CHINA Stop Export to US and EU: What next?

 

88,980 views Jul 1, 2024

For the first time, the emerging markets and developing countries now constitute 56.7% of China’s trade volume, surpassing traditional partners such as the US and Europe. For the first time, emerging markets and developing countries now constitute 56.7% of China’s trade volume, surpassing traditional partners such as the US and Europe. This shift marks a significant reorientation in China's trade strategy and economic relationships. Several factors contribute to this trend.

1. Firstly, China's participation in the Regional Comprehensive Economic Partnership (RCEP) has deepened trade ties with countries in the Asia-Pacific region. In 2023, trade between China and the 14 other RCEP member countries reached $1.77 trillion, a 5.3% increase compared to the period before the agreement took effect in 2021.
   
2. Furthermore, China's focus on Free Trade Agreements (FTAs) with countries aligned with its Belt and Road Initiative (BRI) has expanded its trade network to include 154 countries, predominantly in Asia, Africa, and Latin America. This network covered almost 40% of China’s exports, amounting to approximately $1.3 trillion in trade.

Furthermore, China's focus on Free Trade Agreements (FTAs) with countries aligned with its Belt and Road Initiative (BRI) has expanded its trade network to include 154 countries, predominantly in Asia, Africa, and Latin America. This network covered almost 40% of China’s exports, amounting to approximately $1.3 trillion in trade. The strategic shift towards emerging markets is also reflected in specific sectors. For instance, China has become the world’s largest car exporter, with a significant surge in automotive exports driven by markets like Russia. In 2023, China exported 840,000 vehicles to Russia alone, filling the gap left by European and Japanese manufacturers due to geopolitical tensions. The increasing integration of G20 emerging markets into global value chains has also played a crucial role. These markets have doubled their share of world trade and foreign direct investment since China's accession to the World Trade Organization in 2001. As these economies grow, they generate significant economic spillovers, influencing global trade patterns and enhancing their economic influence.

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