(Yicai Global) Dec. 15 -- Chinese exporters are shifting focus away from the US, where trade volumes are contracting, and turning instead to emerging markets such as Southeast Asia, aided by a new trade pact and the Belt and Road Initiative, a strategy which boosts trade and investment along the corridor of nations that line the old Silk Road.

China’s trade with members of the Association of Southeast Asian Nations started to noticeably overtake that with the US in the second half, according to China customs data. The gap between growth rates to the two regions widened to 16.4 percentage points in the first 11 months.

Sea freight from Asia to the US tumbled 9 percent in October from a year earlier and 3 percent in September, according to statistics from the Japan Maritime Center. There was a big drop in goods out of China, and the source of US exports is now shifting from China to Southeast Asia. Although, many China-made products are exported to the US from Southeast Asia.

Yet trade with ASEAN nations has been expanding quickly largely thanks to the preferential tariffs offered through the Regional Comprehensive Partnership, which is the world’s largest trade pact and came into effect earlier this year. For instance, China has been lifting restrictions on fruit imports from Southeast Asia one after another, from banana to coconuts, mangos to mangosteens.

But it is trade with nations along the Belt and Road Initiative route that is growing the fastest, surging 20.4 percent between January and November from a year earlier to CNY12.5 trillion (USD1.8 trillion), more than that with China’s largest foreign trade partner ASEAN.

Jiangsu Changjiang Paper, which makes stationery, is looking at tapping markets in countries covered by the Belt and Road Initiative and the Regional Comprehensive Economic Partnership, and expand its export business, General Manager Gu Li told Yicai Global. Gu was one of a number of businessmen who went to Europe as part of a trade delegation organized by the Suzhou municipal government recently.

Rollmax Shutter Component, which makes roller shutter parts, has just pulled in orders from the UK, Isreal and the United Arab Emirates, General Manager Ding Yandong told Yicai Global. The Ningbo-based firm aims to hang onto its usual markets and also explore other markets worldwide. It will focus on Europe and the Middle East and participate in exhibitions in Vietnam, Malaysia and other countries next year.

Next year marks the 10th anniversary of the Belt and Road Initiative, and China’s foreign trade with countries along the old silk routes will continue to grow, said Wei Jianguo, former Vice Minister Commerce.

Editors: Shi Yi, Kim Taylor