According to the statistics released by the Customs, the export growth in June dropped by 20.6 percent to $21.35 billion, compared with that of May which witnessed a growth of 28.1 percent. Experts attribute the slowdown to the shrinking demand caused by the global economic slowdown and the increasing pressure on Chinese manufacturers because of yuan appreciation and high raw material cost. Based on this, it is estimated the export slowdown may continue in the next half of the year, forcing the government to reconsider certain export-related policies.
Some insiders said that the declining export growth is attributable to the rising labor and raw material costs, and the government’s tightening policies implemented since last year. And the global economic slowdown is making the situation worse.
The custom figures also show that the trade between China and India is increasing the fastest among China’s major trading partners. The bilateral trade stands at $29 billion, up 69 percent. EU remains China’s largest trade partner, followed by the US. And the imports of primary goods increased fast, which many be caused by the increasing price of the commodities in the international market.
An analyst with HSBC, said that the figures should raise people’s expectations on favorable government policies for export sectors. For example, the textile industry has called for a rise in export tax rebate. And Chinese government has since last years lowered or even removed the export tax rebate of some productions to curb the trade surplus. But some sectors are struggling as a result of a global slowdown, yuan appreciation and rising operating costs, hampering exports anyway.
Popularity: unranked
China Economy
decline, export growth, labor cost, rising cost, slow down, slow export growth, yuan appreciation
Based on the current situation of the housing market, it is estimated that the sales of residential houses is to decline to the level 10 years ago this year. This is attributable to the economic uncertainties as a result of the global slowdown and the tight monetary policy at home, which draw forth homebuyers’ and investor’s wait-and-see attitude.
It is released in the latest report on Shenzhen’s housing market that the average housing prices in May declined 36 percent form the level of last October at 17,350 yuan ($2,540) per sq m to 11,014 yuan per sq m. According to the insider prices are expected to drop another 10 percent as some struggling small and medium-sized real estate developers and speculators are selling properties for cheap to maintain cash flow. And it is reported in some areas housing prices have already dropped 50 percent.
In the first half of this year, the total supply of new residential houses reaches 1.54 million sq m or so, 46 percent of that of the year before. Based on the situation, it is forecasted that another 3.5 million sq m residential housing area will be sold later this year.
It is generally believed that the tightening mortgage policy attributes great to the cool down of the overheating housing market, especially that in the Beijing, Shanghai, Shenzhen, as the housing prices rising has been mainly attribute to speculation.
Popularity: unranked
China Business
decline, global economy, home sales, Shenzhen, uncertainty
As a novice, I have to confess that I was not quite familiar with the outsourcing industry before my being the member of BPOVIA. I only used to hear of the successful stories about Tata Consultancy Services Subsidiary from the business studies related books. The same as China, India is a developing agricultural country with a large population. Despite of its poor industry basic, The IT industry of India can reach the relatively high level of the world. Moreover, there are thousands of IT talents exporting to U.S and other European countries as the engineers every year. The southern city of Bangalore has become the center of Asian IT industry, which is also entitled as the eastern Silicon Valley. As the matter of fact, China has owned more advantages than India. For example, China has more university graduates, Chinese economy runs faster and smoothly than India’s. In addition, the social stabilities and invest environment in China is more appropriate than that in India.
After working in BPOVIA for sometime, I learnt something from the fields. Pondering about the reasons triggering the distance between China and India in the field of IT industry, we have to commit that India should fix a suitable approach for the development of domestic economy and improvement of the foreign trade. Since the rising of the cost of labor force, every developing countries should not only regard themselves as a world factory. On the contrary, they ought to spare no efforts to find a means to accelerate the framework of the domestic industry. Luckily, India trains thousands of IT talents, which only contribute to the software promotion, but also greatly foster the Indian economy from the low-cost world factory to a center of knowledge.
Being the member of the BPOVIA, what bring me most is the versatile crew and the high spirits of the working team. BPOVIA is the right one to try to help China to establish the similar market environment as India’s. Focus on the service on BPO, ITO, KPO (knowledge process outsourcing) and PPO (personal process outsourcing), it successfully avoids the low price competitions, but lead the industry to the quality and time-consuming competition. Both the manager and staff are fairly diligent and talent, graduating from various universities and distinguished majors. In order to trigger the boom of Chinese IT and outsourcing related industry, BPOVIA and other field leading companies should take the responsibilities to represent the image of the industry. Furthermore, both the government and the public should give the sufficient supports and importance to the development of such enterprises seeing that the successful experience of India’s.
Popularity: 3%
BPO, China Business
China. India, IT, Outsourcing