In the wake of the start of the economic crisis last year in 2008, China has seen a large transition in its importation of goods both internationally and domestically. This has resulted in a big problem on cities including Shenzhen, Guangzhou, and Shanghai which are all primary export cities throughout the East Coast which have helped to expand China's expansion into some countries in the west. Starting in the first quarter of 2009, Shanghai experienced a decrease of 15 percent year after year, with the volumes of international freight in Guangzhou experiencing the worst decline of 25 percent and Shenzhen following up with a mid 21 percent based on reports from leading global analyst businesses including Forbes and Bloomberg.
However, as a result of the fact that the domestic trade between the North and South has increased considerably, this hasn't had much of an impact on the economy in China. For example, freight from northern China to Dalian has increased by as much as 50 percent year after year and other ports in the north are also showing growth as a result of the strong demand domestically. This is happening while China is transforming to a consumer marketplace from a society that depends on exports and has also emphasized its 8 percent growth economically this year alone in spite of the economic crisis that is gripping the world.
What this means for the people who want to outsource to local factories or export Chinese products is that with less freight there are reduced shipping costs from the previous charges, which permits both larger and smaller businesses to take advantage of the markets that are affected. This also signifies a strong growth of the economy in China, which indicates that any investment in China now could greatly profit these businesses in the long term.
This is also an excellent opportunity for businesses to look for expansion overseas that have usually conducted business domestically. Now is an excellent time to invest in both internal production centers including those in the provinces of Guangdong and Shenzhen so that they can realize the most gain and in the coastal financial centers like Shanghai.
The bottom line is that in both the outsourcing and manufacture of products in the near future as opposed to the far future and the possible expansion overseas into the marketplace in China might hold profitable opportunities for businesses all around the world.
However, as a result of the fact that the domestic trade between the North and South has increased considerably, this hasn't had much of an impact on the economy in China. For example, freight from northern China to Dalian has increased by as much as 50 percent year after year and other ports in the north are also showing growth as a result of the strong demand domestically. This is happening while China is transforming to a consumer marketplace from a society that depends on exports and has also emphasized its 8 percent growth economically this year alone in spite of the economic crisis that is gripping the world.
What this means for the people who want to outsource to local factories or export Chinese products is that with less freight there are reduced shipping costs from the previous charges, which permits both larger and smaller businesses to take advantage of the markets that are affected. This also signifies a strong growth of the economy in China, which indicates that any investment in China now could greatly profit these businesses in the long term.
This is also an excellent opportunity for businesses to look for expansion overseas that have usually conducted business domestically. Now is an excellent time to invest in both internal production centers including those in the provinces of Guangdong and Shenzhen so that they can realize the most gain and in the coastal financial centers like Shanghai.
The bottom line is that in both the outsourcing and manufacture of products in the near future as opposed to the far future and the possible expansion overseas into the marketplace in China might hold profitable opportunities for businesses all around the world.
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