China Manufacturers Face Fall In Demand,China Export Fall

China Manufacturers Face Fall In Demand, China Export Fall

According to the latest news from the article and other Chinese website, China is the world’s largest Christmas supplies processing country. Christmas comes in December and September is golden season for receiving Christmas orders and production processes. However the orders received in this September decrease dramatically, comparing last year.

One of my hometown Shantou customs officers Meng Yang said that ceramic industry market is weak now.In fact, there are other industries like cloth and toy industry, the demand is falling. A chairman in a cloth company said that this year is the worst year since he has done the cloth business for decades.

What’s the consequence when the exporting demand fall? As we know, China is a export-braised country. Especially Pearl River Delta Area in the south of China, the big cities focus on the manufacture industry. When the demand falls, the manufacture factories produce less with a drop in orders from foreign country. The manufacture has less profit when the supplying becomes less. The factory has to cut the number of the workers to keep operating. Workers lose job and life become difficult. Who else will be affected? The answer is everyone. When the worker has not enough money, the demand of cloth and other spending will fall. The supply of food and other industries will be affected by the falling demand. The economic will slow down, even though trade is the partial of the economy. The second consequence is that China is trying to improve and transfer the manufacturing model. So what should China do to improve and transfer the manufacturing model?

The first thing we need to solve is that Why China export demand fall? Is the price of commodity going up? Is there any countries provide lower price? Is the price of labor going up, in turn, is the wages becoming higher? Or else?

The main reason of the fall in demand the China manufactures face is in the anaemic global demand. The EU, the US and Japan are three of China’s four biggest trading partners. So according to the weakness in consumer demand in Europe and the US delay orders and extend payment terms, now the manufactures are stressful. And the land conflict between China and Japan also effect the export and the import.

Where did the orders go? Over past couple of years, western retailers move orders to south-east Asia and Bangladesh. Why they choose these countries? Because less cost and more profit is the main purpose of the businessman.

 

Now there is the double-digit Chinese wage inflation in labor-intensive industry. As I think, the manufacture technology in China is higher than south-east Asia and Bangladesh, the price of labor is higher than these countries and the price of land also goes up in China, so the cost of product goes up. Foreign companies turn to find the lower cost countries.

 

In conlusion, this embrassing situation push China to transform the developmental pattern. However China is still the largest exporting country,and now China is going to improve the labor-intensive industry into advanced technology manufacture industry.

 http://www.ft.com/cms/s/0/77c8fd0a-f255-11e1-bba3-00144feabdc0.html#ixzz278WRf000