China Watch Blog has learnt that Chinese exporters are still feeling the squeeze from a lack of orders since the global financial crisis in mid-2008, and today some of them are turning to the Latin America and Southeast Asia market for new business.
As the world’s largest exporter of sodium hydrosulfite, widely used for textile dying and pulp bleaching, Zhongcheng exports products mainly to the United States, the European Union and Japan. In 2010, its exports amounted to 85,000 tons worth $90 million.
But because the recovery of these developed economies remains slow and uncertain, the exports situation is “deteriorating”.
“The second quarter was the worst that we have ever experienced since 2008, even worse than the last quarter of 2008,” said Matthew Yang, a sales executive at a chemicals company.
About 45 percent of Zhongcheng’s exports go to the US. The company accounts for 50 percent of US imports of sodium hydrosulfite.
Now there are few signs that things will get better in the coming months. “We have to expand our overseas sales network to developing nations,” said Yang.
Zhongcheng is only one of tens of thousands of Chinese manufacturers and exporters that have suffered from the uncertain global economic recovery and the worsening business environment both at home and abroad.
According to the General Administration of Customs, from January to June, China’s exports grew by 24 percent from a year earlier to $874.3 billion, compared with 35.2 percent during the same period of 2010.
China’s year-on-year export growth has been declining month-by-month during the first half, dropping to 17.9 percent in June from 37.7 percent in January.
“Although there is still double-digit growth for China’s exports, the situation for its exporters is getting worse,” said Zhang Ji, direct general of the Ministry of Commerce’s Department of Mechanic, Electronic and High-tech Industry.
According to the ministry, China’s exports of machinery and electronic goods increased by 13.8 percent year-on-year in June, down from 35.3 percent for January.
Figures from the National Bureau of Statistics showed China’s net exports contributed a negative 0.7 percentage points to its gross domestic product during the first half of the year.If you think China Watch Blog's information is useful, click on cup of coffee on left hand side and make a small contribution via PayPal