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High tech exports expected to grow

by on18 March 2014

Asia to stop being a low-cost production hub

Exports of high-tech products are expected to grow over the next 15 years as emerging Asia moves away from being a low-cost production hub for foreign brands and toward developing value-added local products.

Research from HSBC suggests that high-tech goods would make up more than 25 percent of goods traded by 2030 compared to 22 percent in 2013, HSBC said in its latest global trade report, which forecast trade would pick up only slowly in the near term.

The value of global goods trade would rise at an average rate of 8 percent a year from 2014 to 2030, with high-tech goods rising about 9 percent a year. HSBC said much of the future increase in high-tech trade would be driven by internationalization of supply chains, with parts for high-tech products crisscrossing national borders, but Asian firms would also snare market share from Western competitors.

HSBC predicts that by 2030, China would account for more than half the global trade in high-tech goods.

Hong Kong and the United States would remain in second and third place, although with a lower market share, and Korea would displace Singapore as the fourth-biggest exporter of high-tech goods.

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