View of Shanghai skyline from a container station. Yaorusheng | Moment | Getty Images
Published February 25, 2024
- China is still the leading trading partner for many countries, and the narrative it being delinked from the global economy is overdone, says the ADB.
- China’s trade with its major partners fell in 2023 — its annual exports dipped for the first time in seven years.
- Although there have been parts of overall trade with China that have declined, the country’s engagement and importance in the global value chain has not diminished, said ADB’s chief economist.
China is still a critical trading partner for many countries across the world, and the often-used narrative of the superpower being delinked from the global economy is overdone, says the Manila-headquartered Asian Development Bank.
“China’s still probably the number one trading partner for the majority of countries in the world,” ADB’s Chief Economist Albert Park told CNBC.
Although there have been parts of overall trade with China that have declined, the country’s engagement and importance in the global value chain has not diminished, said Park.
China’s trade with its major partners fell in 2023 — its annual exports dipped for the first time in seven years as demand for Chinese goods fell amid slower global growth. However, the economic powerhouse remains a top trading partner to over 120 countries, and is still the largest trading partner to Japan, South Korea, Taiwan and Vietnam, according to U.S. think tank Wilson Center.
While it may ring true for certain goods or specific countries that are “very aggressively trying to restrict Chinese trade,” on a more global scale the delinking is much less evident, said the economist. He added that even following the trade conflict started by former U.S. President Donald Trump in 2018, China’s importance in the global value chain has not slumped.
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SOURCE: www.cnbc.com
RELATED: US-China economic flashpoints at a glance
FILE PHOTO: U.S. and Chinese flags are set up before a meeting between U.S. Treasury Secretary Janet Yellen and Chinese Vice Premier He Lifeng in Beijing, China, Saturday, July 8, 2023. Mark Schiefelbein/Pool via REUTERS/File Photo
Published February 25, 2024
WASHINGTON, United States — From a trade imbalance to technological competition, a host of economic flashpoints are boosting tensions between Washington and Beijing — and these are among areas in which both Republicans and Democrats can agree.
What’s behind these concerns?
American debt
Republicans in particular are worried about this issue, concerned that China holds too much American debt.
The fear is that Beijing could use this to pressure Washington by threatening to resell its bonds, bringing down the value of holdings.
While the American debt exceeds $34 trillion, only around $8 trillion is held abroad.
China is a key holder of US debt, accounting for $816 billion and just over $1 trillion when Hong Kong is included, according to Treasury Department figures.
But it is the second biggest foreign holder behind Japan — which holds $1.1 trillion — and ahead of Britain.
Tech race
US President Joe Biden has focused on tech, noting its importance to ensuring national security.
Be it in semiconductors, artificial intelligence or electric vehicles, Washington is seeking to stay ahead or catch up with Beijing in various areas — including to prevent advanced tools from falling into the hands of the Chinese military.
A major target during former president Donald Trump’s term was telecoms giant Huawei, which the United States sought to keep out of its 5G networks and those of allies.
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SOURCE: www.business.inquirer.net
