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The so-called trade surplus means exports of a country's total trade in a given year is greater than the total imports, also known as "surplus". Said the country when foreign trade in a good position. The size of the trade surplus largely reflects a country in a given year the foreign trade activity status. Under normal circumstances, one country should not be long-term large numbers of foreign trade surplus, because the move is likely to cause friction with trading partners. For example, the United States, Japan bilateral relations market fluctuations occur, one of the main reasons is that Japan is a huge surplus situation for a long time. At the same time, a large number of foreign exchange surpluses usually result put the amount of the currency on the market of a country grows, and therefore is likely to cause inflationary pressures, is not conducive to the sustained and healthy development.
Second, our supply capacity is relatively strong. Nearly three decades of rapid growth, and rapid growth of domestic investment, as well as the rapid growth of the international division of labor brought about by foreign direct investment, China's production capacity has been greatly enhanced, and the formation of a strong industrial chain, the more important formation of this production capacity, it is the international shortage or unwilling to operate the processing trade accounted for the proportion of China's exports has reached 60%, enough to illustrate this point.
Third, the international market demand for goods produced in China. Subject to the constraints of the overall level of economic development, labor-intensive, the basic characteristics of China's current production, while trade with our largest of the European Union, the United States, Japan and other economic structure with high technical content is characterized, and our economy has strong complementarity, these three areas and total national economic accounts around the world about 75%, naturally determines the international market for our production of goods and services is also great demand. Fourth, our relatively low production costs and strong competitiveness of our products in the international market. According to the International Organization data estimates that China's manufacturing labor costs equivalent to only 20% -30% of the developed countries, 50% -60% of the Asian tigers, about 50% of the Asian tigers.
In addition, there is a very important factor in world economic growth in recent years relatively fast and relatively fast economic growth, the corresponding proportions plate large, originally the trade surplus may not so much, but because of the world's total economy, corresponding enlarged the amount of the trade surplus. The effects of domestic and international factors, the potential for China to maintain trade surplus in the future is quite large
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