China's economic slowdown reshapes global trade with new partnerships

China’s ongoing economic slowdown is set to transform its global trade dynamics, particularly with the Global South. 

Ning Leng, an assistant professor at Georgetown University’s McCourt School of Public Policy, shared insights during a U.S. Department of State foreign press briefing on how China’s internal challenges could realign its investment and trade priorities. 

China’s current growth model is losing steam, with slower factory output, consumption, and investment than expected. 

Leng noted that as China’s economy slows, the nation may shift its focus toward regions like Southeast Asia and Latin America. 

“China has reached a critical point where its economic growth model is losing momentum,” she stated, underscoring the need for China to seek new trade and investment opportunities. 

China is likely to export its surplus in construction materials to regions in need of infrastructure development, particularly in the Global South. 

Moreover, its demand for natural resources like lithium and nickel will drive partnerships with resource-rich countries. 

In agriculture, China’s declining arable land increases its dependence on imports of protein and cereals, especially from South America. 

On the geopolitical front, Chinese companies, particularly in sectors like electric vehicles, electronics, and renewable energy, will look to invest internationally, leading to potential competition with Western economies. 

“China will seek stable markets with a robust middle class to sell its products and strengthen its global standing,” Leng explained. 

As China’s real estate sector slows, it is expected to export overcapacity to regions such as Latin America and Southeast Asia. 

Leng emphasised that the Global South, especially Southeast Asia, will remain vital to China’s economic strategy, with Latin America growing in importance.