Markus Huber
Author:
Markus Huber

China’s foreign trade shrinks more than expected

The Chinese economy got a cold shower right at the start of the New Year. According to the national customs authorities, exports slipped by 11.1 percent and imports even more by 18.8 percent in January compared with 12 months ago. Earlier official estimates spoke of a decrease by 1.9 and 0.8 percent, respectively.

How will the Chinese sports business develop in the face of shrinking foreign trade figures? We will see in a few days’ time at ISPO BEIJING – the industry’s most important meeting point during the winter season.
How will the Chinese sports business develop in the face of shrinking foreign trade figures? We will see in a few days’ time at ISPO BEIJING – the industry’s most important meeting point during the winter season.

However, it is widely recognized that it is always difficult to compare January with the last month of the previous year because of the alternating dates of the Chinese New Year when the economy slows down substantially for two weeks. For a more reliable indicator, see the figures for the whole year 2015. Compared with the prior year, foreign trade value was down by 8 percent. The government had expected a slip of “only” 6 percent.


The sporting goods industry is curious about what impact this evolution could have on the sector. Observers believe that the development might not only be bad news: First, the slowdown may have a positive effect on the labor market. For employers, that is. +

The changing employment situation might lead to more affordable staff that could help improve competitiveness of manufacturing companies. Second, the government may accelerate its efforts to improve domestic demand for consumer goods. So far, Beijing has focused mainly on the export trade as the main engine to power China’s rise to an economic super power.

China: Consumption is the citizen’s first duty

A third aspect may have an impact on the global stage. Chinese brands and retailers may well start to increase their efforts in foreign markets earlier than expected. So far, Chinese industry has concentrated its activities on the domestic market. Strong growth there has kept them so busy that they have not looked more closely at foreign business opportunities.


China
Prof. Dr. Nick Lin-Hi speaks with women in the factory
The term Corporate Social Responsibility (CSR) is used frequently, but what is it really about? The credibility of many companies is at stake here, especially when it comes to manufacturing in China. ISPO.com discussed these issues with a CSR expert who collects valuable data in Chinese factories and validates them. 

 

ISPO Beijing which starts on February 24 will reveal the latest developments in the Chinese and Asian-Pacific industry. ISPO.com will be reporting from the Chinese capital on a regular basis.

Markus Huber
Author:
Markus Huber


Markus Huber
Author:
Markus Huber




China
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