Governments are rushing to limit the damage
and Busan, a port in South Korea, are not easily confused. The former produces little industrial machinery; the latter falls short on year-round tropical weather. But the two have something in common. They are among the regions of Asia now imperilled by the less-than-impressive reopening of China’s economy, and the prospect of a prolonged slowdown.
Many Asian countries benefited from Chinese growth over the past two decades, becoming entwined with the world’s second-largest economy. Since China is in the midst of a real-estate slump, with property investment down 9% in the first seven months of the year, these countries now face a headache. China is less of a big buyer of their wares than it was. According to data released on September 7th, its imports dropped by 7.3% in the year to August.
In the richer parts of the continent, makers of semiconductor circuits and car parts are nursing losses. South Korean exports to China fell by 20% year on year in August. On September 4th the government pledged fresh support, announcing loans for exporters worth up to 181trn won , in addition to tax breaks and other schemes earlier in the year. Between January and July exports from Taiwan to mainland China and Hong Kong fell by 28% against a year before.
In South-East Asia tourist numbers are yet to return to anything like their pre-covid levels. Thailand received just 1.8m Chinese travellers between January and July, compared with more than 11m in 2019. A new government in Bangkok last week announced it would relax visa rules to encourage Chinese visitors to return. Several countries in the region have tourism industries large enough to affect their overall balance of trade.
Even during an economic slump, not everything moves in the same direction. Thailand’s exporters of durian, a pungent fruit that is inexplicably popular across much of Asia, have been recent winners. In the first seven months of the year, Chinese imports of the fruit have risen by 52%, relative to the same period last year. Thai officials credit new transport links, particularly a train line connecting Laos and China, for the boom. Sadly for the rest of Asia, not everyone is a Thai durian farmer.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Welcome to a new era of Asian commerceHow the continent at the heart of globalisation is reinventing itself
Read more »
Ronaldo's Al-Nassr win Asian Champions League openerCristiano Ronaldo made a winning debut in the Asian Champions League as he captained Al-Nassr to a 2-0 win over Persepolis in Iran on Tuesday evening.
Read more »
Turkmenistan Eyes Role As Central Asian Transit HubTurkmenistan invests in infrastructure, aiming to transition from a resource-dependent nation to a key transit hub, while navigating political and environmental challenges.
Read more »
As America’s influence wanes, Asian economies are integratingHow the continent at the heart of globalisation is reinventing itself
Read more »
As America’s influence in Asia wanes, Asian economies are integratingHow the continent at the heart of globalisation is reinventing itself
Read more »
Asian economies are investing more in the neighbourhoodThe continent’s economies are coming closer together, with profound consequences for the world
Read more »