Export Import Business In China

The liberalization policy adopted by China has contributed a lot in its economic growth and also initiated the growth of export import business in China. In 2001, China joined the World Trade Organization (WTO) and that enabled it to compete in the major markets of the world. The growth of economy recorded in the last thirty years has been huge with the average GDP (Gross Domestic Product) being around 8%. The economic growth has been around 10 folds during the same period. GDP recorded for the year 2008 was US$ 4,401 billion while the Purchasing Power Parity (GDP) stands at US$ 7,916.43 Billion. These figures make the China the largest economy after United States of America. Most experts around the world think that China will become the biggest economy during the 21st century taking into account all the measures for the GDP.

The tremendous growth of its economy is appreciated throughout the world. China's share in the exports of Asian countries grew to 58% during the year 2007. In terms of imports, China stands at the third position in the world, after United States of America and Germany with figures of US$ 1.13trillion for the year 2008.

However, as per the analysis of International Monetary Fund (IMF) the economic growth of China has been quite low in 2008 compared with last five years. The growth rate of economy for China went down from 12.7% in the year 2007 to 9.6% in 2008. The data released by IMF also stated that the per capita income of China was equal to US$ 3,180.

US$ 39 billion of was recorded in December, 2008, which was second higher ever since the steep down experienced in imports. The export figure for December, 2008 stands at US$ 111.2 billion, which is lower by 2.8% than the figure recorded for the same month in 2007.

After its acceptance into World Trade Organization, China has benefited a great deal, especially when it comes to doing business with the countries in the southeast. Hong Kong being its major shipping outlet has continued to contribute a lot in its economic growth even after the British handed it over to China in 1997.

The major products that China exports to the world are its main industrial products also. Garments, textiles, electronics, and, arms and ammunition are the major products that China exports. Other main products that are exported from China include mercury, magnesium, manganese, tungsten, tin, molybdenum, antimony, salt and barite. China is listed fourth in the world for the production of zinc, antimony, manganese, tungsten and tin, and it ranks second after United States of America in producing salt and sixth for producing gold. It is also one of the largest producers of aluminum.

The export import business in China is deemed to grow further with the further opening of economy that was started in 1970s and 1980s. China has abolished export duties on certain grains and industrial products and has decreased the duties for nonferrous metals and chemicals fertilizers from 1st July, 2009. Further limitations in terms of export tariffs regarding steel wire, vitriol, wheat, soybeans and rice have also been reduced.

China has implemented slow and steady move towards economic reforms and its role in International trade has also increased in recent years.

Source: articlesbase