The free trade agreement between China and the ASEAN helped increase sales to the region by 30 percent. Stricter standards in ASEAN-member countries and higher costs in China, however, may stem growth in the longer term.
China's exporters are enjoying the benefits gained from the nation's free trade agreement with the ASEAN, one year software program came into style. But many of them are aware sustaining these advantages for countless years will not be that easy.
While the ASEAN continues to absorb a small area of China's exports, shipments to the region have grown inside a healthy pace. In 2010, overseas sales increased 30 percent to $138.2 million. Singapore, Malaysia and Vietnam were the top importers, purchasing $32.35 billion, $23.81 billion and $23.11 billion worth from China, respectively. Exports to Indonesia and Thailand, meanwhile, improved the most, growing by 49.3 and twenty four.6 percent, respectively.
China shipped mostly home appliances, consumer electronics, garments and textiles, machinery, and metal to ASEAN-member countries. Suppliers find the region a viable alternative to the EU and the US, markets that impose anti-dumping duties and other trade sanctions against imports from China. Some also ship to these traditional destinations via ASEAN countries.
Rice cooker exports from Guangdong Galanz Enterprise Group Denver colorado. Ltd and Zhongshan Mingzhi Electrical Appliance & Gas Cooker Company. Ltd to the region, for instance, grew 50 and 40 percent, respectively, in fact. Richforth Ltd's garment sales to Singapore went up twenty percent.
Exports of machinery such as those for weaving fabric and producing ceramic tiles, and metal have increased because the majority of ASEAN-member countries are strengthening their industrial facility. Shipments of these products are expected to keep improving in the other three to five years.
But maintaining healthy sales growth in a position to difficult after that can. While suppliers do not need to worry as much about tariffs and dumping duties, they want to invest in getting a distribution network and meeting increasingly stringent standards.
Many end-consumers in ASEAN-member countries are now looking for upscale, branded home appliances and electronics. While there are home air cleaners . China manufacturers that export their OBM lines, they face competition from established US, EU and Japan brands. As such, they actually spend more resources on building recognition and setting up sales channels.
Product specifications became stricter as fine. China-made motorcycles used to enjoy significant share of the market in Vietnam. But apart from a few major suppliers, most small and midsize companies offer low-end units that is unable to meet Vietnam's increasingly stringent technical requirements.
Further, ASEAN-member countries themselves manufacture many of the products China offers, often at much less cost. Because of rising raw material and labor outlay, prices of ASEAN-bound goods from China increased in for this year !. Use of the yuan astrade settlement currency is not widespread in the ASEAN as well, which has added to for most to lift export prices to minimize currency exchange loss. More price hikes are expected in 2011, in line with rising inflation and wages in Tiongkok.