China Review News (CRN) recently reported that, by the end of August, Chinese exports recorded a growth of 7.1 percent. The annual target set at the beginning of the year was 10%. In June, the spokesman for the Ministry of Commerce said he was “confident” that the goal would be achieved. However, recently, the spokesman suggested that the export situation is “critical.” He expressed the belief that the growth in the coming months will actually be weaker than the previous months. He cited the decrease in demand, the increase in overall costs, and a global downturn in the trade environment as the main causes of the situation. Meanwhile, international trade friction is on the rise. Both the European Union and the United States are having trade disputes with China. In order to improve competitiveness, many Chinese manufacturing companies are relocating to Mid-Western China, where labor costs are lower. Some companies are also adjusting their product lines to produce more value-added products.
Source: China Review News, September 21, 2012