Traditional statistics of China-EU’s bilateral trade based on total trade volume exaggerate China’s trade gains and lead to enormous pressure of trade protectionism from EU against China. Based on gross trade decomposition framework, this paper remeasures the real bilateral trade volume, trade composition and factor endowment structure of China-EU’s bilateral trade between 2001 and 2011. The results show that: traditional statistics significantly overestimate the bilateral trade balance between China and EU. During the investigation period, China’s export, import and balance of value added trade decreased respectively by an average of 23.41%, 16.29% and 48.81% compared to gross trade. The added value in China’s export to EU is dominated by final goods which are produced by capital and low-skilled labor through assembling activities. With a low profitability, this added value belongs to the downstream of global value chain, but has the potential to rise. In contrast, the added value in EU’s exports to China is mainly intermediate goods which are produced by capital and medium-skilled labor, belonging to the relative upstream of global value chain with a higher profitability.