Survey shows separating from China is impossible

(MENAFN) A recent report by Allianz Trade, an international insurance company, suggests that achieving complete economic decoupling from China would pose significant challenges, if not prove impossible. The report highlights China's continued importance as a critical supplier for much of the world and underscores the complexities of global trade dynamics.

Conducted through a survey of over 3,000 companies across China, France, Germany, Italy, Poland, Spain, the United Kingdom, and the United States, the research explores the outlook for global trade in 2024. Findings reveal varying degrees of import dependency on China, with the United States, United Kingdom, and France identified as among the most exposed economies. Notably, nearly half of United States imports from China are deemed critical dependencies.

Despite discussions surrounding decoupling and diversification strategies away from China, the report notes a lack of evidence indicating a complete severance of ties. In fact, over one-third of respondents express intentions to expand their presence in China, signaling ongoing engagement with the Chinese market.

While there is talk of reducing reliance on China, Allianz Trade suggests that there may be inherent limitations to the extent to which such diversification efforts can be realized. European countries, in particular, maintain a positive outlook on their prospects in China, with a significant percentage of companies from Germany, Spain, and France planning to increase their footprint in the country. This contrasts with a lower proportion of United States firms expressing similar intentions.

The findings underscore the nuanced perspectives among global businesses regarding their relationships with China and highlight the challenges associated with navigating the complexities of international trade in an interconnected global economy.



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