China Research: Exporters

China has always been one of the biggest product exporters in the world, and in 2009, China surpassed Germany to become the biggest exporting country with an annual exporting rate of 1.12 trillion dollars. According to a professor in Georg August University of Gottingen, China exports many cheap services and products to Western countries, especially the United States. To some extent, Chinese products works as a stabilizing factor to western society because they provide Western consumers with a cheaper product and force Western companies to compete in price while also maintaining quality.

Chinese exporters: which industries are they in?

Products of the mechanical and electrical industry make up a big portion of China’s exports. These include electrical equipment, consumer electronics, heavy machinery, high technology products, among others. These two industries make up about 75% of China’s total exports. Clothing and accessories make up the next largest portion of Chinese exports with more than 10 percent of total exports. Fabrics, yarn and textiles, shoes, furniture, and plastic products together make up the remaining 15%.

Chinese exporters: where are they?

Due to their proximity to the ocean and transportation conveniences, coastal areas are the most popular locations for exporters. Of course, exporters in different coastal areas have different exporting targets. Firms lying around the Bohai Sea(渤海湾), in Tianjin(天津), and in Jiaozhou Bay of the Shandong Peninsula(山东半岛胶州湾) primarily export their products to Korea and Japan. In East China, firms in cities like Suzhou(苏州), Kunshan(昆山), Wuxi(无锡), Wenzhou(温州), Ningbo(宁波), export the majority of their goods to America, Australia, New Zealand and European countries.In Southern China, in the Pearl River delta(珠三角) and Southern Fujian(福建), firms sell their products to the United States, African and South American Countries, and Asian(东盟) countries.

Foreign investors also choose to develop their business in China before start to export. My Simax for instance, is a leading company in high technology based in Shanghai. Its high quality product has met the success in Chinese market and his owner, JX Paulin is now looking at the African market.

Chinese brands: entering the world market

Since China joined the WTO, more and more Chinese companies are trying to establish their own brands and export their products abroad. For example, Haier has become one of the most successful Chinese companies that created a respected brand image in the global market. Its sales volume of major appliances made up 7.8% of 2011 global market and topped the world for three consecutive years. Its global refrigerator, washing machine, cooler and freezer sales also ranked first. China National Heavy Duty Truck Group is also a large exporter of goods. It has now established a partnership with Germany company MAN, the world’s third largest heavy duty truck manufacturer. Also, brands like TCL, Kingston, Huawei and Coolpad are now also trying to expand their market internationally and attract foreign customers. Western consumers are beginning to use more and more Chinese products and regard them as cost-effective. With increasing manufacturing costs in China, it is still unclear as to whether Chinese firms will be able to continue this success.

Daxue Consulting China Research


Picture Source: Haier