China’s imports weigh more: Hong Kong government

China‘s imports have an increasing weight for that country as well as for the Asian region, highlighted the Government of Hong Kong.

Overall, looking ahead, the shift of global economic gravity from West to East is projected to continue.

According to the Hong Kong government, mainland China serves as a vital node in regional supply chains, and its continued growth should bring positive spillover effects to other regional economies.

Mainland China is the conventional name for the area of ​​China under the effective sovereignty of the People’s Republic of China, excluding the special administrative regions of Hong Kong and Macao, former European colonies, or the island of Taiwan.

World GDP

The emergence of a larger and richer middle class in emerging and developing countries in Asia will also continue to generate greater consumer demand for both goods and services, in line with the same vision.

For example, the OECD’s Bilateral Trade in Goods by Industry and End-use Database shows that among mainland China’s imports, the share of domestic consumer goods rose steadily from 2.4% in 2005 to 6.8% in 2019. , which suggests that the country is gaining importance in final demand.

Overall, the IMF predicted that mainland China’s share of world GDP will rise further, from 17.4% in 2020 to 19.3% in 2025, and that for other emerging and developing Asian economies combined it will rise from 7.0 to 7.7%.

By comparison, the combined share of the United States and the European Union will drop by about two percentage points, to about 41 percent.

By 2025, emerging and developing Asia is expected to contribute around three-fifths of global economic growth.

China’s imports

Relations between China and the United States remained tense during the first quarter.

Specifically on the trade front, the White House Trade Representative (USTR) indicated that the United States did not plan to lift tariffs on imports from China in the near future, but would be open to future trade negotiations.

Economic growth of selected economies

Furthermore, the Dispute Settlement Body of the World Trade Organization (WTO) accepted Hong Kong’s request to establish a panel to consider the dispute raised by Hong Kong regarding the alleged violation of WTO rules by the new US mark of origin requirement for Hong Kong products.

Regarding Brexit, the European Union and the United Kingdom made some progress in promoting their cooperation in financial services, but problems over the implementation of the Northern Ireland Protocol led to new uncertainty.

In 2020, China’s imports were worth $ 2.06 trillion, down from $ 2.07 trillion in 2019.