Trade activities have drastically changed the face of China’s local economy at all. In fact, trading with China has had a profound impact on the economies of various countries and their cities around the world. The availability of cheap labor in the Chinese market means that trading with China is more economical compared to purchasing products from the local market. Mainly due to this reason, China is one of the largest exporters of goods in all over the world. Doing business with China can be profitable if you take the following factors into consideration.
1. Major Exports from China
Many people think that when trading with China, its major exports include items such as low-cost clothes, toys, footwear, fashion accessories, etc. However, in fact, its top export items are travel and machinery equipment including cell phones and data processing equipment. Other leading export items for doing business with China include items such as iron and steel, fabrics, clothes, and optical and medical equipment. On the other hand, chemicals, ready-to-eat food, and minerals and fuel are also included in major export items. With a range of products, business with China is definitely a profitable activity.
2. Leading Imports to China
Although China is mainly an exporter of goods, it imported goods worth $921.5 billion in 2010 as well. When trading with China, it’s vital to know that its significant imports include equipment, electrical parts, and transport equipment which account for 43% of the total imports. Power generating equipment, mineral oil and fuel, autos, chemical compounds, plastic products, optical and medical apparatus, and ores are all significant items of import when trading with China.
3. Leading Trade Partners
When it comes to business with China, the country exported around $1.2 trillion worth of products to all parts of the world in 2010. The leading export partners of China are Hong Kong, United States, Germany and South Korea while its leading import partners include the United States, Taiwan, South Korea, Japan and Germany. The United States and other countries are involved in trading with China whereas China itself has trade cuts with many Asian trading partners including Japan and South Korea.
China is a large country and offers a wide assortment of raw materials and products. Moreover, since its labor cost is comparatively and significantly cheap, businesses from around the world consider trading with China to be a highly profitable activity.