The immediate impact of any trade war between the US and China would be worse for Beijing, according to a new analysis of multinational companies’ exposure to the Chinese market.
Nor would the export sectors of the US and other major developed countries be significantly affected by an economic slowdown in China, says a report by The Conference Board drawing on export data.
The New York-based corporate think tank found that US and EU value-added exports to China were equivalent to 0.7 per cent and 1.6 per cent respectively of national economic outputs. Even for neighbouring Japan, the figure was just 2.1 per cent.
China’s value-added exports to the US, by contrast, were equivalent to roughly 3 per cent of its gross domestic product, suggesting that Beijing has more to lose in any trade showdown with the Trump administration.