It is reported on the 'New York Times' in the us on June 10 that the boost exports has helped to ease domestic recession of China's economy. Exports rose by 15.3 percent in May, as twice of the rate of the increase as predicted. During the last three months China's trade surplus has achieved continuous maturity.
China's factories have elected their rivals in developing countries and Western countries to feel ashamed because even under the situations that there is close to no increase of worldwide demand, they still enjoy large shares in the real estate market. New achievements that China has made rely heavily with the U.S. market. Might China's export for the U.S. has increased by 23%, while export to the EU has increased by only as well as more.2%.
Factors helping to assist China's export success consist of a long-term investment in automation and short-term devaluation of the Yuan. As China has become richer and more affluent, manufacturers in different parts of the country have strived additional medications . the investment in introducing labor-saving equipment, reorganizing the production workshop and through other measures to control labor costs. For example, in the South China a sauna manufacturer installed a CNC drilling machine which can replace eight workers.
In May, chinese people government allowed nearly 1 percent of devaluation of the Yuan to the dollar; therefore,Chinese goods become cheaper in foreign markets. Important changes in inflation, then helps to strengthen the China's export competitiveness. In addition, the Chinese government has also urged the state-owned banks to provide more loans to those small and medium-sized manufacturing enterprises which might be producing goods for exports.
Currently the biggest question is to which extent the investment in automation and improvement of the working efficiency can offset the rise of China's manufacturing labor cost.
Roger Lee, an executive in a Hong Kong garment company said that the labor costs happen to increasing at the rates of better than 15 percent a year, but the increase in productivity per worker is only a portion of the increase among the wage.
Many mainland and Hong Kong enterprises have set up factories in Southeast Asia where wages are lower than that in The country of china. However, other Chinese-funded enterprises, through the contrast, found it problematical to adapt infrastructure and bureaucracy in Southeast Asia, to ensure they remain inside america.
Actually with the utilization of CNC drilling machines and other equipment, China is still a competitive export base, and the nation will also still import Chinese things.