Exports face challenges, and new opportunities

In August, China's exports grew 7.1 percent year-on-year in terms of US dollars, lower than expected. Does this mean the driving forces supporting China's better-than-expected export performance over the past two years have changed? As developed economies increase interest rates and overseas demand for Chinese products gradually declines, how will China's exports perform going forward?

There are two basic ways a nation expands its exports. One is the growth of demand, and the other is the increase of the competitiveness of its products and services.

The former is a "demand effect", that is, every country's exports will benefit from the expansion of global demand. The latter is a "share effect", that is, some products will gain more market share with the continuous improvement of their export competitiveness.