Declining Economy of China Puts a Big Question Mark on Industries

China

The US Census Bureau data shows that China is the third-largest export destination for US commodities.

China is a well-known spot for export business, covering almost half of the country’s industry sectors, and investors. Since past few months, China’s slow growing economy has led to a series of concerns for the economies of 50 countries, which count china as their top destination for export business.

According to economists at UBS, due to sudden decline in China’s economy market, not only it’ll impact the countries, from where the commodities are imported, but also the impact will hit harder to every industry sector than others.

In 2014, China’s flow of imports ascended up to 0.7 per cent. This figure stated the lowest economy growth rates in five years for the country. In terms of growth for specific global industries, four out of nine followed by UBS exported to China than in 2013. Moreover, imports of fuels, hardware, minerals, textiles, and instruments all decreased. Two different industries, plastics, and chemicals have increased imports up to 1 per cent. US manufacturing units were hit comparably hard.

The US Census Bureau data shows that China is the third-largest export destination for US commodities, after the NAFTA partners of Mexico and Canada; with $122 billion heading over the Pacific in 2014. The export trade with China grew 1.9 per cent last year, as per the UBS report. This is above the global average, but below average 9.9 per cent years of years’ growth for the three years of preceding based analysis of Census Bureau information.

According to UBS Global Research, textiles and minerals, and fuels decrease in exports of more than 10 per cent, while in agriculture business, it had twofold-digit growth. UBS noticed that while commodities took the biggest hits, the lulls are starting to reach processed items as well.

The report revealed that with China’s construction business deceleration set to develop this year in a multi-year slowdown. They might notice a longer-term decline in China’s appetite for foreign industrial imports. This is particularly alarming to vehicle and machinery producers, as around 30 per cent of all exports from the US in those industries go to China. Globally, the EU and Germany send about half of their commodities in these industries to China.

Over the initial four months of 2015, exports have slumped by 6.3 per cent from the same period a year ago; however, labor dispute at the West Coast ports contributed to the issues. China’s slowing economy has officially started to reach American manufacturers.

Carrie Ann
Carrie Ann is Editor-in-Chief at Industry Leaders Magazine, based in Las Vegas. Carrie covers technology, trends, marketing, brands, productivity, and leadership. When she isn’t writing she prefers reading. She loves reading books and articles on business, economics, corporate law, luxury products, artificial intelligence, and latest technology. She’s keen on political discussions and shares an undying passion for gadgets. Follow Carrie Ann on Twitter, Facebook

Recent Posts

United to recall furloughed employees as travel recovers

United to recall furloughed employees as travel recovers

The fading of the pandemic and the rollout of vaccines has brought in some good cheer for the floundering air travel industry. More countries have opened up for business and are al
15 hours ago
UK’s Sanne agrees to consider Cinven bid

UK’s Sanne agrees to consider Cinven bid

Sanne, a UK fund administration business that provides alternative asset and corporate services, has agreed to hold talks with private equity firm Cinven over a potential £1.4bn t
1 day ago
Global stocks rise as investors ignore inflations indicators

Global stocks rise as investors ignore inflations indicators

Global stocks rose to an all-time high, with investor showing confidence in a strong economic recovery from coronavirus and the vaccine effect, but the market is still a bit cautio
1 day ago
UK watchdog whacks Amazon with probe for unfair data collection practices

UK watchdog whacks Amazon with probe for unfair data collection practices

The Competition and Markets Authority will focus on whether Amazon, Inc. favors merchants that use its delivery services.
4 days ago
Altice buys 12 percent stake in BT worth £2 billion

Altice buys 12 percent stake in BT worth £2 billion

Altice said it did not intend to make a bid for the British Telecoms company, though the takeover code also does not allow it to make an unsolicited buyout offer for six months wit
4 days ago
G7 countries agree on broad principles of minimum corporate tax deal

G7 countries agree on broad principles of minimum corporate tax deal

The world’s richest nations (G7) reached a landmark accord setting a global minimum corporate tax rate for multinationals. Would it be effective in tackling tax evasion and avoid
4 days ago