 This has produced a manufacturing sector often focused on the export of niche market and luxury products, that if on one side is less capable to compete on the quantity, on the other side is more capable of facing the competition from China and other emerging Asian economies based on lower labour costs, with higher quality products.Italy was the world's 7th largest exporter in 2016.Its closest trade ties are with the other countries of the European Union, with whom it conducts about 59% of its total trade.