In a search of export strength, Chinese manufacturers are increasingly turning their eyes to emerging markets that were spared the worst of the financial crisis.
In a recent survey made by Global Sources, a global B2B platform, hundreds of Chinese exporters said around half of their buyers now come from emerging markets, including Russia, Brazil, India and eastern Europe.
For recovering economies in need of materials, the Made-in-China goods are a favorable choice due to improved quality and affordable price, said Zhang Yansheng, an economist with the Academy of Macroeconomic Research under the National Development and Reform Commission. "It is also urgent for the exporters to diversify away from their dependence on America and Europe," he said.
The International Monetary Fund predicted emerging economies will grow a robust 6 percent in 2010, well above the 2.1 percent expected for developed economies. This was a much-anticipated opportunity for Chinese exporters to expand and improve their businesses.
"Our exports to Russia and India have almost doubled since January 2010, making up for a collapse in orders from the United States," said Zhong Jianrong, President of Jiahong Industry Co. Ltd., a toy exporter based in Dongguan, Guangdong Province.
"The question for us now is how to find enough workers to fulfill these orders," he said.
But the promising markets are not without risks. Inexperience with the new markets and language barriers are the biggest challenges for Chinese exporters, according to the Global Sources survey.
The most important is adapting to the needs of local customers and finding reliable trade partners, said Craig Pepples, Chief Operation Officer of Global Sources. |