BRIEFING PAPER

Number 7379, 5 November 2019

Statistics on UK trade By Matthew Ward

with China
Inside:
1. Key statistics, 2018
2. International context
3. Trade in goods
4. Trade in services
5. Regional trade
6. Appendix – UK trade with
China, 1999 - 2018

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 Number 7379, 5 November 2019 2

Contents
Summary 3
1. Key statistics, 2018 4
2. International context 6
3. Trade in goods 8
3.1 Exports 8
3.2 Imports 8
4. Trade in services 9
4.1 Exports 9
4.2 Imports 9
5. Regional trade 11
6. Appendix – UK trade with China, 1999 - 2018 13

Cover page image copyright: Prcflagphogel by Bon Adrien. Licensed under CC BY 2.0
/ image cropped.
 UK trade with China: a summary

This short note provides some key statistics on UK trade with China

UK exports to China £22.6 billion UK imports from China £44.7 billion

China was the UK's sixth largest export market China was the UK's fourth largest source of
in 2018, accounting for 4% of all UK exports of imports in 2018, accounting for 7% of UK
goods and services imported goods and services

USA 18.8% Germany 11.6%

Germany 8.7% USA 11.3%

Netherlands 6.9% Netherlands 7.2%

France 6.5% China 6.6%

Ireland 5.5% France 6.5%

China 3.5% Spain 4.7%

Trade balance with China −£22.1 billion

The UK recorded a trade deficit with China of
-£22.1 billion in 2018; a small surplus in
services was outweighed by a deficit in goods

£ billions

Exports 22.6

Imports 44.7

Balance -22.1

-60 -30 0 30 60

UK trade with China, 1999-2018 (goods and services, % total)

8.0%
Exports
UK trade with China has increased
6.0%
dramatically in recent years - in
Imports
4.0% 1999, China was the UK’s 26th largest
2.0% export market and 15th largest
source of imports, accounting for 0.8% of
0.0%
UK exports and 1.6% of
imports.
 Number 7379, 5 November 2019 4

1. Key statistics, 2018

In 2018:
• UK exports of goods and services to China were worth £22.6
billion, a record high, up slightly from 2017. This is the third
successive year on year increase in British exports to China.

• UK imports of goods and services from China in 2018 were £44.7

billion, also a record high. UK imports from China have now
grown year on year every year since 1999.

• The UK’s trade deficit with China was -£22.1 billion in 2018. This
was the UK’s second largest trade deficit with an individual
country - the UK’s trade deficit Germany -£22.6 billion. Taken as a
bloc, the UK’s trade deficit with the EU was -£66.4 billion.

UK trade with China, 2018 (£ billions)

Exports Imports Balance

Goods 18.0 43.0 -25.0

Services 4.6 1.7 2.9
Total 22.6 44.7 -22.1
Source: ONS

Overall, UK exports to China represented 3.5% of all UK exports; UK

imports from China represented 6.6% of all UK imports.
Looking at trade in goods only, the UK exported £18.0 billion to China
in 2018, a record high, up from £17.4 billion in 2017. UK imports of
goods from China were £43.0 billion, up slightly from 2017, resulting in
a trade deficit of -£25.0 billion in trade in goods.
The UK had a surplus of £2.9 billion on trade in services with China in
2018, exporting a record high of £4.6 billion of services and importing
£1.7 billion.
The UK has now recorded an overall trade deficit with China every year
since 1999 – surpluses in services have been more than outweighed by
deficits in goods.
In cash terms, UK exports from China have increased from £1.9 billion
in 1999; imports from China have increased from £4.2 billion – details
on UK trade with China since 1999 are available in the Appendix.
5 Statistics on UK trade with China

UK trade with China, 1999 - 2018

Goods and services, £ billions

50.0 Imports

40.0

30.0 Exports

20.0

10.0

0.0

-10.0
Balance
-20.0

-30.0
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Source: ONS
 Number 7379, 5 November 2019 6

2. International context
In 2018, China was the UK’s 6th largest export market and 4th largest
source of imports. China was the UK’s second largest source of imports
outside of the EU.
UK top 10 trading partners 2018, goods and services
Exports £ billions % of total Imports £ billions % of total

USA 120.9 18.8% Germany 78.6 11.6%

Germany 56.0 8.7% USA 76.6 11.3%
Netherlands 44.3 6.9% Netherlands 49.3 7.2%
France 41.7 6.5% China 44.7 6.6%
Ireland 35.1 5.5% France 44.4 6.5%
China 22.6 3.5% Spain 31.9 4.7%
Italy 20.7 3.2% Belgium 29.0 4.3%
Switzerland 20.2 3.1% Italy 25.6 3.8%
Belgium 19.1 3.0% Norway 22.0 3.2%
Spain 18.0 2.8% Ireland 21.6 3.2%

