After the U.S. imposed high tariffs, China has quickly redirected its decreased exports towards third-party markets, indicating a fundamental change in its export approach. As this realignment seems poised to become a medium- to long-term plan, specialists highlight the importance for South Korea—whose export markets intersect with China’s—to review its reaction tactics.
As stated in the report titled “Analysis and Implications of Changes in Chinese Export Destinations Following U.S. Tariff Impositions,” released on the 15th by the Korea Trade Association’s Institute for International Trade, China’s exports to the United States declined by 17.7% year-on-year between January and October this year. Nevertheless, its overall exports worldwide rose by 5.3% during the same timeframe, compensating for the decline via third-party markets including ASEAN, the European Union (EU), India, and Africa.
China’s export diversification was particularly focused on certain areas. Out of the $231.8 billion rise in its third-country exports this year, ASEAN made up the biggest portion at 29.2% ($67.7 billion), followed by Africa (16.1%), the EU (14.1%), and India (5.3%). In terms of product categories, wireless communication equipment, computers, and passenger vehicles experienced notable growth in ASEAN; batteries in the EU; passenger cars in Africa; and wireless communication devices in India.
The report concluded that this trend indicates a fundamental change in China’s export approach, not just a short-term way around tariffs. Huh Seol-bi, a researcher from the Korea Trade Association, said, “In the strategic markets where China is focusing its export transitions, South Korea needs to boost its competitiveness by adopting technology- and quality-driven high-value strategies, and actively gain an edge in less competitive niche areas by expanding its product range.”
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