Reference News Network August 20 report, according to the South China Morning Post website August 19 report, a new report says that China is accelerating its export focus toward the Global South to reduce dependence on the United States, which may create a "new order in global business."
Analysts from S&P said on August 19 that since 2015, China's exports to the Global South have doubled, and the growth has seen a significant increase after the trade war launched during the first term of U.S. President Trump. In contrast, over the past decade, China's exports to the United States and Western Europe grew by only 28% and 58%, respectively.
Analysts said that the uncertainty caused by U.S. tariffs will continue to push Chinese companies to the Global South.
"The result could be the formation of a new order in global business, with South-South trade becoming the new focus, and Chinese companies becoming the new key players."
According to the report, China's current exports to Global South countries are about $1.6 trillion, more than 50% higher than the total exports to the United States and Western Europe.
Chinese enterprises have also increased their investments in developing countries, especially in manufacturing. The funds flowing into Indonesia, Malaysia, Thailand, and Vietnam, four Southeast Asian trade partners, have rapidly increased over the past decade.
Analysts said: "These investments may continue in the era of tariffs, not only to avoid new tariffs or secure resources, but also to develop end-market and reduce reliance on sales to the United States."
By leveraging the energy transition in South Asia and Southeast Asia, Chinese automakers have quickly expanded their market share. Over the past three years, sales of Chinese automakers in Malaysia have grown more than tenfold, and in Thailand, Indonesia, and the Philippines, sales have more than doubled, while in India and Vietnam, sales have increased by over 50%.
Expansion by China into the Global South is also evident in other industries such as engineering, construction, machinery, equipment, consumer goods, and services.
Analysts said: "The new tariffs imposed by the United States may not be the direct cause, but they are a common catalyst." (Translated by Feng Xue)
Chinese auto companies showcase new technologies at the Road Safety Week event in Bangkok, Thailand (Xinhua News Agency)
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