Economic asymmetry in Dominican-Chinese trade relations poses development challenge, journalist highlights

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 comes with significant challenges, as highlighted in a recent analysis by José Peña Santana for El Nuevo Diario. According to Santana, while China has emerged as one of the Dominican Republic’s main trade partners, this burgeoning relationship is marked by a striking trade imbalance.

Santana points out 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, which poses long-term risks to the country’s economic development. Santana notes that without a strategic approach to bolster exports, the Dominican Republic risks entrenching a lopsided trade relationship, potentially undermining 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 underscores the urgent need for a balanced trade strategy. As of the first half of 2024, Chinese exports to the Dominican Republic reached $2.08 billion, marking a 7.42% increase from the same period in 2023. Conversely, 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 offerings and enhance the competitiveness of its goods in the Chinese market. Santana argues that this can be achieved through a more aggressive trade policy that promotes innovation, quality, and the diversification of Dominican products. Additionally, diplomatic efforts to secure preferential access to the Chinese market could help bridge the trade gap.

Santana concludes by urging policymakers to view the growth in Chinese imports not only as an opportunity but also as a strategic challenge. Addressing this imbalance, he suggests, requires concerted efforts to transform China from a mere supplier into a true strategic partner for the Dominican Republic.