China's share of global export value increases from 12.9pc t
Time: 2016-09-23 13:48
CHINA's global export trade value share increase from 12.9 per cent to 14.6 per cent last year, according to International Monetary Fund (IMF) data, reports Bloomberg News.
This startling result came despite expert talk of rising wages, a shrinking workforce and intensifying competition from low cost nations from Vietnam to Mexico.
"All the talk we have heard about China losing its global competitive advantage is nonsense," said AMP Capital Investors analyst Shane Oliver in Sydney.
"This will further fuel increasing trade tensions as already evident in the UK with the Brexit vote and in the US with the support for Trump's populist protectionist platform," Mr Oliver said.
But despite China's rising global export share, its slice of outbound manufactured goods has fallen as services and consumption emerge as the new growth drivers.
Exports are estimated to fall four per cent from a year earlier and imports are seen dropping 5.4 per cent, leaving a trade surplus of US$58.85 billion, according to a survey of economists by Bloomberg News.
The shift into higher value-added products from robots to computers is also pitting China against developed-market competitors from South Korea to Germany.
German Chancellor Angela Merkel recently remarked that China increasingly is turning into an economic rival as it produces higher-value exports.
A key driver of China's export share gains is its move toward more sophisticated assembly, especially in electronics, which eliminates the need to source components from a vast supply chain across Asia, said top HSBC researcher Frederic Neumann in Hong Kong.
That's hurting companies and economies from Singapore to Thailand, Malaysia, Taiwan and South Korea, said Mr Neumann.
Beijing is subsidising higher technology industries including new advanced information technology, robotics, and new energy vehicles under its "Made in China 2025" plan.
More is to come as President Xi Jinping's blueprint envisions global competitiveness within a decade in 10 industries from machine tools and robots to advanced railway equipment and medical devices.
This startling result came despite expert talk of rising wages, a shrinking workforce and intensifying competition from low cost nations from Vietnam to Mexico.
"All the talk we have heard about China losing its global competitive advantage is nonsense," said AMP Capital Investors analyst Shane Oliver in Sydney.
"This will further fuel increasing trade tensions as already evident in the UK with the Brexit vote and in the US with the support for Trump's populist protectionist platform," Mr Oliver said.
But despite China's rising global export share, its slice of outbound manufactured goods has fallen as services and consumption emerge as the new growth drivers.
Exports are estimated to fall four per cent from a year earlier and imports are seen dropping 5.4 per cent, leaving a trade surplus of US$58.85 billion, according to a survey of economists by Bloomberg News.
The shift into higher value-added products from robots to computers is also pitting China against developed-market competitors from South Korea to Germany.
German Chancellor Angela Merkel recently remarked that China increasingly is turning into an economic rival as it produces higher-value exports.
A key driver of China's export share gains is its move toward more sophisticated assembly, especially in electronics, which eliminates the need to source components from a vast supply chain across Asia, said top HSBC researcher Frederic Neumann in Hong Kong.
That's hurting companies and economies from Singapore to Thailand, Malaysia, Taiwan and South Korea, said Mr Neumann.
Beijing is subsidising higher technology industries including new advanced information technology, robotics, and new energy vehicles under its "Made in China 2025" plan.
More is to come as President Xi Jinping's blueprint envisions global competitiveness within a decade in 10 industries from machine tools and robots to advanced railway equipment and medical devices.
