China Is Exporting More Sophisticated Products Despite Trade War

08/04/2021

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Tom Hancock | Bloomberg

The technical level of China’s exports rose through a trade war with the US, according to a new ranking that predicts the Chinese economy will grow faster than India’s over the next decade.

China ranks 16th globally in terms of the complexity of its exports in 2019, moving three places ahead of countries including Ireland since the start of the trade war in 2018, according to a new study by Harvard University’s Growth Lab.

The index measures the variety and technical sophistication of the goods exported by a country as well as the volume of exports. The US ranks 11th between the world’s two largest economies, with a gap of more than half in the past decade.

Tim Cheston, senior research manager at Growth Lab, said the data showed China was able to raise its ranking despite US tariffs by exporting to other regions.

“It was an efficient move by China to diversify its export destinations for electronics to Europe and elsewhere,” he said.

Data covering the coronavirus pandemic is not yet available, but it may have raised the country’s ranking further due to a boom in China’s exports. The 2019 data was updated last week.

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