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Change in pattern of China's export growth
Oct '11
There is a change in pattern of China's export growth driven by coordination of price and volume. China's average export price grew 10.3 percent during the first eight months of 2011, while its volume of exports also rose 12.1 percent. However, the rise in price in exports was higher compared to the corresponding period of 2010, while the rise in volume was lower compared to last year.

This feature is more visible in labour-intensive products like textiles and apparel. While the average price of textiles and apparel products rose by 24.7 percent in July, the volume of exports increased only 0.9 percent. That is, the increase in price level is much higher compared to the growth in volume.

In contrast, for less labour-intensive industry like shoes and hats, the average export price rose 18.5 percent, while volume increased by 1.3 percent. Thus, the difference between the growth level in price and volume is less compared to textiles and apparel.

Another change is the rapid growth in Chinese exports to emerging markets this year. While the Chinese exports to its traditional major trading partners have remained steady, its proportion of exports to emerging markets has improved substantially. This can be seen from the fact that the growth of China's exports to ASEAN, India, Russia, Brazil and South Africa was higher than China's average export growth in general from January to August 2011.

In fact, ASEAN's position as the third largest trading partner of China has further consolidated, with bilateral trade surging to US$ 234.61 billion, up 26.6 percent year-on-year. While China's exports to ASEAN increased by 24.3 percent, imports rose by 28.6 percent year-on-year.

Fibre2fashion News Desk - China

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