EU 291.0 45.3% EU 357.4 52.6%

World 642.2 100.0% World 680.0 100.0%

Source: ONS Pink Book

China’s share of UK trade has increased rapidly in recent years - in

1999, China was the UK’s 26th largest export market and 15th largest
source of imports, accounting for 0.8% of UK exports and 1.6% of
imports.
UK trade with China as a percentage of total trade
Goods and services, 1999 - 2018

8%
Imports
7%

6%

5%

4% Exports

3%

2%

1%

0%
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018

Source: ONS
7 Statistics on UK trade with China

In 2018:
• The UK was China’s 9th largest export market for goods,
accounting for 2.3% of all China’s goods exports.

• The UK was China’s 21st largest source of imported goods,

accounting for 1.2% of all China’s goods imports.
China's largest trading partners, 2018 (trade in goods)
Exports % total Imports % total
USA 19.2% South Korea 10.2%
Hong Kong 12.1% Japan 9.1%
Japan 5.9% Taiwan 9.0%
South Korea 4.4% USA 7.9%
Vietnam 3.4% Germany 5.3%
Germany 3.1% Australia 5.3%
India 3.1% Brazil 3.9%
Netherlands 2.9% Vietnam 3.2%
UK 2.3% Malaysia 3.2%
Taiwan 2.2% Russia 2.9%
Source: UNCTAD
 Number 7379, 5 November 2019 8

3. Trade in goods
3.1 Exports
In 2018, the UK’s single largest export to China was non-monetary
gold, valued at £4 billion; this represented 21% of all UK goods exports
to China.
Other British goods exports to China included road vehicles, valued at
£4 billion (19% of goods exports), petroleum, valued at £4 billion (19%
of goods exports) and medicinal and pharmaceutical products, valued at
£1 billion (5% of goods exports).
Combined, these four products groups comprised 64% of all the UK’s
goods exports to China.
UK goods exports to China by type, 2018
£ billions % of total
Gold, non-monetory 4.3 20.9%
Road vehicles 3.9 18.8%
Petroleum, petroleum products 3.9 18.7%
Medicinal & pharmaceutical products 1.1 5.3%
Power generating machinery & equipment 0.8 3.9%
Electrical machinery & appliances 0.7 3.5%
Professional, scientific & controlling instruments, n.e.s. 0.6 3.0%
General industrial machinery & equipment 0.6 2.8%
Metalliferous ores & metal scrap 0.5 2.4%
Non-ferrous metals 0.4 1.8%
Source: HMRC, UK Trade Info

3.2 Imports
In 2018, the UK’s single largest import from China was telecoms
equipment, valued at £6 billion, representing 15% of all UK goods
imports from China
Other imports from China included miscellaneous manufactured articles
(a category that includes plastic articles, toys, games and sporting
goods) valued at £5 billion (11% of all goods imports), office machinery,
valued at £4 billion (10% of all goods imports) and electrical machinery
and equipment, valued at £4 billion (9% of all goods imports).
UK goods imports from China by type, 2018
£ billions % of total
Telecomms & sound recording equipment 6.4 14.9%
Miscellaneous manufactured articles n.e.s. 4.9 11.4%
Office machines & adp machines 4.0 9.5%
Electrical machinery & appliances 3.9 9.2%
Articles of apparel & clothing accessories 3.8 8.8%
Manufactures of metal n.e.s. 2.2 5.2%
Furniture & parts thereof; bedding, mattresses 2.1 4.9%
General industrial machinery & equipment 1.7 3.9%
Footwear 1.2 2.7%
Road vehicles 1.1 2.7%
Source: HMRC, UK Trade Info
9 Statistics on UK trade with China

4. Trade in services
4.1 Exports
In 2018, the UK’s single largest service export to China was “other
business services”, valued at £1 billion, making up just over a fifth of UK
service exports to China. This category includes legal, accounting,
advertising, research and development, architectural, engineering and
other professional and technical services.
Other service exports to China included travel services – this category
includes services provided by hotels and restaurants, travel agencies and
tour operators and will include services consumed by a resident of one
country in another – for example a Chinese tourist staying in a hotel in
the UK will count as a British service export; a British tourist staying in a
Chinese hotel would count as a service import.
The UK’s trade surplus in travel services with China (worth £0.7 billion in
2018) was the UK’s third largest surplus in travel services, after Australia
and Canada.

