Doing Business in China: What are the Latest Market Trends?

Possessing the second-largest economy and a population of over one billion people, China has one of the busiest markets in the world.  

Despite a recent slowdown, China’s export market has been booming over the past decade or so, which has seen the country experience massive economic growth. A GDP of $9.24 trillion places it second only behind the USA in the world, and its economic actions have strong repercussions on the global markets.

 

For example, the recent slight decline in Chinese exports has seen share prices around the globe drop in reaction. Still, exports play a massive part in the Chinese economy, with $2.28 trillion worth of goods shipped out from the country in 2015, making up 13.8% of global exports. The USA, Hong Kong, EU and nearby nations including Japan, South Korea and Vietnam all make up China’s main trading partners.

Major Chinese Industries

‘Made in China’ can be found on all sorts of goods around the world, from plastic toys to knitted clothing. China has many industries producing products for every corner of the globe.

 

Ceramics

The Chinese ceramics industry was one of the fastest growing markets in 2015, experiencing an 87.4% increase making it worth $26.3 billion. The global ceramics market is predicted to grow by more than 6% up until 2019, with China leading the way. Everything from ornamental ceramics, tea cups and plates, to roof tiles, pipes and other products for industrial use all make up the ceramics market, explaining why it is worth so much.

 

Clothing

With over a billion people to clothe, it’s not too surprising that China’s clothing industry is huge. Knit and crochet clothing is valued slightly higher than non-knit and crochet apparel, and together they make up just over 7% of the country’s exports. E-commerce has fuelled the global clothing market growth, while cheaper production costs mean many companies use China as a base for their operations.

 

Electronics

The largest Chinese export market is that of electronic equipment, making up a huge 26.3% of their exports and worth over $600 billion. The massive rise in smartphones, tablets and other such technology and far lower production costs have led many world leaders in such technology to utilise Chinese workforces. Apple, Microsoft and many more all have factories in the country, while other Chinese firms produce electronics cheaply and export at a large mark-up.

Furniture, Lights and Signs

Furniture, lighting and signs have been the fastest growing Chinese export in the past five years. From 2011 they increased by 66.4%. Living conditions have improved greatly in the Asian nation, meaning more people are willing to invest in home decorations, along with having greater purchasing power. China is now the world’s largest furniture producing country after 20 years of rapid growth.

 

Machinery

After electronics, and a related industry, machinery makes up China’s second most exported sector. The industry is undergoing changes however, as it is attempting to transition into a more innovative and driven green economy. This has seen consumption-driven products, sports utility vehicles and energy efficient machines become more popular.

 

Medical and Technical Equipment

Also related to the electronics and machinery industries, China produces a lot of medical and technical equipment that is used in hospitals and healthcare centres around the world. Such a large population means much of the equipment produced will remain in China, although it also is one of the nation’s top ten export markets.

Spacecraft

Spacecraft and aircraft was the fastest growing export market in China for 2015, increasing by 113.7%. At $3.5 billion it is still a lot lower than many other exports, yet if it continues to grow at this rate it could soon breach the top ten. China has its own space program, so it may spend more time investing in its own rather than creating products for exportation in the near future.

The Future of Chinese Business

The Chinese apparel market is predicted by some to overtake the USA and become the world’s largest by 2017. Furniture, plastics and electronic equipment all continue to grow and become stronger in the international market. While machinery has experienced slow growth, although that is partly because it is changing based on the country’s green aims.

 

As such a large country, there are many opportunities for businesses to import from or export to China. Our importing and exporting shipping tools will be of use for any company considering these options. Our excellent delivery network means it is no problem to send your parcels to or from China.