The position of the world’s largest trading nation has been shifted from country to country, and it will continue shifting. For a long time, the United States was the largest trading nation globally, until 2013 when China took over. Before 2013, China had held the record for being the largest exporter of goods worldwide, a title it got in 2009. China’s total exports were officially estimated to be at $2.641 trillion in 2019.
Meanwhile, before the United States became the world’s biggest trading nation, the title belonged to Britain. Britain was tagged the workshop of the world for all of the 19th century; when it came to trade, Britain ruled globally. However, China rose to claim that title by the 21st century, becoming the world’s factory. Meanwhile, according to the size of China’s economy, there’s a good chance it has been the largest exporter of goods in many countries.
The EU, USA, and China: The World’s Major Traders
The European Union, the United States of America, and China recorded the world’s highest trade in goods values in 2020. When put together, the three countries accounted for about 45% of global imports and exports of goods. China had the highest export goods values in the world, which were capped at 2,268 billion Euros. The European Union came second with 1,932 billion euros, while the United States came third with 1,252 billion euros. 
When it comes to import goods values, the United States had the highest trade deficit, then the UK, India, Hong Kong, and Canada. China, on the other hand, recorded the largest trade surpluses, followed by the EU, Russia, South Korea, Mexico, Singapore, and Japan. The US has always been a major exporting economy, but its significance paled in comparison to the EU and China. While its share in total exports increased by a slight 0.9% in 2016, it went back down by 1.1% in 2020.
The EU’s share in total exports trumped China’s, but the latter’s steady growth made it overtake the former in 2015. As such, by 2020, China’s exports growth reached a peak of 18.8%, while EU’s was at 16.0%. Also, China’s share in imports has increased from 11.2% to 16.9% between 2010 and 2020. Conversely, the EU’s import goods values decreased from 15.6% to 13.8% within the same timeframe.
Trading Over Time and By Product in the EU, USA, and China: The Stats
The top three leading trading players in the world, the EU, USA, and China, have experienced an evolution in trading. Below is an analysis of each country’s trading values over time and by product.
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The European Union
The European Union recorded a deficit of 35 billion euros in goods trading in 2010. It realized a 3.0% average annual growth in exports and a 1.5% growth in imports between 2010 and 2020. Thus, by 2020, the European Union recorded a trade surplus of 218 billion euros in 2020.
When it comes to product groups, the most exported product groups in the EU in 2020 were machinery and vehicles. These two product groups accounted for 39%, other manufactured products accounted for 22%, while chemicals accounted for 21%. Together, the total share of manufactured goods in EU exports amounted to 83% in 2020.
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The United States
The US had a trade in goods deficit in 2010 that amounted to 521 billion euros. Meanwhile, it recorded a 2.6% average annual growth rate in its exports between 2010 and 2020. For exports, it had a 3.6% growth rate, causing the country’s trade deficit to grow to 854 billion euros in 2020.
Like the EU, the most exported products in the US in 2020 were machinery, vehicles, other manufactured products, and chemicals. These product groups also make up the top three in imports. Altogether, they accounted for 66% of all exports goods and 81% of all imports.
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China
Between 2010 and 2020, China saw an average annual growth rate in its exports capped at 6.7% and imports at 5.5%. It had a surplus of 137 billion euros in trade in goods in 2010, which rose to 468 billion euros in 2020. Meanwhile, the country’s surplus had previously peaked at 535 billion euros in 2015.
By product groups, China’s manufactured goods made up 94% of its exports in 2020, with machinery and vehicles being the largest. Followed by machinery and vehicles are other manufactured products at 39% and chemicals at 7%.
Machinery and vehicles were also China’s largest imports, capping at 40% of the country’s total exports. Meanwhile, the largest trade deficits it recorded were for raw materials and energy products categories.
Other Leading Players in Global Trading
Apart from China, the European Union, and the US, there are other top players in global trading. Together, these economies represent more than 53% of the world’s trade, with the top five accounting for 38.1% of total trade. These countries include Germany, which has maintained its position as one of the largest merchandise exports. This position was marked by the country’s steady growth in vehicle parts as well as pharmaceutical products.
The Netherlands is another dynamic exporter; it recorded an 11% increase in its exports in 2018. This increase was mostly due to the over 30% increase in the value of medication and exports. After the Netherlands, Japan comes next, with a 6% growth in exports in 2018 and a 2% decline in year-on-year terms. Japan is a net petroleum importer, thus the increase in oil prices contributed to the country’s 10% rise in imports in 2018.
The Leading Traders of Commercial Services
The United States has been and remains the world’s leading trader in commercial services, holding a 14% share in exports and 9.8% in imports. However, there has been a profound change in the composition of leading services traders in the last ten years.
While the US remains number one, China has jumped from being seventh to second. Also, India and Singapore overtook Italy and Spain, moving into the ninth and tenth positions respectively.
