China’s solution to the above is: increase its exports, said Bruno Fernandes, Head of Macroeconomic Research at Coface.
But the above represents a significant challenge for the Asian country, since given the significant increase in its participation in other markets, some have already begun to impose protectionist measures against some products, such as the issue of tariffs.
In its export strategy, in recent years China has been giving greater weight to three “new” products: solar panels, electric vehicles and lithium batteries.
“China exported furniture, clothing and appliances to the rest of the world. I think in recent years there was not such high growth, because now what they want is to invest a lot in high value-added industries,” explained the specialist.
While furniture, clothing and household appliances export growth has stagnated in the last year, electric vehicles and batteries have increased around 100%.
In that sense, Patricia Krause, chief economist for Latin America at Coface, indicated that China’s presence in the region will continue to gain ground.
The six main products that the region buys from China are: machinery and electrical equipment; nuclear reactor boilers and mechanical apparatus; vehicles, auto parts and accessories; iron and Steel; organic chemicals and plastics.
Without a doubt, in several Latin American countries such as Brazil and Mexico, the arrival of Chinese electric cars is taking off.
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