The pandemic had hit every country’s economy very badly. Many countries lost their position coupled with the huge economic crisis reported due to the COVID-19. European Union (EU) consist of 27 countries and have a strong position in international trade. At the time of pandemic when the whole world was suffering and was searching for the solution, China got a chance to have a potential trade with the EU and overtakes the US. For instance, the trade volume with China reached $711 billion in 2020 rather than $673 billion for the US. EU exports increased by 2.2% to nearly $245.6 billion, while imports from the People’s Republic of China increased by 5.6% to nearly $465.2 billion at the same time. In the same period, EU exports to the US fell by 13.2% and imports by 8.2%. In 2020, the year Britain formally left the eurozone; Eurostat said trade with the UK plunged, although it was in a transition phase to blunt the impact of Brexit until December 31. EU exports to the UK fell by 13.2%, while imports from across the channel fell by 13.9%, as per the Eurostat.
China has witnessed a rise in the demand for European cars and luxury cars in 2020. Apart from these, China exports to Europe led by a potential demand for medical equipment and electronics. As a result, the EU and the US trade fell resulting in a decrease in import-export percentage. Additionally, as per the Eurostat figures released on 15-Feb-2021, the EU’s trade deficit with China also increased from $199 billion to $219 billion. There are chances that the US president Joe Biden might have a meeting with the EU and will have a settlement for the upcoming years. European is targeting the Chinese market and wants to access the market that’s why the deal between China and the EU is getting stronger day by day. This helped drive sales of European products, particularly in the automotive and luxury goods sectors, while the strong demand for medical equipment and electronics has benefited China’s exports to Europe. Dethroning the US comes as the EU and China are trying to ratify a long-negotiated investment agreement that would give greater access to the Chinese market to European companies.
