Dutch trade becomes increasingly dependent on China

Dutch trade is increasingly intertwined with China. Both imports of goods from China and re-exports, that is, goods that the Netherlands immediately re-exported, increased. Especially the telecommunications industry is dependent on China.

This is reported by the Central Bureau of Statistics (CBS), which works with the Central Planning Bureau (CPB) on economic ties with China.

Last year, the Netherlands imported about 50 billion euros worth of goods from China, up from around 40 billion euros the previous year. Two-thirds of imports are re-exported almost untouched, and this trend is growing.

Imports from China are growing faster than overall import growth. This means that China is becoming an increasingly important trading partner for the Netherlands. While the share of China in total imports was over 8 percent in 2015, it was close to 10 percent last year.

Mobile phones

Products left in the Netherlands from China are either processed by Dutch companies or purchased directly from Dutch households. This mainly affects computers, mobile phones and furniture.

The telecom industry has the largest import dependency on China: about 25 percent of its imports come from China, compared to 15 percent in 2015. It is followed by IT and information services and financial services.

Imports of goods from China consist of four streams: (1) goods intended for direct domestic consumption (consumer and investment goods, especially computers, telephones and furniture), (2) goods processed or processed for domestic consumption, (3) processed and re-exported and (4) immediately re-exported goods (mostly raw materials and semi-finished products and high-tech end products such as computers, telephones, monitors, microchips and semiconductors).

Increasing dependence on China for products and services has been a topic of discussion for some time, not only in the Netherlands. For example, at the end of October, it was announced that part of Germany’s Hamburg port would fall into Chinese hands. The co-owner is the Chinese state-owned company Cosco, which currently owns the ports of Antwerp, Rotterdam and a port near Athens.

political pressure

Opponents of the deal point out that it gives China political influence. In the event of a conflict between Germany and China, the port, which is very important to the German economy, can be an economic weapon.

Dependence on China was also evident during Corona, when world trade stalled. It suddenly took three times longer for the containers to arrive in the Netherlands. Dutch entrepreneurs are starting to scratch their heads about shipping their products from this far away.

In addition to this increasing dependency, how products are produced in China is also discussed. For example, several reports, including those from the United Nations, show serious human rights violations against the Uyghurs, a Muslim minority in the Xinjiang region. It is estimated that more than one million Uyghurs are being held. In the labor camps, they are also forced to produce products for export. China disagrees.