In July The People’s Republic of China surpassed the United States as the largest trading partner of the European Union. The total trade was 35.6 billion euros (49.4 billion U.S. dollars) according to the latest statistics from Eurostat. Chinese trade exceeded the US by 800 million euros. This makes up 13.4 per cent of the region’s total imports and exports.
The news of the European Union’s trade with China surpassing that of the US is being taken quite seriously. Previous China toppled Japan as the world’s second largest economy cementing their spot, not just as a regional power, but a world power as well.
This announcement comes as the US and China are preparing to engage in a round of economic warfare. The US is disturbed by its decline in the world economy and the rise of China in it. Recently the US has brought forth its Currency Exchange Rate Oversight Reform Act of 2011, a measure intended to harm the Chinese economy by adding tariffs to make up for its own failure to deal with its ongoing problems.
There is little doubt that this new accomplishment by China will add to the tension between them and the US. The greater fear is that this will make the possibility of physical war greater as the two powers vie for control of the world’s resources and control of its markets. A situation that proves the only way to peace is an equitable distribution of the world’s resources according to need, not profits.