It’s important to observe that, whilst our media generally focuses on the trading relationship between China and the West, there has been a dramatic surge in Chinese exports to the ‘Global South’, which includes:
- Turkey
- India
- Indonesia
- Vietnam
- Thailand
- Malaysia
- Philippines
- Brazil
- Mexico
According to one observer, Chen Feng, “China divides the external export cycle into two sub-cycles: Europe and the United States on one hand, and the Belt and Road/Asia, Africa and Latin America on the other”. Decoupling from the West and expanding influence and trade in emerging markets will have a significant impact for China in so many ways – economic, social and geo-political – and it will also open up new opportunities for globally minded investors.
The impact of this trend is well documented in a recent issue of the Asia Times which makes the point that “half a billion people in neighbouring countries now depend on Chinese technology for communications, data processing and logistics, providing China with a nearly limitless source of young workers for its industries and an ever-expanding export market”.
Some of the more eye-catching statistics highlighted in this article include:
China’s trade with the Global South plus South Korea and Taiwan is now as large as its combined exports to the US and Europe.
Chinese exports to Mexico are now 16% of the country’s total, including investments of US$5.8 billion, as “Chinese companies are moving facilities out of the United States”.
Brazil has received more than half of all Chinese investment in Latin America – around US$66 billion
Turkey’s imports from China have tripled since 2018. China is also Turkey’s largest export market.
India’s consumption of Chinese goods has doubled in two years
China Exports to Global South
By: David Thomas, China Expert, ChinaInvest
