China is one of the most rapidly developing global players in the international economy. With a population in excess of 1.3 billion, approximately four times the size of the United States and geographically similar in size, China has been described as a sleeping giant of international trade. In 2005 China claimed and estimated 752 trillion dollars in exported goods, just shy of 927 trillion exported by the United States. In 2006, this number is expected to increase dramatically.
What percentage of Chinese exports come to the US?
Because of the reduced production costs associated with Chinese origin commodities and the infrastructure to effectively produce many of the most sought after goods in the US, the United States remains the largest importer of Chinese goods. The US alone imports 21.4% of Chinese exports compared to their next largest trading partner Hong Kong which imports 16.3%.
What should I import from China?
China’s primary export commodities include machinery and equipment, iron and steel, medical and optical equipment, and plastics. The Chinese have significant natural resources at their disposal as well as the manpower to manufacture large quantities of refined and unrefined goods.
What are China’s quota restrictions?
To avoid market disruptions from the over-importation of Chinese origin goods, China and the United States have entered into a voluntary agreement to limit the amount of goods (primarily textiles from chapters 50 to 63 of the US Harmonized Tariff Schedule) that may be imported into the US from China. Textiles leaving China must have an endorsement in the form of a visa from the Chinese government in order to obtain import clearance by US Customs and Border Protection. Information regarding the status of textile safeguards from China may be obtained from the Office of Textiles and Apparel.
Is China at risk for anti-dumping?
Yes. China is involved in the largest number or anti-dumping cases over the past few years. Anti-dumping is the practice of importing goods at below fair market value in order to drive competitors out of the marketplace.
How can I meet Chinese exporters?
Fortunately for US importers, Chinese exporters make an effort to seek out international business partners and are active users of the internet. Prospective importers can make industry contacts on message boards like the Informed Trade International community forum, or on other websites designed to help importers and exporters meet. Some resources we found included: