China’s share of global exports has been hit by its trade dispute with the US which — together with the pandemic, corporate governance demands and the rise of artificial intelligence — is pushing multinational companies to reduce their dependency on the Asian powerhouse, reported the Financial Times.
Last year Chinese exports of 1,200 products accounted for 22% of the world’s exports, 3 percentage points down on the previous year, according to a new study by Baker McKenzie, the law firm, and Silk Road Associates, an economic consultancy. For consumer goods the country’s global market share fell by 4 percentage points to 42%.
Anne Petterd, head of the international commercial and trade practice at Baker McKenzie in Asia Pacific, said that in the wake of the disruption caused by the pandemic, companies were looking to geographically diversify their supply chains, build in more safety layers, and supervise them more strictly.
“Whereas it used to be the consumer goods sector that had to make these fast moves, we are now seeing an unprecedented range of industries starting to do the same,” she said.