subject: Himfr.com Reports China Took Over The Mantle Of The World's Top Exporter From Germany [print this page] China took over the mantle of the world's top exporter from Germany in 2009, according to the latest figures, helped on its way by a global
economic crisis that has taken a greater toll on other trading powers.
China exported $957 billion of goods in the first 10 months of 2009, compared with $917 billion for Germany, according to data compiled by Global
Trade Information Services, a Geneva-based firm that collects and tabulates customs data. No November or December developments are likely to
overturn the Chinese lead, trade experts say.
China had long been expected to become the world's largest exporter, with annual growth in exports regularly exceeding 20% in the past decade.
'China's overtaking Germany on exports was only a matter of time,' said Mei Xinyu, who works for a think tank affiliated with China's Commerce
Ministry.
Douglas Irwin, a professor at Dartmouth College, said 'China has been growing much more rapidly than Germany on all sorts of dimensions and has a
population of 1.3 billion, while Germany has 83 million.'
China's ascendancy has been boosted by the financial crisis, from which China has suffered less than other major economies. With trade in tatters
around the world, Chinese exports fell 20.4% during the first ten months of 2009, compared with 27.37% for Germany and 31.09% for Japan. U.S.
exports dropped 21.37%, with the weak dollar making U.S. goods cheaper and preventing a steeper fall.
A combination of factors account for China's relative resilience. The Chinese currency is tied to the sinking dollar, helping to keep China's
exports competitive on price. By contrast with Germany, China also produces many low-cost goods that are relatively recession-proof. 'The demand
for low-end and labor-intensive products is relatively stable,' said Shen Minggao, chief China economist at Citibank in Beijing.
'Most of the products China produces for the global market are life necessities,' less affected by the financial crisis, says Huang Huigu, CEO of
Kingsons International, a Guangzhou-based exporter of leather bags.
To be sure, China's export prowess 'is not speaking to how important and powerful Chinese companies are on their own,' says Scott Kennedy, a China
expert and political scientist at Indiana University. Sixty percent of the country's exports come from companies owned by foreign investors, he
says.
The last decade has seen a sea change in global trade. Until as late as 2002, the U.S. was the world's leading exporter, before Germany claimed the
top spot in 2003. At the time, China -- which joined the World Trade Organization in 2001 -- was fifth, behind Japan and France. In 1997, China had
been tenth, also trailing Canada and a host of European countries.
For Germany, the ascendance of China has been a double-edged sword. The country is 'our biggest competitor but also our most dynamic market,' says
Jens Nagel, a trade expert with the German Exporters Association.
'We were proud to keep the ceremonial title of world export champion six years in a row, but now China has taken the lead,' Mr. Nagel adds.
He cites the strong euro and the financial crisis among reasons behind the change. The association expects German exports to grow 10% in 2010. 'It
won't take us back to 2008, but the worst is over,' says Mr. Nagel.
