Do you want to export to China?
Export to China – General information
The People’s Republic of China is the second largest economy in the world. The primary language in the country is Mandarin which is spoken by approximately 70% of the population. The population of China is around 1.4 billion people making it the most populous country in world. Nominal gross domestic product (GDP) for 2020 is estimated to be $15,260 trillion with a per capita income of $10,872 which is the 67th highest in the world. The currency is the Yuan and the time zone is UTC+8 Chına standard time.
Export to China – China Economy
Services – 53.9%
Industry manufacturing – 39%
Agriculture – 7.1%
China recorded a very impressive 18.3% economic growth in the first quarter of 2021 (China national bureau of statistics), this is actually the fastest rate of growth recorded in China since records began back in 1993.
Whilst at first glance this is very impressive the growth rate was actually slightly below international economic forecasts which ranged from 18.6% to 19. The growth rate of the first quarter of 2021 was also only 0.6% up from the last quarter of 2020 and has to be taken in the context of a comparison with the first quarter of 2020 when many factories in China were under lockdown and closed.
China also has concerns over weak domestic demand with consumers not spending at the levels that had been anticipated after the effective measures to contain Covid 19. Exports were however up by 38.7% in the first quarter of 2021 compared to 2020.
Export to China- Main imports & exports
Chına main exports by category:
- Electrical machinery and equipment
- Optical and medical equipment
- Articles of iron/steel
- Clothing accessories
China main imports by category:
- Integrated circuits
- Crude oil
- Iron ore
- Petroleum gases
Export to China – Trade Information
China’s main trading partners are United States, Hong Kong, Japan, South Korea, Vietnam, Germany and India.
China is a member of the WTO
Chına has free trade agreements with Australia, New Zealand, Chile Iceland, Pakistan, Singapore, Peru, Switzerland, Hong Kong, Costa Rica, Georgia, Japan, Cambodia, Panama.
Trade volumes for 2019 were:
Total value of exports – 2,499 billion USD
Total value of imports – 2,080 billion USD
China has experienced a sharp rise in imports in recent months, this has largely been caused fast rising commodity prices. Chinese exports on the other hand have risen less than expected with May’s figures showing a 27.9% rise compared to a year earlier. This is down on April’s figure of 32.3% and also less than most forecasts.
There have been outbreaks of Covid19 at some of China’s ports and the disruption this has caused has been a primary cause of the lower than expected growth in exports. It can be expected therefore that this is short term only.
Chinese exporters are grappling with higher raw material and the export of various raw materials is now a major opportunity for exporters to China. Freight costs have also increased for Chinese companies and this combined with a strengthening yuan also diminishes trade competitiveness.
Export to Chına- Additional resources
Ease of doing business ranking – 31st in the world
International dialing code – +86
Main business domain – .cn
Bloomberg has predicted that China will emerge from Covid19 faster than the United States of America. Here is a link to more detailed information on the China economy: https://www.heritage.org/index/country/china
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Export to China