Asia's exports to China plunge as economy stumbles

Companies reshape supply chains to avoid trade war's impact

20190220N China imports (REUTERS)

Construction vehicles at the 2018 China Import and Export Fair in Guangzhou. Exports to the country from the rest of Asia are declining as its economy slows and production shifts elsewhere. © Reuters

KENSAKU IHARA and MARIKO KODAKI, Nikkei staff writers

TAIPEI/TOKYO -- Asian exports to China are contracting as its economic slowdown reverberates throughout the region's supply chains, a trend that is likely to accelerate as companies grapple with the fallout from the trade war between Beijing and Washington.

Many businesses are already starting to relocate production in order to avoid U.S. tariffs on China-made goods. This in turn is sapping Chinese demand for raw materials and components and raising concerns about the potential impact on the Asian economy as a whole.

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