Chinese exports turn to emerging markets, says Caixin – 05/16/2023 – Nelson de Sá

On the cover of the country’s main economic weekly magazine, Caixin, from Beijing, “China’s foreign trade turns to emerging markets and needs space”. The report begins with the port of Qingdao, which opened 38 new routes last year, almost all of them to developing countries.

“A growing proportion of Chinese remittances are destined for emerging markets such as the countries of the Association of Southeast Asian Nations [Asean]Middle East and Latin America”, he describes. With that, Qingdao became the third port, just behind Shanghai and Zhoushan.

Exports to Saudi Arabia jumped 51% in the first quarter. For the United Arab Emirates, 32%. Africa, 37%. Latin America, 11%.

Unlike what goes to the US and Europe, “a large proportion of containers”, for emerging countries, “transport semi-finished articles, used in the manufacture of final goods, and capital goods, including machines and tools used to manufacture consumer products”.

He explains that “many countries are now at a stage of development similar to that of China in the 1980s and 90s”, hence the concentration on semi-finished or capital goods. “In their effort to develop industries, they are not interested in importing finished products.”

“Eastern South America”, in the Atlantic, saw cargo transport prices skyrocket by 80%, on the new routes opened by Maersk, Wan Hai and others.

An analysis on the Guancha portal, from Shanghai, assesses that “China’s current development now depends on endogenous strength, instead of foreign trade, foreign investment and the introduction of technology”. And he claims that this has already been noticed by the United States and others.

IN THE SEA OF JAPAN

Also at Caixin, next month China will start using the Russian port of Vladivostok to transport cargo, in principle, from the northeast of the country to other regions of China itself.

In Guancha’s analysis, it will be “very interesting to see how Japan and South Korea will face it and what impact this will have on regional security”. As it is in the Sea of ​​u200bu200bJapan, Tokyo and Seoul “will play pranks?”. Beijing and Moscow “do naval escort?”.

ON THE OTHER HAND

Still at Caixin, with data released on the day, “slow consumption in the US and Europe affects trade in April”, affecting exports. Asean too. “Meanwhile, three new trading partners, Russia, Africa and the Middle East, started to strengthen China’s exports.”

And urban unemployment in China even dropped by 0.1 point to 5.2%. However, unemployment among young people hit a record and “exceeded 20%”.

ACCEPT THE REALITY

Joe Biden is due to meet the Prime Minister of India, Narendra Modi, next weekend at the G7, in Japan, soon after at the Quad, in Australia, and weeks later at the White House, in the USA, with “red carpet “.

In the face of the effort, Foreign Affairs warned that “New Delhi will not side with Washington against Beijing”, that this is “America’s bad bet on India” (above, right). And the Financial Times that “India will never be America’s ally” and Biden “should accept this reality”.

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