3min snip

Pekingology cover image

Overcapacity

Pekingology

INSIGHT

Shifting Dynamics in Trade Relations with China

Several fundamental shifts influence China's trade relations with developed countries:

  • Ascension in the value chain: Developed countries are less willing to absorb Chinese exports in high-value, technologically complex sectors like cars and aviation, compared to traditional sectors like textiles.
  • Weakening trade reciprocity: China's demand has softened post-COVID, while its exports remain robust due to supply-side stimulus, leading developed countries to perceive a worsening trade deal.
  • Collapse of political liberalization bargain: The implicit agreement of economic exchange for political liberalization is no longer believed, removing the political justification for powering China's economic and technological growth through Western markets.
  • European concerns: Europe fears deindustrialization of its auto industry, a crucial economic backbone, exacerbated by high energy prices and wages, leading to potential trade conflicts with China.
00:00

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode