China Exports Changes in the Late 1970’s
Before 1980, China exports was not a big component in world trade, but changes in philosophy beginning in 1978 began to make a great deal of change by the late 1980s. China is the fastest growing economy in the world today, and China exports are surpassed by no other country. It is impossible to be involved in the world market without trade with China.
Why China Exports are so Important
It is understandable why the Chinese government wants to continually export more products worldwide. Maintaining growth is dependent on income from other parts of the world. In the last 30 years, China’s growth rate has been 10% on average, and that is attributable to both imports and exports. Chinese businessmen realize that the huge export opportunity is the best way to build their companies.
Selecting Products to Export
Because China is a sovereign nation, it has industries of all types. The person or entity preparing to export goods needs only to establish contacts for the products available to export. There is competition from within the country, which keeps the pricing honest for the recipients of the goods. This mandates that production numbers stay tight for the success of any China exports. World acceptance of China export products continues to grow, creating markets in every sector.
What are the Problems Facing China Exports
The most obvious hardship for any exporter from China is the language and custom differences. The United States is a big player in China exports, but there are many other nations that represent a good market, too. Each country represents a challenge to find the right intermediaries to bridge the gap. Establishing trust between the other entities necessary to facilitate trade is the largest hill to climb for both exporters and importers.
Making Connections for Perspective Clients
Chinese companies who are big players in the export trade employ those with some international language skills to make contacts and seek new business. China exports are expensive to ship, so it is important that each shipment carries enough of a product to cover the freight costs. Either through their intermediaries or by solicitation on their own, Chinese merchants attempt to find brokers who will find buyers in the country they are exporting to.
What are the Major Exports from China?
At one time, China exports were cheap trinkets, and then they moved to textiles. Although textiles still are a large part of exports, China is becoming better noted for high dollar items. Cell phones, computers, and other technology items account for a large dollar percentage of the China export trade. Other top dollar items for export are machinery, automobiles, and equipment, including tractors and maintenance machinery.
Because China is now the largest manufacturer in the world, exports must continually increase to hold that status and provide growth. There are many golden opportunities for those who master the art of sales and exports, and this will remain true as long as China holds the line on product costs.
If you enjoyed reading about Golden Opportunities for China Exports then see our next article about China Trade.
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