Recent “Zero Covid” 🦠 policies are a crucial factor contributing to further eroding China’s long-standing dominance of global trade. China is losing more manufacturing and export market share to Asian neighbors in important areas.Let’s Analyze China’s exports to the world based on product categories.
According to information provided to CNBC by the transport economics company MDS Transmodal, China has seen declines in its share of exports across a range of industries, from minerals to office technology, as well as in several important consumer categories, including clothing and accessories, footwear, furniture, and travel goods.
When we examine the specific commodity groupings that China exports, we see that China has been steadily losing market share, with Vietnam among the nations that are becoming more significant on the global stage.
China exports based on product types 2016 – 2022
- Clothing + Accessories ( 🔻 Dropped 4% )
- Furniture ( 🔻 Dropped 9% )
- Footwear ( 🔻 Dropped 7% )
- Travel goods+ handbags ( 🔻 Dropped 13% )
Which country is snatching china’s export market ?
No it is not India which tops the list , Vietnam is snatching the China’s position as world’s factory , in recent years their numbers are growing rapidly in all categories of products.
Vietnam Export from 2016 to 2022
- Furniture (🔼 increased 9% )
- Footwear (🔼 increased 4% )
- Travel goods+ handbags (🔼 increased 4% )
In the years before to Covid, the competition had grown more fierce. With a nearly 360% increase in long-distance trade since 2014, when it began to invest in its marine and manufacturing sectors, Vietnam has wrested the lion’s share of the manufacturing trade from China.
According to MDS Transmodal, Malaysia and Bangladesh have displaced China as the world’s leading supplier of clothes, while Taiwan has experienced a little increase in metal production.
China exports for clothing is now slowing eaten by Bangladesh , Malaysia
- Bangladesh increased by 🔼 2%
- Malaysia increased by 🔼 12%
China export market based on traffic
According to data from the freight tracking company Project44, since the start of the pandemic lockdowns at the beginning of 2021, the total vessel TEU (container) capacity leaving Chinese ports has been declining.
According to Josh Brazil, vice president of supply chain analytics at Project44, the pre-2021 monthly vessel capacity of roughly 11.2 million TEUs decreased to 8.6 million TEUs leaving Chinese ports in September, signifying a 23.2% decline in vessel capacity leaving Chinese ports.
According to ocean bookings monitored by FreightWaves SONAR, shippers’ requests for container transit by ocean carriers have been steadily declining.
China to US cargo ships traffic
Future for China export market
Countries like Vietnam , india and Bangladesh have increased their efforts to build better shipping lanes between west and their countries this will only put pressure on china’s export market , Also Zero covid is here to stay as the Xi Jinping is now selected for next 5 years. this will only increase the pressure.
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