Mar. 29 – China imports and exports has been serving well in global economic crisis time, especially China economic ties with the Netherlands have been strengthened further; Dutch imports from China are continually rising while China’s imports from the Netherlands and neighboring countries are also seeing a steady increase. What is the significance of China’s imports for the Dutch national economy?
China Imports Goods & Services from the EU – EU exports to China value exceeding 200 billion euros. Of that amount, 45 percent is on account of Germany; the Netherlands’ share is 5 percent. Machinery and transport equipment form the most important group of EU export products to China. Some of these products are used in China’s manufacturing industry but the group also includes passenger cars. Evidently, the EU is only one among many players on China’s import market. Not much more than 16 percent of China’s imports come from the EU. The EU’s share is no larger than 20 percent in any group of goods. The highest percentage share of EU goods is found in machinery and transport equipment, which is also the largest commodity group among EU export products for the Chinese market.
German Exports to China – The bulk of Chinese imports of machinery and transport equipment from the EU is of German origin. Out of the 90 billion euros in related goods imported by China, Germany accounts for 50 billion euros. In addition, Germany is a major player among EU members in the field of chemical products and various manufactured goods. Taking a closer look at German exports of machinery and transport equipment, road transport vehicles such as cars and trucks stand out as the largest commodity group with a total value approaching 20 billion euros. Other major German export products are electrical equipment and various types of manufactured goods which are used by Chinese manufacturers. One-sixth of German goods exports to China are manufactured products including instruments (for professional use), metal and rubber products and yarns.
Dutch Exports to China – As for the Netherlands, exports of goods and services to China amounted to 12.1 billion euros in 2016 (for services, the figure is an estimate based on 2015), up from 5.2 billion in 2008. In Dutch exports as well, the largest group of products sold to China consists of machinery and transport equipment; these take up nearly one-third of goods exports to China. Other major export products for the Chinese market are mineral fuels and raw materials, presumably for manufacturing purposes. In addition, the Netherlands accounts for over 10 percent of all EU exports to China of materials, food, beverages and tobacco products.
The Dutch Unlike German Exports – Although the Netherlands’ exports of transport equipment to China play a minor role when compared to the rest of the EU, this category is important to the Dutch economy. Unlike in German exports, which are dominated by road vehicles, the share of specialized machinery and electrical equipment form is larger in Dutch exports. In 2015, China ranked 9th on the list of largest export markets for the Netherlands in terms of goods exports. The top position was held by Germany, with other EU countries following at a distance. The volume of exports to China is one-tenth of exports to Germany.
Export Value – As Dutch manufacturers import goods and services towards the production of export goods, the export value is not equivalent to the value added to the Dutch economy. The value added to the economy by re-exports is only a fraction. Dutch products also include a large foreign component; out of the 9.3 billion euros in goods and services which were exported to China in 2014 (later adjusted to 9.8 billion), a value of 4.4 billion euros was added to the Dutch economy, equivalent to 0.7 percent of GDP.
Vice-Versa – The Netherlands supplies ‘components’ (which may refer to services) for the manufacturing of products in other countries which are then exported to China. For instance, the Netherlands supplies spare parts to the German car manufacturing industry. Likewise, part of the export sales to China eventually end up in another part of the world as Chinese manufacturers incorporate such goods and services into their export products. Dutch products ending up with Chinese final consumers – whether or not as a component – contributed 4 billion euros to our economy. This is an alternative way of looking at a country’s exports.
Chinese Companies in The Netherlands – the Dutch is doing well in attracting Chinese companies to invest, among others, Rotterdam Port plays an important role, and the location of the Netherlands is also beneficial, in addition, climates of foreign investment is friendly, big plus with stable Dutch economy and social safety. There were some meaningful Chinese companies investments took place in recently, a growing number of Chinese companies located in the Netherlands, there were also Chinese M&A deals were made with successes. Economic relations between the Netherlands and China are not limited to trade; there are also cultural exchange events. A rising number of Chinese companies are active in the Netherlands, including Chinese cultural organizations located in The Hague. For example, China Cultural Centro officially opened in The Hague which intends to strengthen cultural links between Netherlands and China. At this moment, China Company’s investment projects score No. 3 in creating jobs in the Netherlands. After the U.S., companies from the United Kingdom, China, Japan and France created most employment, according related Netherlands statistics reporting. For those Dutch legal and financial service firms who are in the suitable position to offer useful support for Chinese investments, there is a List of Chinese Companies Invested in The Netherlands available.
Chinese Companies in Germany – Germany got top score with total number of Chinese company’s investments. Germany is targeted by the Chinese companies as the preferred location to invest, actually it is a positive thing for both sides – the German & the Chinese, but some others do not see this way, that’s OK. The true reason behind Chinese invested heavily in Germany is that Made-in-Germany has long been reputed with advanced technology and higher quality, that’s the Chinese companies needed the most which Germany has a plenty. Although the German related authority is altering the situation with new policies, Chinese M&A deals were made with German companies were fire deals which benefited both sides, preserve technology alive, and keep business running, it’s two-sides story. For the List of Chinese Companies Invested in Germany available upon request, please contact with DCCC, or email to: email@example.com