From disease to deteriorating Chinese-American relations, there have been successive blows to the world’s trading system. The latest threat stems from the possibility of another global recession
and downturn to the deterioration in Chinese-American relations, there has been no let-up to the blows battering the world’s trading system. The latest threat stems from the possibility of another global recession. Only two years after the world sank into a covid-induced slump, shipping bosses are again warning of grim prospects for international trade.
Global trade in goods staged an impressive bounceback after the covid-induced downturn of 2020. As a share of world, the value of such trade last year rose to its highest since 2014. But not all trade routes are flourishing. When Mr Trump took his protectionist turn, there was hope that economies in Africa and Latin America might attract some of the business that would have otherwise flowed to China. That has not happened.
The great champions of the past four years are instead in Asia. Exports to America from Bangladesh and Thailand have jumped by more than 80% since 2018; exports fromare up by more than 170% . India and Indonesia have seen their exports grow by more than 60%. All of this means that China’s share of American imports dropped by four percentage points between 2018 and 2022, from 21% to 17%. China used to account for nearly half of Asia’s exports to America; now it accounts for just over a third.
Cultivating new sources of goods or components takes time and investment, so the shift in trade patterns now visible in the data mostly reflects choices firms made well before this year’s geopolitical ructions. Some redistribution of trade would have happened even in placid economic conditions. Rising labour costs in China, for instance, would have made it attractive to move low-value sorts of manufacturing—in textiles and apparel, say—to places like Bangladesh.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
American society is so focused on race that it is blind to classThe end of affirmative action in college admissions could be a chance to build a better system
Read more »
'Let me take you on a tour on the Old Farm Bus'A man has transformed his family farm into a community space - with the help of an American school bus.
Read more »
Europe is learning that you can’t separate trade and politics\n\t\t\tLet our global subject matter experts broaden your perspective with timely insights and opinions you\n\t\t\tcan’t find anywhere else.\n\t\t
Read more »
Report: Teams Inquire About Moving Back NFL Trade DeadlineGeneral managers reportedly are expected to seek a later trade deadline — which could lead to increased transitions — in future seasons.
Read more »
Who left Strictly Come Dancing in week 7?🔴 Spoiler Alert I The sixth celebrity has been eliminated from Strictly Come Dancing, despite wowing with one of their best dances to date.
Read more »