Export and Import Commerce of China

The paper includes a review of export business of China with the world with primary focus on its biggest trade partner, USA. Countries depend on their export trade for earning substantial money in the international market. Export trade has contributed to the fast growth and development of the economy of China. China is an example of highest economic growth from the export sector in few years from 1992-2003. By 1980’s, petroleum was the main product exported but after 1990 manufactured goods accounted for 90% share in exporting.
Countries like China depend a lot on their export commerce. After US, Germany, Japan and France, China is the fifth largest trading nation. Even during the Asian crisis, Chinese economy suffered the least. The biggest trade partner of the country is United States of America as shown in Table 2 (US-China Trade Statistics and China’s World Trade Statistics, 2007): Different products like electrical machinery ; equipment, toys ; games, furniture, plastic articles and apparel are exported from China to various countries around the world.
Export trade has contributed to the fast growth and development of different economies like China, US, Germany, Japan and France. Firms export their different products to other countries to participate in the international markets and earn handsome money. The export of goods brings foreign exchange to the nation and promotes the economic progress and development of the country. (US-China Trade Statistics and China’s World Trade Statistics, 2007) above shows Chinese export statistics of different products to US in the year 2007.

Electrical machinery and equipment has the maximum share in the export products of China. This field has undergone greatest export growth. Technological development in this area takes place at an extremely fast pace and the electrical products of manufacturers are outdated very soon. This trend makes it necessary for the country to keep up with the developments in technology to maintain its share in the world market. Read about comparison export promotion vs import substitution
Electrical machinery and equipment represented 9. 6 per cent of the total Chinese export in the year 1992 and its share rose to 22. 3 per cent in 2004 which made it a very significant sector of the overall Chinese exports. On the other hand, China imports more electrical products than it exports. The country’s semiconductor sector is able to fulfill only 20% of the domestic need and the rest depends on the import as shown in Diagram 1. 5 below (Johansson, 2006). Diagram 1. 5 (Johansson, 2006) shows net export of EME from 1992 to 2004. Table 3 (China’s Trade with the United States and the World, 2007) shows top twenty U. S. imports from China, 1997-2005.
(China’s Trade with the United States and the World, 2007) shows top six imports from China by industry from 1994-2005.
References
Johansson, F. (2006). Chinese Export of Electrical Machinery Equipments. Master Thesis in Economics. Jonkoping International Business School, Jonkoping University, Sweden. Lum, T. & Nanto, D. K. (2007). China’s Trade with the United States and the World. Retrieved 20 November 2008 from http://www. fas. org/sgp/crs/row/RL31403. pdf US-China Graphs (2005). Retrieved 20 November 2008 from http://www. sierraasia. com/US-China%20Graphs0327. pdf.