Weekend Long Read: How Factory Offshoring Will Impact China’s Exports
Judging from the U.S.’ import data, in the six months through March, China probably lost 5% of its textile export orders to the U.S. to the 10 member countries of the Association of Southeast Asian Nations (ASEAN), especially Vietnam. When it came to furniture, and mechanical and electrical products, the proportion lost was 7% and 2%, respectively.
The trend of ASEAN eating into China’s share of exports has become pronounced since early this year as China’s supply chains have been disrupted by Covid control measures, which have restricted the movement of people and goods in various parts of the country. In contrast, Vietnam and other ASEAN countries sped up the resumption of production. They filled the gap left by China, especially in the export of clothing and furniture.
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