China’s export mix and target region shifts and global impact

An article in Bloombergbusinessweek (April 9,2012) describes a shift in China’s exports towards heavy machinery, cars and ships from shoes, consumer electronics and clothing. Inland locations with abundant labor, targeted government loans and a focus on emerging markets like Brazil and India have resulted in a decrease in exports to Japan, US and Europe from 56% down to 48%. Chinese companies have a 41% share in ships, and the composition of heavy equipment in exports has increased from 29% to 39 %. How will US companies like Caterpillar and GE be impacted by these changes ? How will the lower priced Chinese capital goods increase the competitiveness of emerging economies ? Will Chinese financing of these purchases increase overall manufacturing global competitiveness ?

About aviyer2010

Professor
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