Datastream
China Displaces U.S. as the EU’s Largest Trade Partner
The Briefing
- In a pandemic year, the U.S. has lost out as the EU’s top trading partner
- The EU trade relationship with China has grown towards €586B ($709B) in 2020, compared to €554B ($671B) with the U.S.
How China Became the Largest EU Trade Partner
Historically, America has long been the EU’s top country to trade with, but in 2020, that trend came to a screeching halt.
A $26.7 billion boost for Chinese imports, in addition to a $5.3 billion increase in EU exports, has resulted in China officially becoming the EU’s largest trade partner.
This data looks at a decade of growing trade between the EU and China.
Year | Imports from China ($B) | Exports to China ($B) | Total Trade Value ($B) |
---|---|---|---|
2020 | 463.9 | 245.1 | 709.1 |
2019 | 437.1 | 239.9 | 677.2 |
2018 | 477.5 | 253.9 | 731.6 |
2017 | 454.2 | 239.0 | 693.3 |
2016 | 426.2 | 205.3 | 631.6 |
2015 | 424.2 | 206.0 | 630.3 |
2014 | 366.0 | 199.2 | 565.3 |
2013 | 338.8 | 179.3 | 518.1 |
2012 | 352.8 | 174.2 | 527.1 |
2011 | 356.7 | 165.0 | 521.8 |
2010 | 343.1 | 137.2 | 480.4 |
Playing Catch Up
Displacing the U.S. as a trade partner serves as yet another reminder that China is playing catch up to America’s economy. In 2020, there was an approximate $5.6 trillion gap in nominal GDP between the two nations. A decade ago, the gap was larger at $9 trillion.
The gap continues to shrink due to the differing growth rates in GDP. Between 2010-2020, U.S. nominal GDP growth was in the 1-2% range. During the same time, China’s GDP growth ranged from a high of 10.6% to a low of 6.1%.
An Economic Love Story
If you’re counting on China to run out of stuff to sell, don’t hold your breath. China is a manufacturing titan, and has become a top trading partner of 128 countries. EU imports from China grew 35% in the last decade, and overall imports were worth around $463 billion in 2020.
The EU buys much more from China than what it sells. Exports valued at $245 billion make up just over half (52%) of what it imports. As a result, the EU has a ballooning trade deficit.
Past Rivals
Challenging the U.S. for the economic throne is hardly a new endeavor. In the post-WWII era, Japan experienced a similar economic trajectory. And at the time, concerns about Japan surpassing America were alive and well. At one point, Japanese equities collectively represented some 46% of global stock market capitalization, and the value of the Imperial Palace in Tokyo was notionally worth more than all the real estate in California.
But eventually things began to subside, and a new challenger in China emerged. Today, China is experiencing similar milestones that hint at a growing economic power. Such as Beijing becoming the top city for global billionaires.
Will the 21st century mimic the 20th? Or will we witness the U.S. fall from the top of the economic food chain?
Where does this data come from?
Source: Statista
Notes: Data published on April 1, 2021
Datastream
AWS: Powering the Internet and Amazon’s Profits
Amazon is best known for its sprawling ecommerce empire, but three-quarters of the company’s profits actually come from cloud computing.

The Briefing
- Cloud computing has become a hugely important element of Amazon’s business
- In 2021, AWS accounted for 13% of Amazon’s revenue, but clocks in nearly three-quarters of their operating profit
AWS: Powering the Internet and Amazon’s Profits
The Amazon growth story has been a remarkable one so far.
On the top line, the company has grown every single year since its inception. Even in going back to 2004, Amazon generated a much more modest $6.9 billion in revenue compared to the massive $469 billion for 2021.
Most of these sales come from their retail and ecommerce operations, which the company has come to be known for. However, on the bottom line, the source of profit paints a completely different picture. That’s because 74% of Amazon’s operating profit comes from Amazon Web Services (AWS).
Here’s a closer look at the financials around Amazon and AWS:
Year | AWS Operating Profit ($B) | Total Operating Profit ($B) | AWS % of Operating Profit | Revenue ($B) |
---|---|---|---|---|
2021 | $18.5 | $24.8 | 74% | $469.8 |
2020 | $13.5 | $22.9 | 59% | $386.1 |
2019 | $9.2 | $14.5 | 63% | $280.5 |
2018 | $7.2 | $12.4 | 58% | $232.8 |
Ultimately, the data suggests that the cloud business has been, and possibly will always remain, a higher margin business and consistent profit center in comparison to ecommerce and the physical distribution of goods.
A Glance at AWS
AWS is Amazon’s cloud computing service that provides the critical infrastructure for an assortment of applications like data storage and networking. With this, they help fuel over a million organizations including businesses like Twitter and Netflix and even both the U.S. and Canadian Federal Governments.
Here are some other notable entities and the monthly payments they’ve made towards AWS:
AWS Customer | Monthly Payments ($M) |
---|---|
Netflix | $19 |
Twitch | $15 |
$13 | |
$11 | |
Turner Broadcasting | $10 |
BBC | $9 |
Baidu | $9 |
ESPN | $8 |
Adobe | $8 |
$7 |
Source: Continho (2020)
Based on these monthly figures from 2020, AWS collects $1.3 billion in sales a year just from these 10 customers, while raking in $62 billion of revenue overall. Moreover, this makes them the leader in the competitive cloud market.
In an industry worth an excess of $180 billion, Amazon’s 33% market share position exceeds both Google and Microsoft (Azure) combined. Their market share also surpasses the bottom six shown on the chart combined, who are formidable tech giants in their own right.
