China and Germany: How to Deepening the Trade and Economic Cooperation Dr. CHEN Xin May 25, 2012, Berlin

China's Trade in dynamic China had benefited from the Globalization. Especially after joinning the WTO, China's economic growth is mainly export driven. 100 million USD. China Custom.

similar in China-EU Trade 100 million USD. China Custom.

China's main trading partner in 2011 Trade volume Export Import Balance China 3642 1899 1743 156 EU27 567 356 211 145 USA 447 325 122 203 Japan 343 148 195 -47 Korea 245 83 163 -80 ASEAN 363 170 193 -23 Taiwan, China 160 35 125 -90 2009年，欧盟仍然是中国的第一大贸易伙伴，第一大出口市场，第二大进口来源地。日本是第一大进口来源地。 2009年，中国同日本、韩国和中国台湾的贸易继续表现为逆差，与这3方的逆差总额超过了中国与美国的顺差。 2009年中欧贸易顺差1085亿美元，比上一年的1601亿美元下降了32%，顺差大幅度收窄。 In 1 Bn USD. Resource: China Customs

USA/EU Deficit Surplus Surplus Deficit Increase Decrease Decrease China East Asia 从中欧贸易来看，中国对欧贸易表现为顺差，而中国对日本、韩国以及中国台湾则表现为逆差。 与此同时，这些经济体对欧盟的出口在减小。 而欧盟来自亚洲的进口整体增长幅度不大。 这说明，日本、韩国、中国台湾等经济体加大在华投资，发展加工贸易，通过贸易转移的方式，将原本的直接对欧贸易改由中国输送到欧洲。 另一方面，随着欧洲在华投资的加大，替代了原本从欧洲的进口，同时又增加了对欧洲的出口。 这2方面的因素最终形成了中欧贸易顺差的主要原因。 Surplus Increase

China's share in EU's import is increasing China's share in EU's import is increasing consistently, and US export to EU is decreasing Eurostat

and China's share in EU's export is increasing And China's share in EU's export is also invreasing. In 2000, China's share was 3%, and last year China reaches close to 9%. At the same time, we see the US share in the EU's export keep losing, from 28% in 2000 to 17% in last year. Eurostat

EU trade with US and China The trade volume will reached a moment soon when EU-China trade surpasses EU-US trade. Million Euro. Eurostat.

And China will soon become EU's biggest trading partner Which means: Deeper interdependency

Where is Germany in China-EU bilateral trade Germany takes 30% of the China-EU trade, where represents 21% China's export to EU27, and 44% China's import from EU27. China-German trade increased 19% in 2011, in which export increased 12% and import 25%. In China-EU trade, China has a surplus, whereas in China-German trade, China has a deficit. In 2010, it was 6 billion USD, and 16 billion in 2011

What's in world trade DE USA China Export Import 1278.1 1968.1 -690 Balance Balance/Trade volume Balance/GDP USA 1278.1 1968.1 -690 -21.3% -4.7% DE 1268.8 1067.1 201.7 8.6% 6.1% China 1577.8 1396.2 181.6 3.1% In Billion USD in 2010. Resource: WTO, WB

Bilateral investment By the end of 2011, German investment in China is 21 billion Euro with 5500 JVs, and at the same time China has 800 enterprises in Germany, 70% of them are SMEs. -- German embassy in Beijing

China is facing challenge of Globalization From export driven and investment driven growth to stimulate domestic consumption From industrial economy to Knowledge based economy

Opportunity for EU-China Cooperation When EU' design meets China's production When EU's technology meets China's market When EU's expertise meets China's social and economic development China's strong economic growth China's potencial huge domestic market EU's expertise in social and economic development EU's technology

When and How EU catches China's fast train Cooperation in China's urbanization Cooperation in sector fields, like energy, food safety, enviroment and clean technology, ect And a true strategy for long term cooperation

German example: improving investment enviroment China and Germany agreed to establish China-German Investment Information Center China and Germany agreed to implement and expand the SME managers training program China announced that China Development Bank will provide 2 billion Euro credit for supporting SMEs cooperation China and Germany agree to establish a joint shipping development fund, to enhance and deepen the cooperation in ship manufacturing, ocean transportation and harbour construction

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