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The Economist Intelligence Unit Report: China's Next Wave of Exports

BritCham / CBBC
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The Economist Intelligence Unit recently released its white paper on China’s next wave of exports entitled ‘Heavy Duty’. The report focuses on the trends that will impact and effect China’s export market in the coming decade and what this means for Western business.
The two main findings from the report are:

  • Developing countries (non- OECD members) will dominate China’s primary export market;
  • Chinese firms will become the dominant exporters from China, overtaking foreign-invested firms.

The paper also discusses how the following will shape China’s export sector;

  • Increasing wages and technological progress will see Chinese exporters increasingly completing in the core product market of developed countries as they begin to move up the value chain. This is particularly true for the construction and machinery sector, where China is expected to overtake Germany and Japan in exports by the end of 2011, becoming second to only the US.
  • Non-OECD countries will drive China’s export growth, and China will see rapid increases in market share in these markets. Western companies have lost significant export market share in non- OECD markets in recent years. However, China’s penetration of OECD markets in high-end manufactures is likely to be limited.
  • Over the coming year the share of China’s exports produced by domestic companies will rise from 48% to 50%. This relates to the trend which sees foreign- invested firms relinquishing their dominant role in driving China’s export growth.
  • The heavy- machinery export boom will support the development of China’s inland regions, complemented by infrastructure development within China and its neighbouring countries which is accelerating and connecting pan- Asian economic integration.

Access China's Next Wave of Exports Report from the Economist Intelligence Unit

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