The Future of AWS?
AWS has been a cash cow for years and there have even been rumors of an Amazon split up, where AWS would spin off as its own entity. It’s believed by some that if the cloud segment of the business separates, it will be seen as a pure play on the cloud industry and will be awarded a higher valuation multiple by the market.
One thing is for sure, from the perspective of profits, Amazon could be better be described as a cloud company, with an ecommerce business on the side.
Where does this data come from?
Source: Amazon SEC Filings
Notes: Operating profit is the profit from the business before the deduction of non-operating expenses like interest and taxes.
Datastream
Ranked: These Are 10 of the World’s Least Affordable Housing Markets
An analysis of 90+ major cities reveals which ones are the least affordable housing markets based on their price-to-income ratio.

The Briefing
- For the 12th year in a row, Hong Kong is the world’s least affordable housing market, according to Demographia’s ranking of 92 cities in select countries
- Sydney, Australia moves up one spot from last year’s ranking to take second place
These Are 10 of the World’s Least Affordable Housing Markets
It’s become increasingly difficult for middle-class families to purchase a home over the last few years—and the global pandemic has only made things worse.
According to Demographia’s 2022 Housing Affordability Report, the number of housing markets around the world deemed “severely unaffordable” increased by 60% compared to 2019 (prior to the pandemic).
This graphic looks at some of the least affordable housing markets across the globe, relative to median household income. The report covers 92 different cities in eight nations: Australia, Canada, China, Ireland, New Zealand, Singapore, the United Kingdom, and the United States.
The Least Affordable Housing Markets
Before diving in, it’s worth outlining the methodology used in this report, to help explain what’s classified as a severely unaffordable housing market.
To calculate affordability, a city’s median housing price and divided by its median household income. From there, a city is given a score:
- A score of 5.1 or above is considered severely unaffordable
- 4.1 to 5.0 is considered seriously unaffordable
- 3.1 to 4.0 is considered moderately unaffordable
All the cities on this graphic are classified as severely unaffordable—and, for the 12th year in a row, Hong Kong takes the top spot as the world’s most unaffordable housing market, with a score of 23.2.
Housing Market | Nation | Score |
---|---|---|
Hong Kong | 🇭🇰 Hong Kong (SAR) | 23.2 |
Sydney, NSW | 🇦🇺 Australia | 15.3 |
Vancouver, BC | 🇨🇦 Canada | 13.3 |
San Jose, CA | 🇺🇸 U.S. | 12.6 |
Melbourne, VIC | 🇦🇺 Australia | 12.1 |
Honolulu, HI | 🇺🇸 U.S. | 12.0 |
San Francisco, CA | 🇺🇸 U.S. | 11.8 |
Auckland, AUK | 🇳🇿 New Zealand | 11.2 |
Los Angeles, CA | 🇺🇸 U.S. | 10.7 |
Toronto, ON | 🇨🇦 Canada | 10.5 |
One reason for Hong Kong’s steep housing costs is its lack of supply, partly due to its lack of residential zoning—which only accounts for 7% of the region’s zoned land. For context, 75% of New York City’s land area is dedicated to residential housing.
Sydney moved up one spot this year, making it the second most expensive city to purchase a home on the list, with a score of 15.3. Besides Hong Kong, no other city has scored this high in the last 18 years this report has been released.
There are several theories for Sydney’s soaring housing rates, but industry expert Tom Forrest, CEO of Urban Taskforce Australia, boils it down to one fundamental issue in an interview with Australia Broker—supply isn’t keeping up with demand:
“Housing supply has been consistently not meeting demand in the Greater Sydney and across regional New South Wales…if you have supply consistently not meeting demand then the price will go up. That’s what happened and we’re seeing it in abundance.”Tom Forrest, CEO of Urban Taskforce Australia
The COVID-19 Impact
Middle-income earners were already feeling the squeeze prior to the global pandemic, but COVID-19 only exacerbated housing affordability issues.
As people began to work from home, high-income earners started to look for more spacious housing that wasn’t necessarily in the city center, driving up demand in suburban areas that were relatively affordable prior to the pandemic.
At the same time, supply chain issues and material costs impacted construction, which created a perfect storm that ultimately drove housing prices up.
But with interest rates rising and COVID-19 restrictions easing around the world, some experts are predicting a market cool down this year—at least in some parts of the world.
>>Like this? Then you might like this article: How Much Prime Real Estate Could You Buy for $1M?
Where does this data come from?
Source: Demographia
Details: The affordability score is calculated by taking a city’s median housing price and dividing it by the median household income. Anything over 5.1 is considered severely unaffordable
Notes: Data includes 92 metropolitan markets across eight countries; Australia, Canada, Ireland, Singapore, China, New Zealand, the U.K., and the U.S., as of the third quarter of 2021. Many European countries, along wth Japan, we excluded from the dataset, because information on median income was not readily available.
-
Misc2 weeks ago
Visualizing Which Countries Drink the Most Beer
-
Demographics4 weeks ago
Ranked: The 20 Countries With the Fastest Declining Populations
-
Personal Finance2 weeks ago
Mapped: The Salary You Need to Buy a Home in 50 U.S. Cities
-
Energy3 weeks ago
Visualizing the World’s Largest Oil Producers
-
Energy2 weeks ago
Which Countries Produce the Most Natural Gas?
-
Agriculture4 weeks ago
Timeline: The Domestication of Animals
-
Business3 weeks ago
Ranked: The World’s Largest Container Shipping Companies
-
Misc7 days ago
Brand Loyalty is Declining for Most Luxury Automakers