China exports up, imports down but opportunity for internet imports
Exports to Europe from China this June increased to 43 per cent year-on-year with an increase of 44% to the U.S as the widely anticipated slowing of growth globally leaves China unaffected. China have recorded another increase in their exports last month in comparison to the same period last year. Already achieving a surplus of $19.5bn in May, June has stacked up an additional $20bn.
The Chinese central bank issued a statement on June 19 signalling the end of the peg to the US dollar. The RMB value has increased 0.77 per cent against the dollar since then, however many global economist see the Chinese currency as undervalued. Last week’s U.S governmental report states that the Chinese renminbi currency “remains undervalued”.
Imports however fell from May’s level of $48.3 to $34.1 in June. Experts believe this could be as a result of intervention domestically to reign back the property market. This affects the demand for raw materials as property and infrastructure development slows.
Despite this, appetite for consumption via the internet remains high, and could represent profitable business for those who choose to take advantage of the market. Even in the depths of the global economic slowdown, the number of online shoppers grew 46% in China to $108 million, with online sales doubling to $36.6 billion.
Optimism has been dampened recently as, in an effort to control the sale of illegal and counterfeit goods online, the “Interim Measures for online commodity trading and related services” came into being on July 1. China’s State Administration for Industry and Commerce (SAIC) now require internet businesses to register “real” personal details, addresses, possession of a National Citizen’s Identify Card and genuine business licenses. Many Chinese online market places are well known for fake and illegal products.
Even though consumer goods traded on the internet are now subject to these new laws this month, an opportunity exists for genuine products which command authenticity. Western retails that manage to access online markets and deliver credibility in the authenticity of their products could have a bright future.
| 
