• Analytics
  • News and Tools
  • Market News
  • Tech war could have a long-term impact on China's exports - ING
Market News
12.07.2019, 14:46

Tech war could have a long-term impact on China's exports - ING

Iris Pang, the economist for Greater China at ING, notes that between January to June 2019, mechanical and electronic products made up around 55% to 60% of China’s exports, which means the tech war will hurt China’s export significantly.

  • "Post the G20 meeting, Huawei’s CEO said, “very little has materially changed as Chinese tech firms still face quite a few problems in doing business with the US even with the changed US policies” and we tend to agree. But nowadays technology usually has dual-use, which means it can be used both by the military and ordinary people. So, in our view, this apparent relaxation is nothing more than a political gambit.
  • This may also explain why China hasn’t yet increased US agricultural produce imports. This month alone, soybean imports fell by 15%MoM, which implies that China is still yet to import more agricultural products from the US. Moreover, there are other countries blocking Chinese companies from engaging in the 5G infrastructure set up, so we expect this tech war to continue for a while.
  • But all of this means that technology products and parts export from China will diminish after this wave of front running (tariff avoiding) activities."

© 2000-2020. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Feedback
Live Chat E-mail
Up
Choose your language / location