By James Rickman, SVS China beat out the United States now standing as the largest growing auto market 2009. Ahead for 2010, China is on track to replace Japan as the world's second-largest economy soon. China passed Germany as the third-largest economy and leading exporter worldwide in 2009. China is set to expand adding 350-million new middle class consumers by 2020. Its population the world’s largest now stands at 1.1-Billion people.
China announces that it surpassed Germany as the top exporter worldwide as December exports jumped 17.7 percent for the first significant increase in fourteen months, official data proves another sign of China's imminent rise as a global economic powerhouse. See top Chinese Auto Manufacturers http://chinacarsalesoct.blogspot.com/
China announces that it surpassed Germany as the top exporter worldwide as December exports jumped 17.7 percent for the first significant increase in fourteen months, official data proves another sign of China's imminent rise as a global economic powerhouse. See top Chinese Auto Manufacturers http://chinacarsalesoct.blogspot.com/
Chinese Exports for December 2009 were $130.7 billion, data according to the General Administration of Customs. That raised total 2009 exports to $1.2 trillion, ahead of the 816 billion euros ($1.17 trillion) for Germany forecast by its foreign trade organization, BGA.
Official estimates for real Chinese GDP growth now stands at 9.6 on 25 December 2009. December's rebound was an "important turning point" for exporters, a customs agency economist, Huang Guohua, said on state television, CCTV. See China GDP article http://chinagdpgrows.blogspot.com/
China's new status is largely symbolic but reflects the ability of its resilient, low-cost manufacturers to keep selling abroad despite a slump in global consumer demand due to the financial crisis. Every auto manufacturer including FORD (F), GM, Toyota (TM), Volkswagon (VLKAY.PK), Honda (HMC), Hyundai (HYMLF.PK) and Kia Motors (KIMTF)
Solid Foreign sales of Chinese goods are driving the country's recovery after demand plunged during global economic crisis in 2008, forcing thousands of factories to close and throwing millions of laborers out of work.
Boosted by a 4 trillion yuan ($586 billion) stimulus, China's economic expansion accelerated to 8.9 percent for the third quarter of 2009 and the government says full-year growth should be 8.3 percent.
China is best known as a supplier of shoes, toys, furniture and other low-tech goods, while Germany exports machinery and other higher-value products. German commentators note that their country supplies the factory equipment used by top Chinese manufacturers.
China's trade surplus shrank by 34.2 percent in 2009 to $196.07 billion, the customs agency said. That reflected China's stronger demand for imported raw materials and consumer goods while the United States and other economies are struggling and demand is weak.
The United States and other governments complain that part of China's export success is based on currency controls and improper subsidies that give its exporters an unfair advantage against foreign rivals. See China PV Solar manufacturing http://seekingalpha.com/article/158640-ldk-solar-inks-china-pv-deal
Washington has imposed anti-dumping duties on imports of Chinese-made steel pipes and some other goods, while the European Union has imposed curbs on Chinese shoes.
The U.S. and other governments also complain that Beijing keeps its currency, the yuan, undervalued. Beijing broke the yuan's link to the dollar in 2005 and it rose gradually until late 2008, but has been frozen since then against the U.S. currency in what economists say is an effort by Beijing to keep its exporters competitive.
The dollar's weakness against the euro and some other currencies pulls down the yuan in markets that use them and makes Chinese goods even more attractive there, adding to China's trade surplus.
Commodities were among China's key imports, the agency said, with the country bringing in 630 million tons of iron ore last year, up 41.6 percent from the previous year, and 200 million tons of crude oil, an increase of 13.9 percent, as prices for both commodities fell. See PetroChina Buys Canadian Oil Sands http://www.sustainablevirtualbiz.com/all_energy_opportunities_report_2010
Economists say China has been rushing to build up stockpiles at bargain prices since crude oil and other commodity prices plunged in 2008. That motive, more than a revival in actual industrial demand, has driven its recent import boom of oil, copper and other metals.
About Author
Mr. Rickman is a respected analyst, innovative expert in business development and media news services with over 30-years experience, published worldwide. He is also the author of several books including Eight Billion People. Mr. Rickman holds advanced business and technical degrees from Boston University. For more information visit : http://www.sustainablevirtualbiz.com or call (503) 621-4953.
