Deloitte - Express China News, Issue No. 05-4

Deloitte - Express China News, Issue No. 05-4 - Home...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Home Subscribe Unsubscribe Privacy Chinese Services Group Express China News Issue no. 05-4 In this issue Commentary Facts and figures Government Agriculture, food and forestry Automobile Banking, finance and insurance Consumer/Retail markets e-Business Economic facts Environmental projects Health care Manufacturing Media and communications Mining and resources Power/utility/ infrastructure projects Real estate/construction Technology and telecommunications Transportation, travel, tourism and leisure Deloitte & Touche in China related activities/projects Contacts Loretta Yuen Editor (416) 601 6222 Advisory Board Randall Chan Todd Genton Gary Nott Paul Siu Joseph Tse Brent Wyatt Smell of burning leather alerts Chinese to need for "win-win" trade policies Four years after it joined the WTO, mainland China is facing resistance to its trade power throughout the world. China has a lot to sell that consumers want to buy and that has spurred forces of protectionism within the U.S. and EU. Exports account for 30% of China's GDP, compared to 7% of GDP in the U.S., so exporting goods is critical to its long-term plans for economic growth and prosperity. But trade disputes are inevitable. China has been the most frequent subject of the new investigations by the WTO in the last four years. It faced 22 disputes directed at its exports during January-June 2005 compared with 25 during the first half of 2004. And it launched 11 new cases itself against its trading partners. Shoes, textiles and clothing are particular irritants, with EU quota disputes still fresh in the memory. China's exports of clothing and related accessories grew 22% to US$54.54 billion in the first nine months of the year, textile-related product exports rose 24.8% to US$30.45 billion and shoe exports increased 26% to US$14.19 billion. South Africa's shoe industry is complaining to its government that it is under siege from an influx of cheap shoes from China. Chinese companies, inexperienced in the way the world does business, don't always get it right – they may be pricing goods too low or moving too quickly in markets they don't understand. After a group of demonstrators burned a shoe warehouse full of shoes in Spain last year, Wenchou manufacturers who had been supplying the shoes learned they had to use a more diplomatic approach in doing business. "The fire in Elche a year ago has awakened us to be aware of the importance of achieving a win-win deal for all partners concerned. The benefit-sharing mindset is conducive to removing barriers in international trade, " said Xie Rongfang, secretary-general of the Footwear and Leatherware Association. New ways to give and take The give and take works in unexpected ways. German automaker Volkswagen AG 's Mexican unit is shipping auto parts to China so that Volkswagen factories in the mainland can assemble the Bora model. This broadens the export potential for the Mexican plant, where layoffs had been anticipated. Indonesia's business community is expecting
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/05/2011 for the course BUSINESS 404 taught by Professor Kast during the Spring '11 term at Wilfred Laurier University .

Page1 / 20

Deloitte - Express China News, Issue No. 05-4 - Home...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online