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The development of China's exports: Is there a decoupling from the EU and the United States?

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  • Brühl, Volker

Abstract

Some observers warn that a high level of economic dependence on China could negatively affect the economic resilience of Western economies and therefore recommend reducing such dependence by gradually decoupling from China. On the other hand, industry leaders emphasise the economic importance of China and warn against any kind of trade conflicts. Against this background, we briefly analyse the development of China's export strategy. We find that the export intensity of the Chinese economy is diminishing and that exports are becoming more diversified overall. In addition, the relative importance of the United States and the European Union as export markets has been reduced, indicating a gradual decoupling of China from Western economies. Conversely, we find that exports to China have become more important, both for the EU and the United States. Although the figures remain at a non-critical level, Europe's export activities could be more diversified as well.

Suggested Citation

  • Brühl, Volker, 2024. "The development of China's exports: Is there a decoupling from the EU and the United States?," CFS Working Paper Series 721, Center for Financial Studies (CFS).
    • Handle: RePEc:zbw:cfswop:298855
    DOI: 10.2139/ssrn.4839076
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    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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