China Registers a New Cross-Border E-Commerce Company Every 20 Minutes—80,000 and Counting
Issue 164, Monday 23rd September 2024
EU’s July 2024 Deficit with China Nears €1 Billion Per Day, Echoing 2022 Imbalance
In July, the EU’s trade deficit with China jumped by 12% compared to the same month last year. This follows a first semester where the EU successfully reduced its deficit with China by over 10%.
While EU27 exports to China rose by 4%, imports from China surged by 8% in July. This pushed the trade deficit up to €28 billion, compared to €25 billion in the same month last year.
The July 2024 deficit is nearing €1 billion per day, a staggering imbalance reminiscent of many months in 2022.
Top Imports in July
The top 10 imports make up one-third of the EU27’s total imports from China.
In July, the most relevant increase in imports came from chemicals.
Imports of heterocyclic compounds surged to nearly €2 billion, up from €0.6 billion a year earlier. This spike is driven by increased imports of compounds used in weight loss drugs, highlighting the complex supply chain interdependence between the EU and China in the pharmaceutical sector.
Automobile
Between January and July, imports of pure electric cars from China to the EU fell by 15% in value, dropping to €4.9 billion from €5.8 billion last year.
Despite this decline, the value of e-car imports in July remained flat compared to the same month in 2023, likely due to vehicles stockpiled at ports from earlier months that had not yet cleared Customs.
Two key points stand out: imports of car parts rose by 25%, while hybrid car imports surged by 10%. Overall, auto-related imports from China increased by 25% in July compared to the same month last year.
Top Exports in July
As with imports from China, the top ten export categories also account for one-third of the EU27’s total exports to China.
Automobile
Automotive exports remain at the forefront of the EU’s shipments to China, but the decline that began post-COVID shows no signs of slowing. In July, exports plunged by 20% compared to the same period last year.
The escalating tensions between the EU and China over tariffs on Chinese-made electric vehicles, combined with potential retaliatory measures targeting automotive exports from Austria, Germany, Italy, and the Bratislava hub, are casting a shadow over the future of EU-China trade relations.
Lithography machinery for printing semiconductor wafers
China’s growing demand for lithography machinery, primarily supplied by the Netherlands and Austria, has led to a significant export surge from the EU.
This category has now become the second-largest EU export to China, with a remarkable year-over-year growth of 92% in July. Exports soared to over €1 billion, doubling from half a billion in the same month last year.
High-end turbojets
Exports of turbojets to China with a thrust exceeding 132 kilonewtons surged in July, reaching over €1 billion, up from €0.7 billion in July 2023. This represents a year-on-year growth of 97% for the entire turbojet category.
The case of pork
EU pork exports face the looming threat of punitive tariffs as China continues its dumping investigations into the EU pork industry. From the recent figures, it appears that EU exporters are acting swiftly, potentially trying to maximize exports before any restrictions or tariffs are imposed.
Pork exports, including offal, from the EU to China rose by 22% in July, increasing to €203 million from €166 million in the same month last year.
Olive Oil
After two challenging crop seasons, olive oil exports to China are beginning to rebound. In July, exports surged by over 100% in value compared to the same month last year.
Wines
EU wine exports to China continue to hit new lows, with July seeing a year-on-year decline of 6% in value. This category is in a full-blown crisis for the EU.
Agri-food in general
One of the EU's most cherished categories, a powerhouse in the agrifood sector, saw exports drop by 3.4% in July.
Beauty
Another category feeling the squeeze is beauty products. EU exports to China dropped by 24% in July, falling to €161 million from €211 million a year earlier.
Peat
Peat, a controversial category heavily contested in the EU for environmental reasons, continues to see rising exports to China—a country where overexploitation of wetlands led to a ban on peat extraction years ago. July growth of exports over 30%
Footwear
Footwear exports surged by 37% in July, driven, as usual, by Italy.
Electric Cars: How It Started. How It’s Going
China’s Cross-Border E-Commerce Craze: 80,000 Companies and Counting
China's export of affordable goods through online platforms has become a new lifeline for its economy. While cross-border e-commerce (CBEC) flows in both directions, the reality is clear: for every dollar China imports via CBEC, it exports ten. This surge is so large that governments from Southeast Asia to the U.S. and the EU are exploring ways to slow the tide.
Seventy-five new CBEC companies are registered each day—that's equivalent to a new one every twenty minutes.
China’s Imports of Enriched Uranium from Russia Face Increased Scrutiny
The U.S. government is investigating whether China is helping Russia bypass the ban on Russian uranium imports by bringing in enriched uranium from its neighbor and exporting its own uranium to the U.S.
China's uranium imports from Russia are projected to double in 2024.
China's Thirst for Copper Cathodes
Staggering: In 2023, China imported nearly 40% of the world's copper cathodes. In 2024, it's on track to amass 50%
China and Russia Approach the Limit of Their Trade Capacity
A quarter of a trillion USD — that's it
China-Philippines Trade Falls 20% Under Marcos Jr., Down from Peak During Duterte Era
However, China keeps surplus afloat
China Doubles Exports to Brazil in the Last 5 Years
The EU's prospects of signing a trade agreement with MERCOSUR appear slim. Xi Jinping is set to meet with President Lula in early November, on the sidelines of the G20 summit in Rio.
At this rate, Brazil's 16-year streak of trade surpluses with China may soon come to an end
Sluggish Retail Sales is Becoming the New Norm
China Boosts Intellectual Property Imports by 50% Since COVID
