Is China'S Export Difficulties Caused By The Crisis In The US And Europe?

A few years ago, some chain stores and supermarkets in the United States and China product It has an absolute advantage, but now, there are more and more non Chinese products. Why on earth are Chinese products once popular in western society no longer favored? There are factors of the US financial crisis and the European debt crisis, but it is mainly the competitiveness of Chinese enterprises and Chinese products that need to find the reasons from within.

Export is an important pole of China's economic growth, but after the financial crisis, China's import and export trade surplus has declined year by year, and the contribution of exports to economic growth has begun to weaken. Net exports of goods and services in the first three quarters of this year reduced GDP growth by 0.1 percentage points. Today, the U.S. economy has not improved, the European debt crisis is still spreading, and the surrounding environment has not improved significantly. All parties expect China's exports next year Growth rate Will fall back.

Why on earth are Chinese products that were once popular in western society no longer favored? Mainstream views in China influence China exit It is due to the decline of consumption in the western market and the decrease of orders. Such a view basically conforms to the traditional thinking set of some Chinese people, but such thinking does not fully reflect the objective reality.

More and more non Chinese products

The China Federation of Logistics and Purchasing (CFLP) released that the purchasing managers' index (PMI) of China's manufacturing industry in November was 49%, down 1.4 percentage points from 50.4% in October. Particularly noteworthy is that this is the first time that the official manufacturing PMI index has fallen below the threshold of 50% since March 2009. It is worth noting that both the index of new orders and the index of new export orders reflecting demand are weak: the index of new orders is 51.1%, unchanged from the previous month. Previously, the index fell from a high of 55.2% in March to 50.8% in June, and rose slightly to 51.1% in July; The index of new export orders fell sharply by 2.1 percentage points to 48.3%, the fifth consecutive month, and it was the first time that the index fell below 50% since May 2009. At the Canton Fair, which ended not long ago, European and American buyers waited and inquired more, and the actual turnover dropped by 19% and 24% respectively.

It is generally believed that the global financial crisis has caused the western society to compress consumption, resulting in a depressed market and affecting China's exports. But the fact is not so simple. The data shows that US imports increased by 23% on average last year, but China's steel exports to the US only increased by 4.4%; Toys and game consoles only increased by 7.7%; Clothing increased by 18.1%. A few years ago, Chinese products dominated some chain stores and supermarkets in the United States, but now there are more and more non Chinese products. From nail clippers to televisions, products from other countries began to enter the US market on a large scale.

Asian countries strive to occupy the US market

Other Asian countries have increased their exports to the United States by a much larger proportion than China. Chinese shoes were basically in a monopoly position in the US market. Last year, Indonesia delivered more than 2.1 billion dollars of shoes to the United States, an increase of 42%. In the first seven months of this year, Bangladesh's textile exports to the United States increased by 43% to $18 billion. Most of the products of American NIKE were processed in China in the past. Since 2009, 51% of the products of this brand have been processed in Vietnam. China's export orders to the United States have decreased, while the export of other Asian countries has increased. In a sense, it has swallowed up the international market of Chinese enterprises.

There are more and more non Chinese products in the US market, and there are naturally many factors. Chinese economists usually look for reasons for the weakening of the exchange rate and the US market, but this is not the whole problem. After the exchange rate reform in 2005, the RMB appreciated by nearly 20%, affecting the price of export products by only 2.5%. Over the years, the quality of Chinese products has been unstable, which has a negative impact on China's overall product exports.

Among the top 10 world news in 2007, the recall of Chinese export products ranked No. 5, ahead of the news of the US presidential election, according to the Associated Press. A series of Chinese export products were recalled, including lead toys, faulty car tires, and toxic toothpaste and food.

Wal Mart, a large supermarket with China as its main purchasing place, has placed US $11 billion orders in India since 2009, and will gradually increase India's procurement by 30%. Wal Mart once sold 70% of its goods due to Chinese factors. However, considering trade disputes, increased costs, consumer choices and other factors, Wal Mart began to increase the number of goods not made in China and go to different countries to produce and purchase.

You can't find the reason from the outside alone

It can be seen from this that the decline of China's export orders to Western countries is naturally due to the U.S. financial crisis and the European debt crisis, but it is mainly the competitiveness of Chinese enterprises and Chinese products, which needs to find the reasons from within. China's opening up is facing a complicated external environment, which requires such full preparation; The reform is to improve their competitiveness to adapt to such an environment and respond to changes. What's more, sometimes the external environment is not bad and has no great influence. What's worse is that China itself is not perfect, and there are also definitions and conclusions that are not investigated and studied.

We should first look for the reasons from the outside, and solve the problem with the right medicine. We need a rational, objective and comprehensive analysis of the reasons for the reduction of export orders, so that we can make accurate decisions and respond to the unstable international consumer market. We should change the traditional thinking pattern and emphasize external causes from ourselves rather than too much, which may enable China in the transition period to find better solutions to problems.