Though China might have replaced Germany as the worlds’ biggest exporter in 2009, but it cannot be considered a “powerful trading nation” according to Vice Commerce Minister Zhong Shan.
It is expected that Chinese exports will grow further in 2010. Zhong did not elaborate further on this. Since the global financial crisis, China’s exports affected to a great extent, falling 18.8% in the first eleven months last year. It is noted that the market share for Chinese products has increased in 2009 because sales from other countries have fallen further. This was stated by Zhong in a forum at University of International Business and Economics in Beijing.
There have been reports of other countries blaming China’s unofficial policy of bringing down the yuan to the dollar in 2008 and making products that are competitive in an artificial sense. China is bound to feel pressure on its Yuan policy but shall be maintaining stability in replication of its government policy. Zhong also said that the growth in exports is essential at this point to raise economic growth and create more jobs in the country.
As an example he stated that the exports of 30 million shirts have benefitted Chineses economy more than exporting one Boeng 747. This was in reference to a debate over support China should offer to labor intensive export industries versus how much it should move up the value chain. By this he meant since exporting 30 million shirts will create jobs for approximately 10,000 people by which their families and 30,000 will have a comfortable life.
China is also pressurized from trading partners to bring balance to its outsized trade surplus. But Zhong particularly mentioned that it does not mean a reduction in exports.
President Obama has told China to import more and export less, thereby save less and spend more. On this Zhong disagrees that China has been exporting too much.
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