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Our coverage of this large
and rapidly growing market is comprehensive. The
North Asia Service includes regular direct calls
at Shanghai and Qingdao. Cargoes for Xingang,
Dalian, Yantai, Nanjing and Ningbo are
trans-shipped via Busan. The East Asia Service
calls directly at Hong Kong and Mawan. Cargoes for
the southern region ports of Fuzhou, Huangpu,
Shekou, Xiamen and Yantian are trans-shipped via
Hong Kong or Kaohsiung.
Economic Indicator
| Population |
1.30 billion (2004), US$1,595 (2004) |
| GDP |
US$1,370 billion (2003), |
| GDP Growth Rate |
9.3% (2003), 9.5 % (2004) |
| GDP Per Capita |
US$1099 (2003), US$1,230 (2004 forecast) |
| Inflation |
1.2% (2003), 3.9% (2004) |
| Total Imports |
US$560.90 billion (2004) |
| Total Exports |
US$593.60 billion (2004) |
| Currency |
1 RMB/yuan = 10 jiao |
| Exchange Rate |
NZ$1 = RMB 6.096 |
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Source: World
Trade Atlas, Asia Monitor - China & North East
Asia
Overview
Dramatic economic progress
and relative political stability have marked
China's history in the last 20 years. The economic
reforms and the opening up of China to the outside
world have unleashed forces that have transformed
Chinese society. This has resulted in many more
opportunities for the Chinese to realise their
potential, and to participate in, and benefit
from, the rapidly developing economy. For
foreigners the transformation provides economic
opportunities to be capitalised on.
Beginning in the late
seventies, the Chinese leadership has been trying
to move the economy from the sluggish Soviet
style, centrally planned economy to a more
productive and flexible economy with market
elements, but still within a framework of
Communist control. Despite progress, the
leadership has often experienced the worst results
of socialism (bureaucracy, lassitude, corruption)
and capitalism (windfall gains and stepped up
inflation). Beijing, therefore, has periodically
backtracked, tightening central controls at
intervals.
As the State moved out of the
'cradle to grave' social care that was provided
via State owned companies, people started having
to pay an increasing proportion of the costs of
housing, education, medical care and pensions. In
the late 1990s this lead to a slowdown in consumer
spending as people started to save, resulting in
two years of deflation. In the major cities
housing and insurance markets are starting to
develop.
The economic restructuring
resulted in major job loses in SOEs as these
organisations sought to become profitable in the
face of competition from foreign invested
enterprises. In the late 1990s some 15 to 20
million workers were laid off, mostly in labour
intensive industries. The same number is likely to
be laid off over the next few years as the next
round of restructuring proceeds.
WTO
entry will allow greater imports of foreign
agricultural products. This will directly impact
the rural sector where many of the farms are
barely economic, despite some subsidies. The
result will be further movement to the cities.
Already some 80 million people have left their
place of registration to find work in the cities,
and more will follow.
Social stability is,
therefore, a major concern. Another issue, and one
that could threaten economic growth, is the
deterioration of the environment. Years of
mismanagement have lead to air pollution, water
pollution, water shortages and deforestation.
Since it began its open door
policy in 1978, foreign trade has become more
important to China. China is now one of the
world's top trading nations (4th in 2003) and is
the 10th country to achieve a US$1 trillion
economy. Low labour rates, an educated work force
and attractive investment policies have encouraged
a large number of overseas companies to move their
production to China, in particular Hong Kong and
Taiwanese companies. The output of these foreign
invested enterprises now constitutes a large
portion of China's total exports.
When
talking about the China market (population of 1.3
billion) it is important to break China down into
regions and then within those regions further
breakdown the market in terms of those consumers
that can afford to buy your product or service.
What we are now witnessing in China is a new
generation of consumers emerging from China's
hardships. This new generation can be defined as
being young and well educated, familiar with
western culture and a high probability they will
be employees of multi-nationals. They are aware of
the latest consumption trends and have high
purchasing power. They are looking for a new way
of life - impacts on clothes, dining and living
and they are generally regarded as trend-setters
and trend adopters in China. This growing middle
class is typically located in the major cities on
the Eastern seaboard of China and in particular
the following four cities - Beijing, Shanghai,
Shenzhen and Guangzhou where GDP per person is now
over US$5,000.
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China's
Top Ten Exports for year ended December 2004 (US$ millions)
| Total Exports |
593,647 |
| Electrical machinery (integrated circuits, electrical
parts and equipment) |
129,739 |
| Machinery (computers and all types of machinery) |
118,282 |
| Woven apparel |
28,983 |
| Knit apparel |
25,804 |
| Furniture and bedding |
17,319 |
| Medical instruments, cameras, optical equipment |
16,266 |
| Footwear |
15,205 |
| Toys and Sports Equipment |
15,092 |
| Iron & Steel Products |
14,474 |
| Mineral fuel and oil |
13,753 |
Source - World
Trade Atlas - based on Chinese Customs
statistics
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China's top ten imports
for year ended December 2004 (US$ millions)
| Total Imports |
560,811 |
| Electrical machinery (integrated circuits, electrical
parts and equipment) |
142,101 |
| Machinery
(computers and all types of
machinery) |
91,479 |
| Mineral fuel, oil, etc. |
48,027 |
| Medical instruments, cameras, optical equipment |
40,125 |
| Plastic (all types - base products to manufactured) |
28,064 |
| Organic chemicals |
23,811 |
| Iron and steel products |
23,633 |
| Ores, Slag and Ash |
17,270 |
| Vehicles (excl. railway) |
12,944 |
| Copper articles (all types of products from copper) |
10,476 |
Source - World
Trade Atlas - China Customs
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China CustomsNZ Exports
to China - FOB for year ended December 2004
(NZ$
millions)
| Total New Zealand exports to China |
1744.18 |
| Dairy products |
349.40 |
| Wood |
162.11 |
| Wood pulp |
161.62 |
| Wool |
154.33 |
| Raw hides and skins |
93.22 |
| Fish and seafood |
90.71 |
| Live animals |
90.52 |
| Organic chemicals |
85.13 |
| Animal guts, bladders, stomachs and parts |
84.36 |
| Fats & Oils (esp. raw bovine, sheep & goat
fat) |
65.42 |
Source - World
Trade Atlas
China's Imports from New
Zealand C&F for year ended December 2004
(NZ$
millions)
| Total amount of China's imports from New Zealand |
2137.81 |
| Dairy products |
355.74 |
| Wood |
257.53 |
| Wood pulp |
167.40 |
| Wool |
157.52 |
| Raw hides and skins |
134.15 |
| Live animals |
129.10 |
| Baking related |
88.40 |
| Fish and seafood |
87.01 |
| Organic Chemicals |
86.10 |
| Paper and paperboard |
72.50 |
Source - World Trade Atlas
The above information is an excerpt from the New Zealand Trade & Enterprise Country Briefs. For a more comprehensive
account visit:
http://www.nzte.govt.nz
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