The Reduction Of China'S Export Orders Is Mainly Due To Insufficient Competitiveness.

Exports are China

Why did China's products which were once popular with western society no longer be favored? The mainstream view of China is that China's exports are caused by the decline of consumption in the western market and the decrease in orders.

Such a view is basically consistent with the stereotype of certain Chinese people, but such thinking does not completely reflect objective truth.

More and more non Chinese products

The China logistics and purchasing Federation (CFLP) released the November Chinese Manufacturing Purchasing Managers (PMI) index of 49%, down 1.4 percentage points from 50.4% in October.

Of particular concern is that this is the first time that the official manufacturing PMI index has fallen below 50% since March 2009.

It is worth noting that the new orders index and the new export orders index, which reflect demand, are both weak: the new order index was flat at 51.1% last month, after which the index dropped from 55.2% in March to 50.8% in June, and only slightly increased to 51.1% in July. The new export orders index dropped by 2.1 percentage points to 48.3%, and dropped for fifth consecutive months, and the index fell to 50% below 2009 for the first time since 2009 May.

At the end of the Canton Fair, buyers from Europe and America looked at more and more enquiries, and the actual turnover decreased by 19% and 24% respectively.

It is generally believed that the global financial crisis caused the western society to compress consumption and lead to a slump in the market, which has affected China's exports.

But the fact is not so simple.

Data show that imports increased by 23% over the previous year, but China's exports to the United States increased by 4.4%, while that of toys and games increased by 7.7% and clothing increased by 18.1%.

A few years ago, Chinese products were dominant in some chain stores and supermarkets in the United States, but now there are more and more non Chinese products.

From nail clippers to TV sets, other countries began to enter the US market on a large scale.

Asian countries contend for the US market

In other Asian countries, the proportion of products exported to the United States is much larger than that of China.

China

There are more and more non Chinese made products in the US market, and there are many factors.

Chinese economists usually find reasons for the weakening of the exchange rate and the US market, but the problem is not entirely there.

After the reform in 2005, the appreciation of the renminbi was nearly 20%, which affected the price of export products by only 2.5%.

Over the years, the quality of Chinese products has been unstable, which has a negative impact on China's overall exports.

In The Associated Press's top 10 world news in 2007, Chinese exports were recalled to fifth place before the news of the US presidential election.

A series of Chinese exports were recalled, including lead containing toys, problematic tyres, toxic toothpaste and food.

WAL-MART, a major supermarket in China, has put $11 billion order into India since 2009, and gradually increased India's purchases by 30%.

WAL-MART sold 70% of its Chinese products, but considering the factors such as trade disputes, cost increase and consumer choice, it began to increase non Chinese made goods and make purchases in different countries.

You can't just look for reasons outside.

It can be seen that China's reduction in export orders to western countries naturally has the factors of the US financial crisis and European debt crisis, but it is mainly about the competitiveness of Chinese enterprises and Chinese products.

China's opening up is faced with the complicated external environment, which needs to be fully prepared. Reform needs to improve its competitiveness to adapt to such an environment and respond to changes.

Moreover, sometimes the external environment is not bad, and there is no big impact. The difference is just that China's own is not perfect, and there is no definition of investigation and research.

We must first look for the cause of thinking from outside to solve the problem. We need rational, objective and comprehensive analysis of the reasons for the reduction of export orders. Only in this way can we make accurate decisions and responses in the unstable period of the international consumer market.

Instead of overemphasizing external factors, we should change the traditional mindset, which may enable China to find better solutions to problems in the pitional period.