Chinese exporters going higher end: HSBC
The China Post news staffTAIPEI, Taiwan -- China exporters have shifted their focus to more cutting-edge and sophisticated products, according to a recent HSBC report.
March 2, 2013, 12:02 am TWN
The report said machinery and telecommunication products will drive Chinese exports over the next decades. By 2030, machinery products will become China's top exports, which will account a third of the total. They will be followed by telecommunications-related products.
Besides those, China will also export more of the following in the years to come: chemicals, steels and accessories. By region, emerging markets will continue to be the top export destinations for China, as demands from developed markets are expected to remain slow.
Exports to Vietnam and India will enjoy the fastest growth, seeing combined annual growth rates of between 14 and 15 percent until 2030, the report said.
“A migration of Chinese exports to value-added products is the result of many factors, including a change in industrial landscapes, labor cost and external demands,” said Ho Shun-hua, official with HSBC China. “This strategy will have it share of challenges, yet in the end it will solidify China's status as a major trading partner in the world. Companies seeking to upgrade themselves should seize upon this opportunity to raise the quality and value of their products, which can then see increasing shares across global markets.”
In fact, HSBC points out this trend is not only seen in China but also in other emerging markets. Malaysian exporters, for example, have shifted their focus from palm oil and other products to industrial machinery, it said.