Interviews
Six sectors to bear brunt of US trade protection measures
20 Feb '09
2 min read
Under the impact of the financial crisis and the resultant recessionary trends due to which American consumers have cut back on spending, the proportion of Chinese exports to the US declined from 19.1 percent in 2007 to 17.7 percent in 2008, but the US is still the second largest export destination, second only to the European Union.
Trade protectionism forces are rising in the United States and China will undoubtedly bear the brunt. But other then a fully blown trade war between the two countries, small and big trade frictions in some sectors are more likely to occur between China and the United States, which is going to affect exports from those particular sectors.
In comparison to 1997, the proportion of China's industrial exports to the US markets has sharply increased in 2008. The six sectors with large proportionate increases were furniture (48.2%), metal processing products (47.4%), clothing and footwear (41.8%), textiles (33.6 %), non-electronic machinery and equipment (29.2%) and machinery and electronic products (26.5%).
So as per analysts, the first blow of the trade protection measures undertaken by the US is expected to hit hard and first, China's iron and steel, wood products and furniture industries. Metal processing products, clothing and footwear, textiles and rubber products also face great risks in the near future.
This is expected to have a very big impact on these export oriented sectors. In the last few years China has built its economy around exports from various sectors on the back of booming global economic conditions particularly in the US. But this new development is expected to take the wind out from these very sectors.
Trade protectionism forces are rising in the United States and China will undoubtedly bear the brunt. But other then a fully blown trade war between the two countries, small and big trade frictions in some sectors are more likely to occur between China and the United States, which is going to affect exports from those particular sectors.
In comparison to 1997, the proportion of China's industrial exports to the US markets has sharply increased in 2008. The six sectors with large proportionate increases were furniture (48.2%), metal processing products (47.4%), clothing and footwear (41.8%), textiles (33.6 %), non-electronic machinery and equipment (29.2%) and machinery and electronic products (26.5%).
So as per analysts, the first blow of the trade protection measures undertaken by the US is expected to hit hard and first, China's iron and steel, wood products and furniture industries. Metal processing products, clothing and footwear, textiles and rubber products also face great risks in the near future.
This is expected to have a very big impact on these export oriented sectors. In the last few years China has built its economy around exports from various sectors on the back of booming global economic conditions particularly in the US. But this new development is expected to take the wind out from these very sectors.
Fibre2fashion News Desk - China
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