Debt contagion
- By Mei Xinyu
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Beijing Review, December 13, 2011
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Opening the chinese market: a portuguese vintner introduces a wine to visitors during a tasting of premium portuguese wines in Beijing in october. [By Zhao Wanwei/Beijing Review] |
Bilateral trade
China's trade with crisis-ridden European nations is only a small proportion of its total foreign trade.
In 2009, China's export volume was about $1.2 trillion. Its export volume to the EU was $236.28 billion. And its exports to PIIGS countries (Portugal, Ireland, Italy, Greece and Spain) were $41.68 billion, which accounted for 3.47 percent of China's total exports and 17.64 percent of China's exports to the EU.
In 2010, China's export volume was $1.58 trillion. Its exports to the EU were $311.24 billion. It exported $57.78 billion to PIIGS countries, 18.6 percent of its exports to the EU, and 3.7 percent of its total export volume.
As long as big EU economies like Italy, Germany, France and Britain don't collapse, the sovereign debt crisis will not greatly decrease the EU's demand for Chinese exports. Besides, the crisis will not affect re-exportation in countries such as Greece and Italy and tourist consumption in Spain and Portugal.
Demand in non-crisis countries, which have allocated funds to rescue their partners in trouble, may also drop. But as long as these nations keep themselves out of crisis, their demand will not decrease too much.
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