $674 billion in 2020, 6% lower than 2019.
China's early and sustained recovery by the summer of 2020 from the pandemic helped drive sales of European products in China. Chinese consumers still showed a heavy preference for European cars and luxury goods.
As well, China's exports to Europe were propelled by strong demand for medical equipment to combat the pandemic and electronics and electronic devices that saw heavy demand due to lockdowns that kept millions of people at home.
Eurostat noted that EU trade started recovering from the pandemic during the second half of the year.
Trade between China and the EU could receive a huge boost this year if the EU ratifies the EU-China Comprehensive Agreement on Investment. The EU in December 2020 announced an agreement had been concluded in principle but has still to be ratified by the European Parliament.
