American media: China's best business partner is the European Union

The US News weekly September 18 article, the original title: China's best new partner while the US and the US are battling for trade deficits and exchange rates, Europe has quietly replaced the United States as China's largest trading partner and best business partner. By the end of July this year, Sino-US trade amounted to only $243 billion trillion, while China-EU trade soared to 306 billion U.S. dollars. and to import technology and infrastructure to support the country's breakneck growth, China is also more reliant on Europe.　　According to a recent report by the U.S. Foreign Relations Committee, China has even begun to convert $2.7 trillion trillion in foreign exchange reserves from the dollar to the euro in part. But Europeans are less nervous than Americans in the face of the impact of the Chinese economy. Overall trade in Europe is generally stable, so the trade deficit with China, which accounts for 1.1% of the EU's 2009 GDP and 1.6% of America's 2009 GDP, is not troubling.　　In addition, most European economies rely on international trade (exports represent an average of 55% of the European Union's GDP, while US exports account for only 11%), so the public's fear of trade is lower than that of the US. Not only that, because of China's demand for European infrastructure, machinery and high-end consumer goods, European exports to China are growing at a rate of 49% per cent a year. In competition with the Chinese, European companies have learned that the war can only be won by relying on high-end products, and unfairly by setting up factories and producing cheap goods locally. In the textile industry, for example, Italian companies specialize in luxury goods, which have achieved great success, while German companies are intent on a surprise in the High-tech nano-textiles sector. This method also applies to other industries, whether chemical or construction equipment. While European exporters have benefited from the weakening of the euro (the euro has dropped 10% against the renminbi this year), many companies have done well in the euro's rise as they are not just playing price wars. So while the exchange rate may have an impact on China-EU trade, it will not be the only factor. (Liang translation)