China’s Top 10 Exports in 2013

source: www.gongchang.com

In 2013, China’s top 10 exports accounted for 67.8% of the overall value of its global shipments. Exports from the People’s Republic of China amounted to US$2.2 trillion, up 84% since 2009.

Based on statistics from the International Monetary Fund’s World Economic Outlook Database, China’s total Gross Domestic Product amounted to $13.374 trillion in 2013.

Therefore, exports accounted for about 16.5% of China’s total economic output.

Given China’s population of 1.35 billion people, the total $2.2 trillion in 2013 Chinese exports translates to roughly $1,638 for every person in the country. This compares with a benchmark $2,545 in exports per person for the world’s total exports(assuming an estimated global population of 7,095,217,980 per the CIA World Factbook).

 

China’s Top 10 Exports

The following export product groups represent the highest dollar value in Chinese global shipments during 2012. Also shown is the percentage share each export category represents in terms of China’s overall exports.

  1. Electronic equipment: $561,703,550,000 (25.4% of total exports)
  2. Machinery: $383,310,504,000 (17.3%)
  3. Knit or crochet clothing and accessories: $96,810,372,000 (4.4%)
  4. Furniture, lighting , signs and prefabricated buildings: $86,435,683,000 (3.9%)
  5. Optical, technical and medical apparatus: $74,689,712,000 (3.4%)
  6. Non-knit and non-crochet clothing and accessories: $68,271,919,000 (3.1%)
  7. Plastics: $61,775,281,000 (2.8%)
  8. Vehicles excluding trains and streetcars: $58,588,779,000 (2.7%)
  9. Iron or steel articles: $57,368,576,000 (2.6%)
  10. Footwear: $50,766,207,000 (2.3%)

Some of the industries supporting these exports, such as manufacturing electronic equipment and producing clothing, are labor intensive. This may explain why China’s unemployment rate is 6.4 per cent — compared to the estimated 9 per cent global average.

Please note that the exports listed above are at the 2-digit Harmonized Tariff System code level.

China top leader reaffirms economic reforms

source: www.gongchang.com

Chinese Vice Premier Zhang Gaoli reaffirmed to a group of visiting senior foreign executives and officials on Sunday that the country will introduce market-based interest rates and a market-based exchange rate for the yuan currency.

 

Zhang, speaking at the annual China Development Forum, said China will “introduce a modern and competitive market system with fair and open market rules”. He provided no details.

 

China’s central bank will focus on liberalizing bank deposit rates over the next two years, while loosening its grip on the yuan currency to give greater influence to market forces, a vice governor of the People’s Bank of China said on Saturday.

 

Central bank chief Zhou Xiaochuan said earlier this month deposit rates were likely to be liberalized in one to two years, but government economists and policy advisers told Reuters they believed the central bank was treading cautiously as economic growth slows.

 

The central bank already allows banks to set their own lending rates, but in practice they do not have full freedom because of controls on deposit rates.

 

Zhang added that a key government priority will be fiscal and tax reform, including development of “an open and standardized budget system”, which is crucial as China moves to address issues associated with local government debt and local government finance.

 

China’s local governments are responsible for 85 percent of total government expenditure but collect less than 50 percent of the country’s total revenues, according to statistics compiled by the Asian Development Bank.

 

Zhang also said the government was moving forward with updating its value-added tax, excise and consumption tax.

 

Zhang said that a “fair and unified tax system” was needed.

 

A run of disappointing data showing China’s economy lost steam at the start of 2014, and the country’s first domestic bond default and subsequent media reports of trouble at other companies, have added to pressure in its financial markets.

China’s bio-pharmaceutical output exceeds 2t yuan in 2013

source: www.gongchang.com

The production value of China’s bio-medicine industry amounted to 2.1 trillion yuan ($338.8 billion) in 2013, up about 18 percent year on year, the country’s top economic planner announced on Monday.

Zhang Xiaoqiang, vice director of the National Development and Reform Commission, said the country was accelerating its research and development of new medicines, new types of plants and animals and new material products.

“In 2014 and 2015, China should strive to promote biological development including bio-pharmaceutical, bio-agriculture and bio-energy,” said Zhang at a news briefing ahead of a biological industry national conference.

Yang Shengli, honorary chairman of the Chinese Society of Biotechnology, said that annual growth of the country’s bio-industrial output is expected to surpass 20 percent in three years.

Initiated in 2007, the 8th national conference on biological industry will be held in the coastal municipality of Tianjin from June 18 to 20 focusing on “developing bio-industry to benefit people”.

China moves to boost economic growth

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Source: www.gongchang.com

Recent slowdown in China’s economy has forced policymakers to unveil a series of new moves aimed at boosting growth.

The steps include tax breaks for small businesses, reduced fees for exporters and opening up of railway construction.

China’s economic growth rate has slowed for two quarters in a row and there are concerns that it may slow further.

But the cabinet said the economy was in a reasonable shape and it was pushing for reforms to stabilise growth.

“The economy is still running in a reasonable range,” the cabinet said.

“We must look at now and beyond to let restructuring and reform play an active role in stabilising growth.”

