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A senior China economist at Citigroup Inc. in Hong Kong, Ding Shuang said, “I don’t see a future for these places if they continue to make low-end products.” According to Bloomberg News, Ding Shuang also reported that, they have to restructure their products and move up the value chain, and that applies to China more broadly.”
At the Yiwu International Trade Mart, a five-story marketplace, a center for the export of cheap products from hair bands to bracelets, this year, and business has almost dried up. The Yuan fell about 2.3 percent against the dollar this year. UBS’ Tao Wang also attributes part of the weakness to the fake data seen last year. According to Business Insider, the impact of the inflated trade data from last year is getting a lot of attention.
Investors are worrying about weak export growth in China. China’s exports unexpectedly tumbled 18.1 percent in February, against expectations for a 6.8 percent rise, according to the New York Times, which swung the trade balance into deficit.
A spokesman at the administration, Zheng Yuesheng, said China’s trade growth may return to “normal” in the following months as the seasonal factors lost their influence. Bloomberg News has reported that, the Chinese government is targeting an export growth of about 7.5 percent in 2014.
Image Credit: www.bloomberg.com
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