China’s export industries challenged amid U.S. credit crisis
Posted on Apr-19-2008· by china investor
BEIJING, April 16 (Xinhua) — Exhibiting at China’s largest trade fair may not be a painkiller for tens of thousands of Chinese exporters who have felt a pinch under the spell of the U.S. credit crisis.
It is too early to see how many orders would be signed during the alt=”A lady displays alcohol drinks made in the U.S. during the 103rd China Import and Export Fair in Guangzhou, capital of south China’s Guangdong Province, April 15, 2008. Exhibiting at China’s largest trade fair may not be a painkiller for tens of thousands of Chinese exporters who have felt a pinch under the spell of the U.S. credit crisis. ” hspace=0 src=”http://news.xinhuanet.com/english/2008-04/16/xin_35204051517032032492322.jpg” border=0>
A lady displays alcohol drinks made in the U.S. during the 103rd China Import and Export Fair in Guangzhou, capital of south China’s Guangdong Province, April 15, 2008. Exhibiting at China’s largest trade fair may not be a painkiller for tens of thousands of Chinese exporters who have felt a pinch under the spell of the U.S. credit crisis. (Xinhua Photo)
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”The growth of export orders in the first quarter of this year fell sharply to 20 percent from 140 percent in the same period of last year,” said Cao Xiaojian, vice chairman of the Jiangsu Shuntian Co., Ltd. at the fair.
Meanwhile, the accelerating rise of the yuan makes things worse. Cao said that a 1 percent rise in the yuan would result in a sales profit decrease of 2 percent to 6 percent. He admitted a quarter of managers in the factories under the largest Chinese textile enterprise have been sacked.
The impact of the lower external demand alt=”A Turkish businessman talks to visitors during the 103rd China Import and Export Fair in Guangzhou, capital of south China’s Guangdong Province, April 15, 2008. ” hspace=0 src=”http://news.xinhuanet.com/english/2008-04/16/xin_3520405151703046694721.jpg” border=0>
A Turkish businessman talks to visitors during the 103rd China Import and Export Fair in Guangzhou, capital of south China’s Guangdong Province, April 15, 2008. (Xinhua Photo)
From January to March, China’s total exports rose 21 percent to 206 billion U.S. dollars, 6.4 percentage points lower than a year earlier. The exports to the U.S. grew 5.4 percent to 53 billion yuan, 15 percentage points lower than the same period of last year, according to customs statistics. 
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