The Intelligence from The Economist Yuan direction: Chinese firms head south
Aug 1, 2024
Tom Lee Devlin, Business editor at The Economist, and Wendell Stevenson, correspondent covering Ukraine, dive into the shifting landscape of Chinese businesses as they expand into the global south to combat slowing domestic demand. They discuss the repercussions of the ongoing war in Ukraine, particularly its devastating impact on energy infrastructure. The conversation also lightens up with an entertaining examination of kebabs as a symbol of cultural diversity, showcasing how food reflects broader societal changes.
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China's Slowing Growth
- China's economic growth has slowed due to weak domestic demand and a property downturn.
- This has led to falling factory output and pressure on export-oriented businesses.
Shift to the Global South
- Chinese companies are increasingly looking to the global south for new markets.
- They have quadrupled their sales in these regions since 2016, outpacing Western firms.
Examples of Chinese Products in the Global South
- Transsion sells half of Africa's smartphones, and Mindray leads in Latin American patient monitoring systems.
- Chinese cars are gaining popularity in Thailand, and wind turbines are being sold to Uzbekistan.