Analyzing China's Export Success: A Detailed International Trade Case

This case study examines China's export economy, highlighting its strengths in electronics, textiles, and other sectors while also noting its import dependencies on raw materials like copper and oil. It discusses China's transition from a low-cost manufacturing hub to a key player in the global supply chain, driven by factors such as inexpensive labor, strategic trade policies, and entry into the World Trade Organization. The study further analyzes how China capitalized on low-skill labor to dominate specific markets, particularly in textiles and electronics, and addresses its challenges in building a strong global reputation due to quality concerns. Despite these challenges, China's strategic focus on revenue growth and profit maximization has enabled it to become a dominant force in international trade. Desklib provides similar past papers and solved assignments for students.

Case study

TABLE OF CONTENTS
Q1 ....................................................................................................................................................3
Q2.....................................................................................................................................................4
Q3.....................................................................................................................................................5
REFERENCES................................................................................................................................8

Q1
The main features of goods that typically China is expert or prominent is electronics, data
processing technologies, textiles, clothing and much more. Also, all electronic goods that are
sold in the market consists of use of technology that makes working of the individual easier
along with providing them in the minimum prices and rates. Furthermore, in certain reports it
was found out that electronics industry accounted for the largest share in China exports. Also, the
major reason for this was because most of the electronics items were made through the export
processing mode. Further this was method where all the internal parts or components of any
particular items were imported for simple assembly and the later these were exported in very
minimum time-frame to various regions. Moreover, China has various type of goods and the
services that it is specialized into such as steel where large amount of the steel in form of raw
material is been exported to other countries thus enabling the country to experience rise in GDP.
Also, there are various number of trading partners that helps China to export various
goods easily from one place to another. Moreover, in recent era China was also known for
world's biggest new car market where latest designs cars with unique features and look are seen
made to be exported worldwide available in various ranges. Apart from the most known other
products that are part of the China are the textiles that includes all varieties of apparel and shoes.
Also, based on US-China Business Council, inexpensive labour and material have allowed the
China to dominate the world market of textiles. Further, it is mostly known for its silk that it is
considered to be strong, lightweight and naturally beautiful. However, in spite of various
products that china sold it is not able to build strong goodwill worldwide due to the quality
standards issues, mistakes in certain of making part and process of goods and much more. Also,
it is said that china is also specialized in manufacturing large number of furniture including the
machinery to manufacture it. Although, it is goods in exporting various goods it also imports
copper, cotton, aluminium, cements etc. for various purposes. Also, it world second largest
consumer of oil. Moreover, being the largest exporter of the may goods China is not being able
to derives the success from its products due to the lack of adequate amount of skills that is
required for the international levels of production for supplying various goods. Also, China has
now entered the in field of supplying high end medical products along with more complex office

equipments so that better trade might be promoted across various regions and other parts of the
countries.
Q2
The business of China in the international market is focused on growing the revenues and
the maximization of profits. It is also remained as the relation to the consistency which is
changed dramatically over the period. China in its export has been primitive and low cost
manufacturing location which has provided the world with ever advancing global supply chain
hub. The focus of this store is ready to be distributed in the capabilities which are available from
the China. Countries n North America and certain European counties are also able to gain
benefits from this supply chain of export of China.
China has the largest share of the electronics industry which has accounted to be one of
the largest share of China's total exports. Companies in Taiwan also started setting up production
capacities to produce the electronic goods. As a result of this 50% of the worlds electronics
goods started to be manufactured in china. Due to these companies from countries Hong Kong,
Taiwanese Korean, Japan, North America and other European nations started facilitating their
manufacturing in the Chinese mainland. This is how these were able to benefit from the supply
chain exports of China.
Even though China at that time was one of the Booming leader in many categories for the
export. There were sectors in which It was not able to establish its grasp. As it was so much into
the production of electronics its requirement for minerals like Steel, copper, aluminium and also
cement was very high that it imported from other nations. In general these imports was done by
this organization only from the developing nations with high amount of natural resources. China
used these minerals for the preparation of even costlier and better technological products which
would be exported by it in the future. Hence, despite the benefits that other nation were able to
make out of China it was always one step ahead in the business departments.
The workers in China were one of the hardest working workers which were able to
provide the most productive time to their operation in comparison to any other country. The
China has been very effective in selling the products related to cotton such as T-shirts, dresses
and bras in as it was able to produce these products with one of the bed linen that has been able
to provide the agreement about the borrowing the time and textile industry that was commended

by the Western countries. These western countries were benefited by these exports as it was able
to buy these textile products at very cheap rates that it sold to in different parts of the world with
brand names. It was the result of this in the world market cheap products were sold at high rates.
Q3
The exports in China began in the year of 2000 as then China was able to increase its
exports from 20% to 35%. The imports failed to keep pace and this economy became more
dependent on external demand of the current surplus, mirroring the trade surplus and also
increasing the less than 2% of the GDP for the peak 10% of the income the organization was able
to generate. It too China 9 years from then to become the largest exported of the world when it
eventually surpassed japan. The reason why China was able to achieve this milestone was due to
the growth of its manufacturing sectors. Back them the exchange rate of China was undervalued
which helped in surging the growth. Specially in sectors such as textiles, apparel, furniture,
metals and machinery. This was the sector of growth that was highly concentrated in the specific
products.
Then the China entered the World Trade Organization in which it allowed the country to
take greater advantage of the large sized pool of low skill labour. This helped some of its heavy
industries which were capital of subsidies and also from a reform of the state of owner
enterprises that had new profitability which lead to the rapid expansion of its overall capacity
towards production. The growth of China's export was so high that it almost accounted for the
half of the machinery export in the world. Soon China was taking over the market of specific
high tech goods, cell phones, LCDs, laptops and integrated electronic circuits. The increasing
demand of the surging economies such as US and other European nations lead to the increase in
the exports of High-tech product for China. All this was due to the advantages that China was
able to take from the low labour costs and their efficiency to product the high tech products.
Not all the sectors were captured by China as it was also some major importer of products
like Steel, automotive, iron ore, copper, aluminium, oil, cotton and soyabean. China imported
products in large quantities in order to develop make sure that it did not lack in resources which
were essential for its survival. Most of the good its imported was then converted by this
organization into something with more productivity and value. China did not face any issues
importing these products in high amounts as it already had a high level of exports which was 10
times higher than the imports it made. Hence, it was very effective strategy for China was made

it concentration of different industries. The reason why Chinese manufacturers were able to
produce high quantity at the cheapest rate in comparison to the international market as the wage
rate of this country was much low in international trade terms. Being a communist country
helped it makes rules which otherwise would not have been possible for democratic organization.
The large population of this country was the key towards the gaining the high numbers of
unskilled workers to help the large rural population to gain jobs at the manufacturing sector.
From this argument about the macro levels of important and exports it can be determined
that China was able to take grasp of the different market due to its capacity to product the
innovative technology and low wage labour to capture the international export market. China has
also been able to mitigate the weak-points which it had through importing the product that it was
not able take advantage in the market.