The Asian giant surpasses Germany as the country from which we buy the most products and services, mainly due to the “collection” of technology
The pandemic of recent years and now the war are changing the game board of world trade. For the first time in records, China is the main importer of goods and services to Spain, displacing first France and now Germany, which has been the largest supplier to date.
The latest data from the Ministry of Industry and Trade with export and import figures for August (Comex) shows that Spain’s purchases in China amounted to 13.2% of the total, an increase of 62% compared to one year past. year. In second place is Germany, with a total weight on imports of 8%, even though it also grew by 19% compared to 2021.
And that if we only consider the data for August, but if we take the data collected for the first eight months of the year as a reference, imports from China also top the ranking. Products purchased in China account for 10.8% of the total (53% more than in the same period of 2021), reaching 32.1 billion euros, while those from Germany remain at 9.3%.
Why the change? Most of the imports from China are technology products, both consumer electronics and the automotive sector, which grew by almost 50% from last year. And the reason behind this may not be a ‘buzz’ in sales of these categories in Spain, but rather that companies are ‘catching on’ these products in the face of potential supply chain disruptions due to the ‘zero covid’ policy.” from China. The problem in recent months has been that China opens and closes its ports and borders depending on the incidence of the virus, making it difficult to purchase products from companies around the world that may be out of stock. For this reason, “as soon as China loosens its grip, imports skyrocket,” explains Raymond Torres, director of the Economic Situation at Funcas.
Nothing to see of the purchases to China with the purchases that the Asian giant is making in our country. They represent only 2% of total exports this year, increasing the trade deficit with this country to 26,976 million euros, 12,000 million more than in the same period last year. This means that almost six out of every ten euros of the total deficit (58%) is due to the gap with China between purchases and sales. To get an idea: Spain sold goods and services to China worth 625 million euros in August, according to Comex data, while purchases totaled 4,900 million, almost eight times more.
On a cumulative level, the difference is also huge: from the 5,100 million euros obtained from sales to China in the months of January through August, to the 32,100 million euros for purchases.
Aside from the strong appeal of purchases from China, the fact that the Asian giant has supplanted the EU in sales is also due to the weakening of European powers as a result of the war and the ensuing energy crisis. Germany, hitherto a major European locomotive, is in a severe economic slowdown and its organizations are already anticipating that the country will slip into recession this year.
Imports have fallen due to the lower purchasing power of citizens and businesses, and exports have also fallen due to restrictions on industrial activity caused by the severe energy crisis, which has reduced the number of products the country can sell abroad.
Antonio Bonet, president of the Spanish Exporters Club, explains to this newspaper that China has been positioning itself for years as Spain’s main trading partner outside the European Union and since 2020 has positioned itself as the second supplier to surpass France. Now, with the outbreak of war, “China has seen an opportunity to fill the gap left by European countries.”
But the consequences can be serious. Bonet assures it could generate greater reliance on the Asian giant as global value chains are reconfigured and both the US and Europe seek to move goods production closer to their countries. Still, on the positive side, Spain could benefit from the lower prices compared to Europe for the products it imports.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
