Top China Export
The global economy has plenty of competition when it comes to China export and product costs, partly because China is the leader in both. The China export market has monopolized many products to certain nations because of the quantity they can supply and the low price.
The China export market undoubtedly leads the world in the consumer electronics sector. Big companies like Sony and Apple operate from China as it is one of the countries where they can gain the greatest profit margins, because of their quality manufacturing and the low cost of labor.
China’s Largest Markets
The China export markets’ largest beneficiary is the United States; it is China’s number one trading partner.
Other China export destinations include Japan, South Korea, Hongkong, Germany, United Kingdom, the Netherlands, India, Singapore, and Australia. Each of these countries receives a considerable amount of goods and products from China.
The top Chinese exports include household goods, household furniture, video equipment, toys, sporting goods, computers, computer parts and accessories, peripherals, and more. The reason that China export products are cheaper is not because of lower quality, it is because of the low labor costs. Labor costs are much less than anywhere else in the world.
Global Importance of China Export
The China export market has emerged as one of the leading business sectors in the world. Thousands of Chinese commodities and goods are exported to different parts of the world annually. If you are involved in any aspect of the China export industry whether you’re a customs broker, the owner of a sea vessel, a warehouse supervisor, or a freight forwarder, then business must be fairly good for you despite the existing global economic conditions. The China export industry has been driving the global economy for years and many people have capitalized on this growth, dramatically improving their standard of living. One problem is that their new lifestyle is dependent on continued growth.
China’s Sustained Growth
Due to the high demand for Chinese products worldwide, there has been continued rapid growth of the China Export market. China has emerged as one of the leading suppliers of commodities and goods worldwide and they have continued to expand their international trade reach to all corners of the earth. This international reach has allowed China to enjoy unprecedented increases in growth that have ranged from 8-25% per annum.
New Competition for China Export
However, because of rising costs, inflation and the appreciation of the Chinese currency, some of the China export manufacturers are losing low value product orders to competing nations such as India, Vietnam, and neighboring countries. The production of higher valued items however remains unchanged. The garment industry in China has been hit hard by the constant increases in labor costs, raw materials, and this strengthening Yuan currency. These contributed recently to an increase of about 15 to 25% on the prices of these products. Currently apparel made in Vietnam is about 30% less expensive, and import duties in many countries are less for Vietnam than for the China export market.
The next five years will be an interesting period in the market, it will be interesting to see how the Chinese export markets will manage this competition and maintain their leader status with these low price high quality export items.
If you enjoyed reading about The China Export Industry Dominates Global Trading then see our next article about Import Business.
Tags: China Export