UK service exports to China by type of service, 2018

£ millions % of total
Other Business Services 1,000.0 21.7%
Travel 950.0 20.6%
Transportation 910.0 19.8%
Intellectual property 440.0 9.6%
Telecommunications, computer &
396.0 8.6%
information services
Financial 359.0 7.8%
Personal, Cultural and Recreational 210.0 4.6%
Government 117.0 2.5%
Insurance and Pension 111.0 2.4%
Maintenance and Repair 60.0 1.3%
Construction 44.0 1.0%
Manufacturing 10.0 0.2%
Total services 4,607.0 100.0%
Source: ONS

4.2 Imports
The UK’s largest service import from China was transportation services,
which accounted for just over a quarter of the UK’s service imports from
China. Transportation services include passenger and freight transport.
Travel services made up just under a fifth of UK service imports from
China – combined these two categories accounted for 46% of all
service imports from China.
 Number 7379, 5 November 2019 10

UK service imports from China by type of service, 2018

£ millions % of total
Transportation 462.0 27.6%
Travel 311.0 18.6%
Telecommunications, computer &
97.0 5.8%
information services
Financial 57.0 3.4%
Government 49.0 2.9%
Manufacturing 23.0 1.4%
Construction 17.0 1.0%
Personal, Cultural and Recreational 11.0 0.7%
Intellectual property 10.0 0.6%
Maintenance and Repair 5.0 0.3%
Insurance and Pension 2.0 0.1%
Total services 1,674.0 100.0%
Source: ONS
11 Statistics on UK trade with China

5. Regional trade
HMRC publish data on trade for Scotland, Wales and Northern Ireland
and the English regions. These figures are for trade in goods only.
The South East accounted for just under a quarter of the UK’s goods
exports to China in 2018, valued at £4 billion. Petroleum and petroleum
products made up 56% of goods exports to China.
The West Midlands accounted for 19% of the UK’s goods exports to
China (valued at £3 billion), followed by the North West at 10% (valued
at £2 billion) and Scotland at 9% (valued at £2 billion).

UK regional goods exports to China, 2018

£ billions % of total
South East 3.9 23.8%
West Midlands 3.1 19.2%
North West 1.6 9.8%
Scotland 1.5 8.9%
East 1.3 8.1%
London 1.2 7.5%
Unknown 0.9 5.2%
East Midlands 0.7 4.4%
South West 0.7 4.1%
Yorkshire and the Humber 0.6 3.8%
Wales 0.4 2.3%
North East 0.3 2.0%
Northern Ireland 0.2 1.0%
Grand Total 16.4 100.0%
Source: HMRC, UK Trade Info

London accounted for 21% of the UK’s goods imports from China in
2018, valued at £9 billion. Telecoms equipment made up 44% of
London’s goods imports from China, worth £4 billion.
The South East accounted for 13% of UK goods imports from China
(valued at £6 billion), followed by the North West at 11% (valued at £5
billion).
 Number 7379, 5 November 2019 12

UK regional goods imports from China, 2018

£ billions % of total
London 9.2 21.6%
South East 5.6 13.3%
North West 4.5 10.5%
West Midlands 3.8 9.0%
East 3.2 7.6%
Yorkshire and the Humber 3.0 7.0%
Scotland 2.9 6.8%
East Midlands 2.7 6.3%
South West 2.4 5.6%
Unknown 2.3 5.4%
Wales 1.1 2.7%
North East 1.1 2.7%
Northern Ireland 0.7 1.6%
Grand Total 42.6 100.0%
Source: HMRC, UK Trade Info
13 Statistics on UK trade with China

6. Appendix – UK trade with

China, 1999 - 2018
UK trade with China, 1999 - 2018
Goods and services
Exports Imports Balance
£ billions % of total £ billions % of total £ billions
1999 1.9 0.8% 4.2 1.6% -2.3
2000 2.2 0.8% 5.7 1.9% -3.5
2001 2.6 0.9% 6.9 2.2% -4.3
2002 2.4 0.9% 8.4 2.6% -5.9
2003 3.2 1.1% 9.8 3.0% -6.7
2004 4.2 1.4% 11.4 3.3% -7.2
2005 4.8 1.4% 14.2 3.7% -9.4
2006 5.5 1.4% 17.3 4.0% -11.7
2007 6.2 1.6% 19.8 4.7% -13.6
2008 8.2 1.9% 23.7 5.1% -15.5
2009 7.6 1.9% 25.9 6.0% -18.3
2010 10.5 2.3% 31.0 6.4% -20.5
2011 13.1 2.6% 31.7 6.0% -18.6
2012 14.3 2.8% 31.8 6.0% -17.5
2013 17.7 3.3% 35.9 6.5% -18.2
2014 19.4 3.7% 36.8 6.6% -17.4
2015 17.3 3.3% 37.4 6.7% -20.0
2016 18.0 3.2% 41.2 6.9% -23.2
2017 21.7 3.5% 43.7 6.7% -22.0
2018 22.6 3.5% 44.7 6.6% -22.1
Source: ONS
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