Detailed Case Study: China's Export Economy and Global Trade Dynamics

This case study examines the dynamics of China's export economy, analyzing its growth, key sectors such as electronics and textiles, and its relationships with major trading partners like the US. It explores the impact of the COVID-19 pandemic on supply chains and the subsequent recovery, highlighting the role of technology and digitalization in improving efficiency. The study also investigates the influence of micro-level data on trade, the shift in export composition, and the impact of trade deficits and surpluses. The analysis covers the evolution of China's trade policies and the country's integration into the global market, emphasizing the role of foreign investment and the impact of tariffs. The case study concludes with a discussion of China's economic growth and its position as a major player in international trade, with an emphasis on the changing landscape of its supply chain and the skills required for future growth.

Case study

Table of Contents
MAIN BODY..................................................................................................................................3
Question number 1:......................................................................................................................3
Question number 2:......................................................................................................................4
Question number 3.......................................................................................................................5
REFERENCES................................................................................................................................1

Question number 1:
China is developing country and it has string connection of business with various other
countries. Although many industrial country fear that china has been exporting and will be major
competitors of the industries. Thus, china export has been growing rapidly and emerging various
sector of business area. Although one of the major export industry of China is of clothing sector
and textile. But from few years’ country has been taken charge of electric industry and it export
new products with good quality like cell phones, telecom network and higher end medical
product. Moreover, China is export leader in many areas but there are few sectors in which it
was not a net importer. It imports resources in order to sustain their resources and it is world
leading customer in cotton, aluminium, steel and cotton. It is second leader in industries like oil
like iron, copper and soybean etc. Although it also deals with autos, steel and domestic
production. However, most of the goods that china export is Machinery like computers,
broadcasting technology and transport equipment. The country also produce textile, metals and
chemical products in order to increase their sales rate. Thus, china is expanding their business by
building healthy relation with other countries and covering their market area. It has been found
that most of the electronic products is good quality but they are not very expensive in nature. So
this strategy of selling their products has helped the country in increasing their export rate and
earning huge profit which directly improve the economy growth. In addition to this, china is
mainly known for electric products as it did world famous for it such as their company like
Xiomara has been very famous in market area of India as it gives various features in low price.
Thus, it is affordable by consumer easily. Moreover, the country has also developed a telecom
application like Tactic which was world famous and still running in top famous app in many
countries. However, due to complication with some countries at time of Covid -19 it has been
banned. The Tic took application has allowed the country to earn huge profit and to enhance
their GDP rate. Although some of the major trading partner of the country is US, Hong Kong,
Japan, Korea and Vietnam. Along with this, China has been largest producer of grain as it has
huge land area such as it sells sugar and milled rice at global market.
Question number 2:
Due to pandemic china was in lockdown for several months and it has lead down the economy
under strain. There has been scarcity in the supply chain as trading has been closed due to

COVID protocol. Although there were number characteristics of china economy that have been
influenced by the export. A very few number of china costal prominence and cities are included
in trade. However, after post pandemic the country has begun to improve the supply chain by
exporting various other countries. The major amount of trade has been based on the technology
sector and agriculture. In 2005 China has begun their export in garments products and in many
categories as it has benefited the country to cover the market area of US and others by importing
the product. However, US and European government stated in [ trade union that many jobs were
on stake. Thus, china has raised their supply chain by exporting in textile products but it was not
very much beneficial. However, it has been found that Chinese officials complained that China
did not benefit from its export success appropriately, some of the authors in their article has
stated that Chinese companies should develop the skills and capabilities. So that it can engage in
all relevant activities involved in international production and sales. The official of China says
that country should open overseas companies so that it can build strong international relation.
Although the export limit of China is limited and most of it was depended on foreign technology,
capital and equipment which has lead in poor supply chain. Although most of the country export
has been controlled by companies that did not perform any kind of function in the market area of
china. For example: textile industry of Hong Kong has been present in China but it all
administration was controlled by Hong Kong. This type of supply and export/ import of goods
were not in favour of China. Moreover, last year has created rise in supply chain in china such
there has been increasing use of Robots in the Warehouse for improving and marinating strong
security system. This trend has lead focus on digitalization which has helped chines companies
to maintain their smooth flow. Along with this, it has got potential benefits of AI and IOT for
maintain the supply chain. The recent change in the supply chain has is to reduce error and
increase efficiency. Moreover, the china Supply chain has favoured the job market and
employers as it leads more candidates in the market. Although due to high demand in the market
areas the candidates has disadvantage regarding payment, flexible working hour and skill
development. Thus it has been found that old candidates are not leaving the job unless good job
opportunity has been provide to them. Thus, company have to offer outstanding package and
benefits in order to attract right employee in the market. Thus, like the economy china supply
chain has brought many changes in the country. The market area of China is looking for
qualified employees with great skill so that it can deal with the growing changes. Although

digitalization skill will be required in the supply chain that exhibits the factor present in current
economy of china. However, the country has to deal with the changes which is occurring in
supply chain in order to maintain its economy.
Question number 3
Micro level data of the enterprises influence the export and import in order to consider the
similar and general trade. All the result indicates the quality of competitive imports in general
trade exerts for significant and stable promoting in order to maintain U- shaped relationship. On
the basis of competitive advantages it has been analysed that Chinese enterprises are impacted by
quality of import because it is necessary to maintain the labour-intensive industries. On the basis
of case study it has been analysed that by following the concept of self-sufficiency is can be
said that it is related to economic interdependence.
Also, foreign trade was only US $6.6 billion on the year 1972, at that time country focus
more on Ministry of foreign trade for monopoly on China's trade. According to composition of
China's export it can be analysed that exports of China for textile market and garment were
declined by 29% in the year 1993. The electronic industry is one of the largest share of China's
exports and at that time it increases 11% to 33% percent. The major force behind China's export
growth was foreign invested enterprises is considered as the second largest recipient of foreign
direct investment.
It has been evaluated that the composition of China's exports are related to the Textiles
and clothing industry in order to more focus on accounting period. The textile industry is
developed by shifted the company in Hong Kong and emerged for garment and textile in order to
increase the productivity also it impacts on import rate as well as miscellaneous manufacturing
including toys and textiles that is went down from 43% to 28%. In the year 2004, it has been
analysed that taxes on imports are affected. Further, it can be said that In the year 2004 China
import many resources in order to boom with economy. Chinas is one of the largest consumer of
steel, cotton, aluminium, cement etc. Major demand for China is for natural resources in order to
world prices and different number of commodities such as soybean, aluminium, cotton etc.
On the basis of Chinese export economy it has been analysed that in the year 2005, the
rates of tariffs were declined in order to contributed resources in US, that can be related to US
$617 billion in the year 2004. By the trade deficit it can bes realized that it impact positive in

order to maintain trade surplus with Western Europe by substantial trade deficit with rest of Asia.
According to Whither the Chinese export economy the inflow of Chinese goods it can be said
that it is contributed for trade deficit in the US that is reached by total US$ 617.
In the year 2019, it has been analysed that the total value of exports (FoB) was 2,498,570
is related to the total value of imports was 2,068,950 million. The China economic related to
foreign trade and investment are implementing to free market that is related to fast growing
companies in order to more focus world's fastest- growing economies with the real annual gross
domestic products (GDP) the growth is average 9.5% through 2018 that help for described
Words bank by fastest sustained expansion by major. Top 5 products of China is related to
computers, broadcasting equipment, telephones, office machine parts.