China Export Alternatives 🚢

Table of Contents

China Export Alternatives

China’s reliance on its neighboring countries as export markets is being challenged amid a global economic slowdown, as the latest trade data indicates. While exports to the Association of Southeast Asian Nations (ASEAN) have been growing, a decline of 16% in exports to Southeast Asia in May compared to the previous year has had a negative impact on China’s overall exports. Additionally, exports to the United States, China’s largest single-country trading partner, fell by 18% in May. The decline in exports to both the US and Southeast Asia indicates that ASEAN cannot fully compensate for the loss of the US market. The US market offers higher profit margins and represents a single market, unlike the ASEAN bloc, which comprises ten countries. Trade has been a significant driver of China’s economic growth, and while it now accounts for about 18% of the economy compared to the previous 30%, a slowdown in global growth, particularly in the US and Southeast Asia, poses challenges for Chinese exports.

The US economy is expected to enter a recession in the second half of the year, and ASEAN’s GDP growth is forecasted to slow to 4.6% in 2023. China’s monthly export data to some ASEAN countries, such as Vietnam, Singapore, Malaysia, and Thailand, may have been distorted, raising concerns about the region’s contribution to China’s exports. The tense relations between the US and China and the breakdown of the EU-China investment deal have prompted China to bolster trade with developing countries in the Asia Pacific region. China has signed the Regional Comprehensive Economic Partnership (RCEP) with ASEAN and other countries, the largest free trade agreement in the world. China also expressed interest in joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and is actively pursuing other trade agreements, including with Mercosur in Latin America and the Gulf Cooperation Council (GCC). What do you think about China’s exports? And will their reliance cause issues?

Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.