China Trade

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According to an economic survey published by the Organization for Economic Cooperation and Development (OECD) in 2005, Chinese exports grew at an average rate of 6% since the mid-1980s. Although China’s export growth was affected by a global slowdown, the country overtook the US to become the world’s second largest exporter by end-2007. The OECD had predicted that China would become the world’s largest exporter by 2010.


According to an economic survey published by the Organization for Economic Cooperation and Development (OECD) in 2005, Chinese exports grew at an average rate of 6% since the mid-1980s. Although China’s export growth was affected by a global slowdown, the country overtook the US to become the world’s second largest exporter by end-2007. The OECD had predicted that China would become the world’s largest exporter by 2010.

China Trade: Contribution to the Economy

In the nineteenth century, the contribution of China to the global economy was negligible, despite the country’s abundant resources. In the 1970s, the Chinese government started reforming its economic policies and adopted market socialism. This led to an upsurge in the growth of the country’s private sector, resulting in China becoming a major player in the international market. The impact of the liberalization of Chinese trade and economic policies is exhibited in the following statistics:
  • Measured using Purchasing Power Parity (PPP), China’s GDP reached $7.8 trillion in 2008, making it the third largest economy after US and Japan.
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  • China is a strong emerging economy, with 11.4% GDP growth in 2007 and 9% in 2008.
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  • The country’s global trade surged past $2.4 trillion in 2008.

China Trade: Exports

China’s total exports stood at $1.4 trillion (f.o.b.) in 2008. The exports vary from electronic gadgets to jewelry. China’s trade thrives on the export of:
  • Home appliances

  • Kitchen wares

  • Sea food and other food products

  • Shoes

  • Clothes

  • Toys

  • Bags
Some export-related facts on China are:
  • China’s customs valuation procedure for exporting goods is in tandem with the WTO Customs Valuation Agreement.

  • Export duty is charged based on the transaction value of the goods.

  • Chinese manufacturers need to acquire a China Compulsory Certification (CCC) before they get the license to export goods.
The key countries for Chinese exports in 2007 were:
  • The US – 19.1%

  • Hong Kong – 15.1%

  • Japan – 8.4%

  • South Korea – 4.6%

  • Germany – 4%

China Trade: Imports

The top five imports from China and their value in 2006:
  • Electrical machinery – $174.8 billion

  • Petroleum and related products – $84.1 billion

  • Professional and scientific instruments – $48.6 billion

  • Metalliferous ores and scrap – $44.0 billion

  • Office machines and data processing equipment – $40.7 billion
Other facts pertaining to Chinese imports are:
  • Import of chemicals used for making weapons is restricted. Importers require a license for ozone depleting materials and toxic drugs.

  • Automatic import licensing is offered for poultry, wine, copper, oils and fertilizers.

China Trade: Ports

Some important ports in China are:
  • The Port of Shanghai

  • Qingdao Port

  • Ningbo Port

  • Dalian Port

  • Lianyun Port
Importers and exporters of motor vehicle accessories and toys need to meet the certification and marking requirements specified in the China Compulsory Certification (CCC) system.

 

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