In developed economies, Ireland has moved to seventh place from tenth, thanks to the rapid growth in computer services exports. Below are the stats of the top eight leading countries in the trading of commercial services.
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The United States
The US remains the number one leading trader of commercial services, and it has seen an increase in imports and exports. For instance, the US’s exports increased by 5% annually over the past ten years; this is 3% faster than its imports. Furthermore, the country’s trade surplus increased by more than 100% between 2008 and 2018. While the contribution of transport declined, travel and other business services increased.
Additionally, the key sector in the US remains services related to intellectual property, having 16.1% exports share and 10% import share.
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The United Kingdom
Imports services in the United Kingdom saw a 6% increase in 2018, with steady growth in service boosting other services. The UK’s leading sector is business services, which account for up to 29% of the UK’s services exports in 2018. Contrarily, its second-largest traded sector, financial services, lost 6% of its total share between 2008 and 2018. These numbers made the UK the world’s second-largest exporter and fifth-largest importer of commercial services.
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Germany
Germany was the world’s third-largest importer and exporter of commercial services as of 2018 as published by the WTO. All the services categories in the country, excluding personal, cultural, and recreational exports services, recorded massive growth. The services that recorded a robust growth rate include audio-visuals services and other related activities, accounting for 34% of the country’s economy.
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France
France is the fourth-largest trader in export and import commercial services; it has maintained this position for a while. Being the number one destination for international tourist arrivals globally, the country realizes a steady increase in travel earnings.
The earnings saw a decline in 2016 due to terrorist attacks, but they picked up and have continued increasing since then. France is an EU member state, and “other business services” is a key sector representing nearly one-third of the country’s exports.
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China
China has the strongest export growth in the top ten economies and is the fifth-largest exporter of commercial services. The country’s top services are largely computer services, including information and technology services; these exceed the values of transport and travel.
Meanwhile, when it comes to the import of commercial services, China comes second, with a 9.5% share of world commercial service imports. This number is largely due to the high travel expenditure abroad accounting for over half of its services payments.
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The Netherlands
The Netherlands had the third-strongest growth among leading services imports and exports leaders. This growth was mostly due to other business services and charges for intellectual property use.
Between 2008 and 2018, other business services became one of the country’s fastest-growing import sectors. It is also the most important category in imports as well as in exports. When it comes to commercial services, the Netherlands is the sixth-largest service exporter and only a little behind the UK in imports.
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Ireland
Ireland has the second-best exports performance among leading traders, particularly because of the rising exports of computer services. Among service traders, Ireland maintains the seventh position, with computer services forming half of the country’s services exports. IP-related services and other business services constitute the major import services, accounting for about 40% of Ireland’s payments.
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India
India was the eighth-largest exporter and tenth-largest importer of commercial services as of 2018; it still is. The country recorded steady, rapid growth in other business services for three consecutive years. Telecommunications as well as information and computer services also contribute to India’s trading performance positively.
The History of Trade Dominance in the World 1960 – 2020
International trade didn’t start only a few decades ago; it has existed for millennia. Countries have traded using famous trade routes like the Silk Road, transporting goods between China and Europe since the first century. In the 1960s, the US was dominating international trade, experiencing a boom in its economy after post-war. The country’s economic growth was being driven by consumer spending and there was an increase in demand for luxury goods like cards.
Thanks to the rising demand, factories in the US that were essential to war efforts began production in earnest. The then president, John F. Kennedy, signed the Trade Expansion Act into law; the law allowed the US government to negotiate with other countries.
Meanwhile, Europe was also experiencing changes across the ocean, with Britain being the continent’s most important player. In an attempt to recover from the post-war financial burden, European countries began banding to balance power and eliminate hegemony in Europe. The EFTA (European Free Trade Association) was created in 1960, facilitating free trading between the UK, and Austria, among other countries.
Then, a dramatic change in international trade occurred in 1990 when China started emerging as a global trade leader. First, Britain’s global trade dominance sank, with Germany stepping up to the plate. The automobile industry in Germany began expanding, and although Japan exported more cars than Germany did, the latter was still an important trade hub.
Meanwhile, China’s economy was picking up steam all the while, thanks to the Deng Xiaoping-led series of reforms. These reforms encouraged foreign investment, thus boosting international trade and spurring the expansion of free trade zones in China. China’s economy continued throughout the 1990s and it became increasingly important to international trade.
China’s economy grew such that it became a member of the World Trade Organization by the end of the decade. China took the US’s place as the biggest trade partner in the world.
Conclusion
China is the world’s biggest trading partner today, taking over from the United States in 213. The baton of leadership had been in Europe’s hands before it was passed down to the US and then China. China’s economy began growing in 1990; it grew steadily till it overtook the US to become the most important trading hub globally.
As of 2022, the top two leading trading partners in the world are China and the European Union. The United States and Russia are also top players to an extent, while other countries like Brazil and India are still emerging. Meanwhile, China is the largest source of imports for the United States and the European Union, and the European Union is China’s.