Chinese manufacturers plan to export to North America

While Asia is still the most common market for Chinese export manufacturers, accounting for some 73 percent, one-third of the companies plan to export to North America, according to a survey.

In addition to Asia, where the greatest growth potential for trade is, more than 52 percent plan to export to Western Europe, and one-third plan to expand in North America, Oceania, South America and Central America, says the Made In China 2.0 Readiness Index.

The index was compiled in Beijing by Caixin Media and Atlanta-based UPS, the world's largest package delivery company and a leading global provider of specialized transportation and logistics services.

Chinese export manufacturers have a much larger global footprint than other less-ready export manufacturers, and they are more than twice likely to sell their products in the emerging markets of Eastern Europe, Africa, the Middle East and North Africa, Oceania and Central America, according to the index.

The index consisted of a survey of 1,000 Chinese export manufacturers from July 24 to Aug 6. It was conducted by Global MarketInsite, Inc for UPS and Caixin Media.

"The survey recognizes a major shift taking place in the Chinese economy that has regional and global importance," said Nanda Cesarone, president of UPS Asia Pacific.

According to the survey, Chinese manufactures should build a deeper understanding of customers' business, markets and environment, while elevating customer partnerships to the level of true partnership.

The Chinese economy is evolving and a number of successful, though labor-intensive, Chinese manufacturers are now facing new challenges and need to transform and evolve, said Huang Yiping, a professor from Peking University's National School of Development. "I believe the solution is a move toward high value-added sectors and investing in innovation."

The index provides an excellent edge to business owners looking to set up development strategies and improve their competitiveness, and it also helps government bodies engaged in policy making and for supporting the upgrade of the manufacturing industry in China, he said.

The survey interviewed senior decision-makers in export manufacturing companies across China, including 31 percent from Shanghai, 24 percent from Shenzhen, 10 percent from Chengdu, 10 percent from Qingdao and the remaining 25 percent from other parts of China.

Respondents were drawn from GMI's online panel, and to qualify for the study a respondent had to work for a company that exported at least 40 percent of the value of the goods it produced and have senior decision-making responsibility within that company.

zhengxin@chinadaily.com.cn

(China Daily USA 11/10/2014 page3)