China continues to hold its position as the center of global manufacturing value chains, according to a recent report released by the Boao Forum for Asia. The “Asian Economic Outlook and Integration Progress Annual Report” highlights that since 2017, global trade in intermediate goods has relied more on China than on North America.
In 2023, the world’s dependence on China for intermediate goods stood at 16%, edging out North America’s 15%, the report states. This signifies China’s crucial role in supplying essential components that drive manufacturing industries worldwide.
“The trade frictions initiated by the United States in 2018 have not boosted its standing in global manufacturing value chains. Instead, these tensions have widened the gap between the U.S. and China regarding their importance in global manufacturing value chains,” the report notes.
Despite some shifts in trade patterns since 2021, with certain goods moving away from China, the country has maintained its dominant position in global value chains. Notably, reliance on China for technology-intensive products has even increased, underscoring its pivotal role in advanced manufacturing sectors.
By 2023, China remained a leader in 20 out of the world’s 22 most traded intermediate goods, demonstrating its sustained advantages in global supply chains. This leadership reflects China’s robust manufacturing capabilities and its integral part in international trade networks.
The report’s findings emphasize China’s ongoing influence in the global economy, particularly in manufacturing and trade of intermediate goods. As global supply chains continue to evolve, China’s role appears steadfast, shaping the dynamics of international commerce.
