2023 has been a challenging year, with a sluggish global economic recovery, rising protectionism, and the ongoing coronavirus pandemic, putting enormous pressure on Asian countries' exports. According to the World Organization (WTO), in the first three quarters of 2023, the total export value of Asian countries fell by 52%, of which South Korea's exports fell by 115%, India and Vietnam also have 9% and 8% respectively.
In such an environment, China has bucked the trend and increased by 06%, and the total export value reached 176 trillion yuan, equivalent to 2$7 trillion, a record high. China has surpassed the United States, Japan and the European Union combined to become the world's largest exporter. How?
Global economic growth is weak. Due to the impact of the new crown epidemic, global economic growth has slowed, demand has been sluggish, consumer confidence is low, and demand for Asian countries' export products has decreased. According to the International Monetary Fund (IMF), global economic growth in 2023 will increase from 3.2 in 20225% slowed down to 30%, well below the 38% average. The IMF's outlook for the future of the global economy** is even bleaker than it was during the 2008 financial crisis and the bursting of the dot-com bubble in 2000.
* Protectionism on the rise. In recent years, some countries have adopted protectionist policies, such as taxes on foreign goods and import quotas, which have limited the export markets of Asian countries. According to a report by the World Organization (WTO), the number of protectionist policies has increased by 663% since 2008. The share of global** GDP has also stagnated, peaking in 2008 and remaining flat. In particular, the United States has put forward a policy of reshoring manufacturing in recent years, calling on American companies to relocate from overseas to increase employment in their own countries and improve the economic situation in the United States. This has created new challenges for the exports of Asian countries.
Emerging industries are highly competitive. With the progress of science and technology and the development of innovation, emerging industries such as new energy, electronic information, and biotechnology have become a new driving force for the global economy. These industries have high technology content, large market potential, and fierce competition. Asian countries are not competitive in these industries, some are ahead, some are lagging behind, some are being squeezed, and some are being replaced. Changes in these industries have also had a profound impact on the exports of Asian countries.
The competitiveness of enterprises has declined. South Korea's exports mainly rely on traditional industries such as steel, shipbuilding, semiconductors, and automobiles, which are not highly technological, have saturated markets, and have small profit margins, making them vulnerable to competition and substitution from other countries. South Korea's advantages in these industries are gradually being lost, and there is insufficient investment and innovation in emerging industries to form new competitiveness.
According to a report by the Korea ** Association (KITA), in the first three quarters of 2023, South Korea's steel exports fell by 15 percent year-on-year3%, shipbuilding exports fell by 137%, and car exports fell by 124%, semiconductor exports fell by 102%。Among emerging industries such as new energy, electronic information, and biotechnology, South Korea's exports account for only 35%, much lower than China's 128% and 9 percent in Japan7%。
The innovation ability of enterprises is insufficient. The lack of innovation ability of Korean enterprises is mainly manifested in two aspects: first, they are not able to adapt to the external environment, and they are unable to grasp market changes and customer needs in a timely manner, and adjust their products and strategies. Second, the ability to utilize internal resources is not high, and it is unable to effectively integrate and optimize its own technology, talents, funds and other resources to improve its efficiency and quality.
According to the Global Innovation Index (GII), in 2023, South Korea ranked 18th in terms of innovation ability, down 4 places from 2022, behind Asian countries such as China, Japan, and Singapore. South Korea's performance in market insight, business model, organizational innovation, intellectual property, etc. is not ideal.
Lack of corporate social responsibility. South Korea's lack of corporate social responsibility is mainly manifested in two aspects: First, it does not pay attention to the impact and protection of the environment, and cannot meet the increasingly high global green standards and requirements, resulting in the loss of competitiveness of its products in the international market.
Second, they do not pay attention to the treatment and welfare of employees, and cannot attract and retain excellent talents, resulting in a decline in their core competitiveness. According to the ranking of the Global Corporate Social Responsibility Index (CSR), in 2023, South Korea ranked 32nd in CSR, down 6 places from 2022, behind Asian countries such as China, Japan, and India. South Korea's performance in environmental protection, employee rights, consumer satisfaction, etc. is not outstanding.
The competitiveness of enterprises is improved. China's exports no longer rely on low-end labor-intensive products, but have shifted to high-end technology-intensive products, increasing its added value and profit margins. China's investment and innovation in emerging industries have increased substantially, creating a new competitive advantage.
According to the General Administration of Customs of China, in the first three quarters of 2023, China's exports of high-tech products increased by 12 percent year-on-year3%, accounting for 326%, of which, the export of new energy vehicles increased by 287%, exports of electronic information products increased by 164%, exports of biotechnology products increased by 142%。And in traditional industries, China has also maintained its market share by improving quality and efficiency, reducing costs and improving costs.
The innovation ability of enterprises has been enhanced. The enhancement of the innovation ability of Chinese enterprises is mainly manifested in two aspects: first, they have a keen grasp of the external environment, can timely capture market changes and customer needs, and launch products and services that meet the trend of the times and consumer preferences. The second is the effective integration of internal resources, which can effectively use their own technology, talents, funds and other resources to achieve independent innovation and collaborative innovation, and improve their core competitiveness.
According to the Global Innovation Index (GII), in 2023, China ranked 14th in terms of innovation capacity, up two places from 2022, ahead of Asian countries such as South Korea, India, and Thailand. China's performance in R&D investment, patent applications, and transformation of scientific and technological achievements is outstanding.
Corporate Social Responsibility Fulfillment. China's corporate social responsibility is mainly manifested in two aspects: one is to attach importance to and protect the environment, to meet the world's higher and higher green standards and requirements, and to enhance the competitiveness of its products in the international market. The second is the care and respect for employees, which can improve the treatment and welfare of their employees, attract and retain outstanding talents, and enhance their core competitiveness.
According to the ranking of the Global Corporate Social Responsibility Index (CSR), in 2023, China's corporate social responsibility ranked 18th, up 4 places from 2022, surpassing Asian countries such as Japan, Singapore, and Malaysia. China has performed well in energy conservation and emission reduction, employee training, and social welfare.