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Santo Domingo.- The trade relationship between the Dominican Republic and China has grown considerably since the establishment of diplomatic relations on May 1, 2018, but it entails significant challenges, as highlighted in a recent analysis by José Peña Santana for El Nuevo Diario. According to Santana, while China has become one of the Dominican Republic's main trading partners, this burgeoning relationship is marked by a surprising trade imbalance.
Santana notes that Chinese imports to the Dominican Republic have been increasing rapidly, while Dominican exports to China remain stagnant. This disparity has resulted in a growing trade deficit, posing long-term risks to the country's economic development. Santana points out that without a strategic approach to boost exports, the Dominican Republic runs the risk of entrenching an unbalanced trade relationship, which could undermine its economic sovereignty.
Citing data from the Observatory of Economic Complexity (OEC), the National Statistics Office (ONE) and the General Directorate of Customs (DGA), Santana underlines the urgent need for a balanced trade strategy. In the first half of 2024, Chinese exports to the Dominican Republic reached $2,080 million, which represents an increase of 7.42% compared to the same period in 2023. On the contrary, Dominican exports to China decreased by 7.31% , falling from $83.40 million to $77.30 million.
The article emphasizes the need for the Dominican Republic to diversify its export offer and improve the competitiveness of its products in the Chinese market. Santana maintains that this can be achieved through a more aggressive trade policy that promotes innovation, quality and diversification of Dominican products. Additionally, diplomatic efforts to secure preferential access to the Chinese market could help close the trade gap.
Santana concludes by urging policymakers to view the growth of Chinese imports not only as an opportunity but also as a strategic challenge. It suggests that addressing this imbalance requires concerted efforts to transform China from a mere supplier to a true strategic partner for the Dominican Republic.