The EU: China’s Largest Business Partner

The European Market

The European Union has delivered half a century of stability and prosperity to a vast range of countries. It has helped to raise the European standard of living, it has developed a single Europe-wide market and it has launched the single European currency.

 

Within a decade, the European Union will be one of the largest and most important trading groups anywhere in the world. Now is the time to learn more about the European market and its assets.

Members of the EU

   

Following the two devastating World Wars of the 20th century, a number of European leaders became convinced that the only way to establish a lasting peace was to unite the European states both economically and politically.

 

When it began in the 1950s, the EU consisted of just six countries: Belgium, Germany, France, Italy, Luxembourg, and the Netherlands. The United Kingdom, Denmark, and Ireland joined in 1973. Greece, Spain, and Portugal followed soon afterwards. In 1995 Austria, Finland, and Sweden were the next in the row. And finally, in 2004, the biggest enlargement ever took place, with 10 new central and eastern European countries joining.

 

Today, the European Union consists of 25 countries, a number that is undoubtedly going to increase within the next few years. Just how many countries will join in this period is not yet clear. The number of new member states most certainly depends on applicant countries meeting various economic criteria.

Member states: Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, the Netherlands, the United Kingdom

Applicant states: Bulgaria, Croatia, Romania and Turkey

Capital of the EU: Brussels

Flag description: 12 five-pointed gold stars arranged in a circle on a blue field

Socio-demographic figures

On the map of the world, the European Union is not a huge area. However, it has the world's third largest population, after China and India.

Population of the 25 member states: 456,863,300

 

Population growth rate for the EU: 0.15%.

Net migration rate: 1.5 migrants/1,000 population

Over the past decade the EU countries have become wealthier. Their citizens' standards of living have risen appreciably. They have become more affluent and thus more active consumers. For the economy, the number of people of working age – up to 65 years old – is an important factor, as well as the general life expectancy.

Life expectancy: 78.3 years

Number of people of working age: 67.2%

Economy

The European market is a growing market. The EU is striving to bolster Europe's trade position and its political and economic power. Recently the EU admitted 10 central and eastern European countries that are economically less developed than the first 15 member states. Nevertheless, the European market can still be regarded as a strong economic power.

GDP: 9.54 trillion euros

Growth rate of the GDP: 2.4%

Inflation rate: 2.1% 

In 2004, in the 25 EU member states, about 63% of the working-age population – up to 65 years old – had a job or a business activity.  

 

Labour force: 215 million people

 

Labour force in industry: about 29% of the entire labour force

Labour force in agriculture: about 4% of the entire labour force

Labour force in services: about 67% of the entire labour force

Transport is a vital part of the European economy. As the economy grows, more and more products are carried across the continent by all modes of transport. With a total of 222,293 km of railways, a total of 4,634,810 km of highways, some 53,512 km of waterways and a large number of important airports, the EU has access to an extensive transport network. As a consequence one of the most profitable sectors of the EU is the transportation sector.

 

In the heart of Europe – including France, Belgium, the Netherlands, Luxembourg, Germany and the UK – distribution is a very lucrative sector. Thanks to the high quality of the infrastructure and the low land and rental prices many companies install a distribution centre in these centrally located countries.

 

Last but not least, logistics has also become one of the main economic sectors that is flourishing in these six countries. Belgium, the Netherlands and Luxembourg are world leaders in the logistic sector. Thanks to their strategic location, these countries are a real gateway to a wide European consumer market. Stock Management, Order Picking and Follow-Up systems both in hardware and software are just a few of their successful products.

Currency in the EU

The European Monetary Union first introduced the euro as a common currency to be used by financial institutions of member countries. In 2002, the euro finally became the sole currency for everyday transactions within most of the member countries.

Members of the EU using the new currency: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain

Members of the EU not yet using the new currency: Cyprus, Czech Republic, Denmark, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia, Sweden, the United Kingdom 

The 10 new member states of central and eastern Europe may choose to adopt the euro, under strict conditions: they must meet the fiscal and monetary criteria of the EU.

The single European currency offers the European Union the chance to be a market without frontiers. During the coming decade the euro will most certainly parallel the growth of the economic market of the EU as one of the most important world currencies.

The EU welcomes business from China

China is by far the most significant centre of growth in the Asian region. Its rapid economic development in the past twenty years has had a great impact on EU-China trade and on their economic relations.

China and the EU are two of the biggest markets in the world. They have everything to gain by deepening their commercial ties. Today China is already a crucial economic partner for the EU. In 2004 the EU became China's main trading partner.

A forward-looking policy of business engagement with China is very important for the EU.

EU Country Data

Belgium

France

Germany

Luxembourg

Netherlands

United Kingdom