A number of emerging economies have participated in the expansion of global supply chains. However, the huge scale and growth of China’s economy has had a profound effect. Since joining the World Trade Organisation (WTO) in 2001, China has quickly become the largest exporting nation in the world, with around 13 percent of merchandise exports and 18 per cent of manufacturing exports (figure 4).
Apart from exports, China’s other main growth engine has been its high levels of investment which has contributed to excess capacity in some key sectors such as steel (figure 5). This capacity expansion has had a restraining effect on prices of industrial materials and, in turn, a wide range of manufactured goods.