America is losing ground in Asian trade

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America is losing ground in Asian trade
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A race to gain commercial clout in the world’s most populous and fastest-growing region has kicked off—and it is one that China is quietly winning

dropped by 15% and 5% respectively in the five months to June, compared with the same period in 2022, exports to the Association of South-East Asian Nations grew by 8% over the period. The ten-member bloc is now China’s largest trading partner.has made most progress—harmonising rules of origin for goods exports—matters a lot to the complex supply chain that runs across the world’s biggest manufacturing hub.

That will not be thanks to tariff reductions, which are too puny to matter. A recent World Bank study projects that they will raise local real incomes by only 0.07% by 2035. Instead gains will come in the form of improvements in productivity brought about by fewer trade frictions and more liberal rules of origin. The bank reckons trade betweenThere is still time forto catch up.

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