Exports of Chinese Firms to Europe Decline: Survey
The fiscal crisis now hitting the eurozone has not only immobilized the region and sent panic jitters to other nations, it has also rendered shipments of a majority of Chinese exporters to slump in the past few months, data from a newly released survey showed.
Global Sources, a trade information provider, in a statement said two thirds of some 600 companies assessed from Nov. 4 to Nov. 7 reported exports to Europe fell in the last few months.
Not surprising, 42 per cent of enterprises plan to expand operations in emerging markets such as East Europe, the Middle East, Asia Pacific, Latin America, and Africa.
Of the total number surveyed, 35 per cent related significant declines, 22 per cent said export shipments remained stable and 12 per cent reported experiencing growth in shipments.
Global Sources further said 40 per cent of the companies expect to encounter further export reductions to Europe in 2012, while 29 per cent remained positive and anticipated more shipments.
To cushion the impact of slowing export orders, Chinese exporters they would accelerate introducing new products, as well as cut costs and capitalize more in research and development to improve product quality, the survey noted.
China's overall exports in October tumbled 7.2 per cent month-on-month to US$157.49 billion, but still showed an increase of 15.9 per cent year-on-year, Chinese customs figures show.
The survey involved 581 suppliers of home products, electronics, hardware, gifts, garments and textiles, solar products and other products in China's economic hubs of Guangdong, Zhejiang, Jiangsu and Shanghai.