Data released earlier this month showed that China’s economic growth slowed in the April to June period.

The world’s second biggest economy grew by 7.5% compared to the previous year, down from 7.7% in the January to March period.

Its growth has been hurt by slowing demand for Chinese exports from key markets such as the US and Europe.

China 7.2% Growth Would Meet 2014 Goal of ‘About’ 7.5%, Lou Says

Source: www.gongchang.com

China’s Finance Minister Lou Jiwei said that he’d see economic growth of 7.2 percent or 7.3 percent as achieving this year’s target of “about” 7.5 percent.

The key is employment, not the exact level of growth, Lou said at a press briefing in Beijing today as part of the annual meeting of the National People’s Congress, the legislature.

Investors are trying to get a fix on the depth of slowdown that the Communist Party will allow as the pace of expansion eases after decades of export and investment-fueled growth. China hasn’t missed a target for annual growth since 1998, during the Asian financial crisis when Zhu Rongji was premier. That year, the economy expanded 7.8 percent, compared with an 8 percent goal.

While a State Council researcher said yesterday that growth of as low as 7.3 percent would meet this year’s target, Xu Shaoshi, the economic planning agency chief, said the bottom line was was about 7.5 percent, with 10 million jobs created.

4 Things to Do When Working as an International Business Intern

Source:www.gongchang.com

There are a few things you will want to keep in mind as you begin your international business internship. Being chosen for a coveted internship opportunity, it is important to make the most of your internship. Here are a few things to ensure you take full advantage of your international business internship opportunity.

  Make Friends – It is important to make friends, not just in your peer group, but also in other age groups. Don’t just think you are there for yourself and alienate yourself from the other interns. It is important to learn from others and glean as much knowledge about the job as you can.

  Ask for Feedback – Be sure to check in with your supervisor regularly to ask for feedback on your performance. You want to learn what you can do better and what you are doing that others see as good. Asking for feedback shows you are serious about the job and that you want to learn the job and make improvements where you can.

  Figure out how things Work – You will want to ensure that you understand how the company works and the ways of the office in order to best work for the company. Your superiors as well as colleagues will appreciate that you learn the ropes, understand the processes, and make an effort to follow standards and guidelines.

  Be Appreciative – Getting an international business internship, especially one that had a lot of competition for the openings, is an opportunity. Do not forget to thank those that helped you get the position and those that help you keep the position. You want to thank people for the knowledge they share and their help when they provide it. You will be surprised how far a simple thank you can get you.

South Africa’s trade with China surges by 32% in2013

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source: www.gongchang.com

       South Africa’s bilateral trade with China saw a 32-percent increase in 2013 overthe previous year, Trade and Industry Minister Rob Davies said on Wednesday.

  Two-way trade between the two countries increased from 205 billion rand ($19.2 billion) in 2012to 270 billion rand ($25 billion) at the end of 2013, Davies said in a written reply to aparliamentary question.There is indeed scope to expand South Africa’s exports to China in value-added manufacturedproducts, particularly as the Chinese economy continued to register strong growth rates, saidDavies. Chinese investments in South Africa, meanwhile, continued to grow, Davies said.

  Between January 2003 and January (this year), a total of 38 FDI (foreign direct investment)projects were recorded. These projects represent a total capital investment of 13.33 billion rand(about $1.24), which is an average investment of 350.48 million rand ($33 million dollars) perproject. “During the period, a total of 10,992 jobs were created,” he said.

  These investments were spread across the metals; car; communications; financial services; foodand tobacco; chemicals; industrial machinery; construction; engines and turbines; andtransportation sectors, according to Davies.

How to Negotiate with suppliers?

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Source: www.gongchang.com

Once you have decided which suppliers you want to work with, you need to negotiate terms.

Before you start to negotiate, draw up a list of the factors that are most important to you, such as price, delivery schedule or payment terms. Decide what you are – and aren’t – prepared to compromise on.

It’s essential to plan your strategy in writing before beginning negotiations. This will help you set clear goals and work out where you will draw the line and walk away from the deal.

Before you start negotiating, state the aspects of the deal you’re happy with and the points you want to discuss. Ask the supplier to do the same.

Don’t indicate that there are things you’re prepared to concede on or compromise on too early in the negotiations. Instead, use these as bargaining chips, making concessions in return for concessions made by your supplier.

Push the supplier to indicate a starting price and details of any discounts offered early in the negotiation. Never accept the first offer – make a low counter offer in return. The other party is likely to come back with a revised figure. Always ask what else they can include at the given price.

If the price is suspiciously low, ask yourself why. Are the goods of sufficiently high quality? Do they really offer value for money? What will after-sales service be like?

If the price includes features you don’t need, try to lower it by asking to remove those features from the deal.

You can also use your bargaining power to get a good deal. For example, if you’re a big customer of the supplier, you could ask for bulk discounts.

If you squeeze the price too low – perhaps by threatening to walk away from the negotiations – you may end up getting a poor deal. The supplier may have to cut costs elsewhere – in an area such as customer service, which could prove costly to you in the long run.

Set out in writing the key points of any agreement you reach.