China’s rising importance in global trade

Since the economic reforms in 1990s, China’s role in global trade has increased significantly, surpassing Japan’s peak in the mid-1980s. Armed with inexpensive labour, China assumed the role of the world’s factory after joining the World Trade Organisation. However, as wealth in China has grown, so too has demand for premium goods and services. The country's sophistication in technology and manufacturing is rising too, while the availability of cheap labour continues to fade.  

A major player in global trade

Source: WDI, CICC, FSSA Investment Managers, December 2022