Matrix XD

Matrix XD: China, No. 1 In Exporting

China, No. 1 In ExportingGermany for many years at the top as the number one exporting state in the world. Who does not know the Mercedes luxury cars, hospital equipment and telecommunications Siemens, or sophisticated machines made by other high-tech leadership of Angela Merkel's mother? However, at the end of 2009, the crown was won by China. China also beat the United States as the world's largest car market in 2009 and soon defeated Japan into the country with the second largest economic power in the world.

Previously, China also beat Germany as a country with the third largest economic power in the world in 2007. China not only export objects with large shape such as machinery, but also smaller items such as shirt buttons, needles, and children's toys. Or a pear and citrus, as well as various products and clothing.

With visible and can be seen, from the traditional markets of Cairo, Egypt, to the souvenir market in Australia, all providing the goods from China. It's hard to not find anything made in China in place anywhere on Earth today.

China's exports rose 17.7 percent in December 2009. The increase marks the revival of China's exports after 13 months in a row weakened. Thus the Government of China announced in Beijing on Sunday (10.1.2010).

China exports during the month of December is worth 130.7 billion U.S. dollars. Thus, over the past year, total exports of China reached 1.2 trillion U.S. dollars. Data released last week the German Government has also shown that China since last November is the number one exporting state in the face of this Earth. German exports only reached 1.17 trillion U.S. dollars only.

China is also likely to continue to produce goods that are labor intensive to provide employment for its workers than the production of sophisticated goods that were expensive.

In China there is controversy about whether China should support labor-intensive industries or to increase production of goods with sophisticated and highly valuable.

By exporting 30 million pieces of shirts, can provide economic benefits to China is much higher when compared to export one unit of Boeing 747 aircraft. If China exported 30 million pieces of shirts, they could also create jobs for 10,000 people. With 10,000 workers, means at least there are about 30,000 people, including their families, who can improve their welfare.

China's new status is a significant symbol and reflects the industry's ability to survive and low-cost manufacturing to continue to market their products overseas despite the current slowdown is happening. China exports currently occupies about 40 percent of its gross domestic product.

The increase in exports and the excitement is not China's trade with the risk for China itself. The experts argued that the rise of China's trade impact is likely to bring greater pressure again for China to let its currency strengthen. The strengthening of the currency would make China's products more expensive in export markets.

One of China's trading partners complain is the currency whose value is below market value. With the yuan exchange rate is low, the goods China exports very cheap and have high competitiveness. Yuan exchange rate is pegged to the U.S. dollar since mid-2008 has been a matter of debate that does not end.

China is also expected to increase consumption in the country so as not too much dependent on export markets and investment to trigger economic growth. China has so far refused to change policy on currency exchange rates. Prime Minister Wen Jiabao said last month, China will not allow foreign forces pressing yuan.

The weakening dollar against the euro and other strong currencies weaken the yuan's share in the market. This situation is increasingly making China's goods more attractive and increase China's trade surplus

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Posted By Sutrisno
Created on Monday, January 11, 2010

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