Economic Analysis: China's Dominance in Global Trade - A Case Study

This case study delves into China's prominent role as a global trade leader, focusing on its dominance in exports like garments, electronics, and plastics due to its large production sector and competitive labor costs. It analyzes China's well-structured supply chain, highlighting key stakeholders such as the government, investors, and business owners who benefit from its efficiency and technological advancements. The study also explores the evolution of Chinese imports and exports, noting its significant growth since the 1980s and its ability to meet global demand with competitively priced goods. Despite facing challenges like IPR infringement and increasing competition, China remains a salient player in the international market, leveraging its coastal areas and strategic policies to maintain its export leadership. Desklib offers this assignment solution along with numerous other resources to aid students in their academic pursuits.

CASE STUDY

Table of Contents
QUESTIONS...................................................................................................................................3
Q1. FEATURES AND TYPES OF GOODS THAT IS CHINA, A WORLD LEADER IN..........3
Q2. CHINA'S SUPPLY CHAIN OF EXPORTS AND WHO ARE PROFITING FROM THESE
SUPPLY CHAINS...........................................................................................................................4
Q3 EVOLUTION OF CHINESE IMPORTS AND EXPORTS......................................................5

QUESTIONS
Q1. FEATURES AND TYPES OF GOODS THAT IS CHINA, A WORLD
LEADER IN
China has become the world leader in export of products and is one of the largest
industries in the market which has a dominance in the export industry. There are different types
of products that are popular in which China specializes and has a competitive advantage in the
global market. The major goods that China is a world leader in are garments, footwear, plastic
products, phones etc. due to its large production sector and cheap labour available in the market.
The country has disrupted the world market and has gained dominance over big nations in terms
of export. China has given competition to various developed nations and has become of the most
important distributors in the global industry.
The nation has developed advanced technology in order to operate large factories and
organization for effectively producing and supplying the products in the market. It has a positive
impact on the overall economy of the nation a significant percentage of the overall GDP depends
upon the production sector of the country. Various nations are interested in buying products from
China as they are available at reduced rates to the people. Big brands are purchasing different
types of products such as electronics, textile, leather etc. due their easy accessibility in the
market. China has come out as an export leader having a large industry which is dedicating in
production and supply of products in the global market.
The availability of products at cheaper rates is one of the most attractive feature of the
China market. It has been the major reason for the interest of companies towards importing
goods from China and gaining advantage in the industry. This factor highlights the significance
of the price factor in order to conduct the overall business practices in the work environment.
The another factor is the high quality of products provided by the nation which is another factor
which is considered by the countries while procuring goods from China. The high quality
products may attract the customers which is helpful for brands in order to gain competitive
benefit in the market. The capacity of the nation to produce products is huge and it can export
goods in large quantities to the nations. It is beneficial for the business in order to increase their
consumption with the availability of their desired quantity of goods. China is becoming one of
the most important nations, which the world depends upon their imports and gaining a better
response from different companies which has a better advantage on its overall success in the

market. There are various types of goods which are exported by China to different nations which
has increased market image of the nation in the world. These goods may be highly popular in
several markets due their unique features and characteristics.
Q2. CHINA'S SUPPLY CHAIN OF EXPORTS AND WHO ARE
PROFITING FROM THESE SUPPLY CHAINS
China has a wide supply chain management system with many suppliers and dealers in
the industry. The textile and electronics industry has a significant share in the overall exports and
has a huge demand in the global market. China has developed effective strategies in order to
expand their export market and become a world leader. The supply chain of China is well
structured and the products are segmented into groups and sub groups in order to organize the
export process. They are then transported with the help of aircraft and ships in order to reach out
to farther places for successfully completing the exporting procedure. The key stakeholders in
the supply chain have developed better technology and equipments for improving the overall
procedure.
Different nations give big orders to china due to the production capacity of the country
and various techniques used by the nation to innovate new and attractive products. The industry
has a huge support by the government and various subsidies have been imposed by it to facilitate
the industry. The government of China is one of the major stakeholders who are benefiting from
these supply chains as they have a prominent share in the overall industry. The different
investors who have invested their money in different firms are the ones who are benefited by the
productivity of the supply chain. It has been beneficial for the investors to increase their returns
and increase their satisfaction levels from the overall business scenario.
The business owners have been benefited with the efficiency if the supply chain as they
are able to increase their profits and enhance the production process. They are the ones who are
directly profiting from the progress of these supply chains and it has a major impact on their
overall success. The suppliers in the overall supply chain or exports are benefited with its
development and are gaining better contracts in the business environment. It is useful for the
suppliers in order to increase their sustainability in the market and gain better recognition from
different businesses in the market. They are profiting along with the industry and gaining better
projects which are a major reason for the overall progress of the supply chain of export of China.

