China has been trying to build up domestic markets for the past several years. With the US imposing high tariffs on Chinese goods it stands to reason that they’re not in a position to import from Vietnam, etc. because there will be domestic overproduction.
Is that from a decrease in demand, or an increase in supply from other countries? I'm curious what the price elasticity of demand looks like for Chinese imports.
My interpretation is: it’s domestic overproduction because China isn’t exporting as much to US so it will consume domestically and then not have need for imports from the other SE Asia countries.
Could be, but China's imports from the US where not much (6% of their total) and cannot be easily substituted from SEA countries, as they were mostly importing
a ton of agricultural stuff (soybeans, corn) plus fossils.
I understand 6% of china may be a much higher percentage of, say, Vietnam's export, but I just don't think Vietnam can produce that much more of that, quickly.
China has been trying to build up domestic markets for the past several years. With the US imposing high tariffs on Chinese goods it stands to reason that they’re not in a position to import from Vietnam, etc. because there will be domestic overproduction.
"because there will be domestic overproduction."
Is that from a decrease in demand, or an increase in supply from other countries? I'm curious what the price elasticity of demand looks like for Chinese imports.
My interpretation is: it’s domestic overproduction because China isn’t exporting as much to US so it will consume domestically and then not have need for imports from the other SE Asia countries.
2 replies →
Could be, but China's imports from the US where not much (6% of their total) and cannot be easily substituted from SEA countries, as they were mostly importing a ton of agricultural stuff (soybeans, corn) plus fossils.
I understand 6% of china may be a much higher percentage of, say, Vietnam's export, but I just don't think Vietnam can produce that much more of that, quickly.
https://atlas.hks.harvard.edu/explore/treemap?exporter=count...