Chinese small manufacturers’ rising exports to Africa help offset plunging sales to US amid trade war
- Some exporters say a sharp uptick in exports to belt and road countries, particularly in Africa, has helped offset declining demand in the US
- Sales are being supported by cheap lending to foreign buyers by Chinese banks and improved transport links, exporters say
Growing optimism is spreading among some small Chinese manufacturers in sectors ranging from car parts to textiles, as a spike in exports to countries involved in the Belt and Road Initiative is starting to offset a portion of lost demand from the United States due to the trade war.
“Take the textile industry as an example, many export-oriented factories in Zhejiang that I know have doubled or even tripled their orders to the African market this year,” said Steve Xie, a textile exporter from the Chinese manufacturing hub, whose own business has seen a 40 per cent increase in orders.
“Every textile factory in Haining and Yiwu city is talking because there have been a particularly large number of African buyers placing orders this year. The increase in orders from Nigeria and Ethiopia is huge.”
Every textile factory in Haining and Yiwu city is talking because there have been a particularly large number of African buyers placing orders this year. The increase in orders from Nigeria and Ethiopia is huge
Africa in particular has emerged as a fast growing market for Chinese goods, thanks in part to easy access to loans from Chinese banks. While orders from European and American buyers are often of higher value, companies were making up for it with quantity, Xie said.
“We were once very worried about the impact of the US trade war on our exports,” the businessman said. “Now, although orders on the whole cannot be said to be completely balanced [with pre-trade war levels], the belt and road market, including the African market, can make up … up to about 70 per cent.”