These stakeholders have been benefited by supply chain development of the export market of
China. It has a positive impact on their profitability and increasing their engagement in
developing better practices for enhancement if the export of China. The supply chain of the
country has experienced various developments in the sector of technology which has been useful
in order to make the procurement process safer and faster for the exporters in the market. This
may increase the chances of the business to increase their overall productivity in the global
market.
Q3 EVOLUTION OF CHINESE IMPORTS AND EXPORTS
China is one of the biggest export giant and having a huge share of the global exports.
Over the time with the progress of global economic development it accounts higher share in the
exports and imports. There are a range of such macro environmental factors which are affecting
ability of china to dominate both export and import realm.
China has been the leader of world exports, as it has been seen from the year 1984 to
2004 it was having growth of around 18% per year in its exports. This is clear evidence that
china was leading the global market. Key nations which are offering giant sized market are US,
and Japan, who are also developed nations, yet they are importing from china it is another
evidence of its strong export policies.
The biggest goods were electronics which was leading global exports by the year 204,
then products like phones, telecom, medical, equipment, data processing etc. took higher place
and started leading the market.
If just see the imports of China, then it is a bit strange that china generally does not
import from the same nation where it has exported. Due to WTO terms it has opened its market
yet some strategies are used to counter any external competition for the growth of indigenous
market.
China kept its words to reduce tariff so can pave way for outsiders, but one of the issue
for other nations had been IPR infringement in china. It is so often and caused around 3.8billion
US$ to foreign companies.
Despite giving good reach to the outsiders Chinese imports are very lower as compared to its
exports and the main reason is its ability to meet the demand of customers with cheaper prices.

The main markets are US, EU, Germany, Netherlands, UK, Italy, French, Spain, Belgium
etc. so it can be concluded it is meeting higher expectations of customers.
Export processing entities are given tax exemptions for importing essentials or other
capital goods so can proceed their work without any obstacle. One of the major factor was
foreign inverters in china. Early 2000s the nation was second biggest recipient of foreign
investments. FDI supported ability to make more exports to other nations, not only in short term
but in long run it helped to make strong brands in the nation which ultimately drove higher
exports for China.
China is using its coastal areas with efficiency, at coastal areas the employees are coming
from central regions. So coastal areas which were earlier not producing much now becoming
export hubs and accounting a huge part of overall exports.
So it can be concluded that Chinese imports are not getting surged due to better strategic
decisions and ability to meet local requirements. On the other hands some regulation related
issues such as poor IPR norms are also hindering way for outsider forces who are having
potential to come in and make higher exports in china.
Earlier when china was depended on foreign technology, for even producing exporting
goods it was using technology imported from other nations but with the progress of time it had
started invented owns technology so can support exports.
Some experts believe that the exports of china will be growing in the future too, but there
are many macro environmental aspects which may affects its capacity to make exports such as
higher competition form USA and Japan, some strict rules by WOT. As it was giving huge tax
relaxation to exporters but now at brim of higher competition it cannot abide with previous
policies. Yet the fact cannot be ignored that the China is one of the salient player of international
market and may lead exports in upcoming time too.