Asiatic Sourcing Blog

China Manufacturing Accelerates in Growth

Although various industries are still sluggish in China, a recent survey conducted by HSBC Corp reveals that the country is recovering economically from the 2008 downturn. This is particularly true of the manufacturing sector which is showing its strongest rise since the crisis.

December rates for manufacturing climbed to their highest point within the past 18 months. Also, the manager’s index of monthly figures came in at 51.1 percent which is the highest figure that sector has seen since May of 2011. The index scale of 100 points determines growth when the figures pass the 50 mark. November’s figures for the same index heralded a slight expansion with a showing of 50.5.

There are more bright signs on the horizon for those doing business in China. The current momentum is expected to continue throughout 2013 as construction on infrastructure projects ramp up and conditions in the property market regain a positive foothold, both of which provide those seeking China sourcing a breath of relief.

Due to such growth indicators, China is expected to reach 8.6 percent by the end of the year. The 2012 year was being forecast by the International Monetary Fund to reflect the country’s weakest period of growth at 8 percent since the later part of the 1990s so the country slightly outperformed IMFs expectations. Even though low by recent Chinese standards, 8 percent still remains well above Western outputs that are continuously being hampered by the economic crisis. China had forecast reaching an optimistic 10 percent, but fell well short of that figure.

However, weak demand globally, much of which is due to the economic mess, has severely dropped Chinese exports to those who buy from China. December export numbers are expected to be even lower than November which saw a dive to 2.9 percent from 11.6 percent the previous month.

The drop was mostly due to weaker demand from the U.S., Japan, and Europe. The forecast for low new export orders is increasingly compounded because of a variety of market uncertainties on the horizon such as the looming U.S. “fiscal cliff” that would trigger possible automatic spending cuts and tax hikes, placing increased financial pressure on those consumers.

Although companies reported a slight surge in new orders in December in response to the survey conducted by HSBC, 12 percent of Chinese companies said that new orders from exporters decreased somewhat. Chen Deming, China’s commerce minister, earlier trumpeted that same concern by giving a grave announcement in November, telling Chinese exporters that a large number of difficult hurdles would be facing them into the 2013 year and possibly throughout.

With the exception of exported items from China, the country appears to be “back in the saddle” as far as internal manufacturing and economic recovery. China products may sluggishly flowing out of the country, but they are definitely finding more appeal to the rapidly growing Chinese middle class that continues to excel at liberal spending and is rapidly becoming the largest economic driver of the world. Such consumer spending combined with infrastructure growth are driving the economy upward.

Global Sources’ China Sourcing Fairs Finds Success in Africa – TSNN Trade Show News (blog)

The China Sourcing Fairs are exclusively for importers, traders, and other volume buyers who purchase consumer products for resale to markets throughout Africa. Last year, more than 7,000 qualified buyers attended the event, a 20-percent increase, compared with the inaugural events. is a powerful international trade show gateway. We’ve spent years compiling a global, qualified and up-to-date trade show database, including attendees, suppliers, vendors and exhibitors, outside North America.

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Start Importing from China: A Practical Guide to Sourcing Suppliers, Setting Up Contracts, and Logistics

Do you want to learn how to import from China to America? Then, you should read this book. “Start Importing from China” is a concise and practical guide, which will walk you through the major steps of sourcing goods from China and importing them to America. You will learn how to find factories and suppliers in China, how to set up manufacturing contracts that have good terms for you, and handle the logistics of getting your goods from a factory in China to a warehouse in America.

Do you want to learn how to import from China to America? Then, you should read this book. “Start Importing from China” is a concise and practical guide, which will walk you through the major steps of sourcing goods from China and importing them to America. You will learn how to find factories and suppliers in China, how to set up manufacturing contracts that have good terms for you, and handle the logistics of getting your goods from a factory in China to a warehouse in America.

Source: Amazon

China’s manufacturing grows in November

Analysts have cautioned that a Chinese recovery is likely to be “L-shaped,” meaning the decline might have stopped but improvements in growth should be gradual. That would be a setback for exporters of commodities and other goods that are counting on China to help drive a rebound in global demand.

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China Federation of Logistics & Purchasing:

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China’s manufacturing grew in November in the latest sign the world’s second-largest economy is recovering from its deepest slump since the 2008 global crisis, a survey showed Saturday.

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China’s Overproduction of Solar Panels Floods Market


Solar panel technology has been enjoying an increase in use over the past several years and, therefore, higher sales around the world have been a result. China manufacturing companies of solar panels have been turning them out beyond capacity on the anticipation that customers will buy from China rather than manufacturers in other countries such as the United States.

However, this plan has backfired causing a flood in supply that has surpassed demand. China’s overzealousness in producing solar panels has hurt the sales of two of the top U.S. manufactures, First Solar Inc and SunPower Corp. These giants of solar panel production are being forced to lower prices and reorganize and smaller manufacturers are being driven completely out of business.

SunPower announced the beginning of November that it was looking to reduce its operating expenses by up to 10 percent by 2013 due to the current market flooding. For the same period, First Solar said it will consolidate its manufacturing process in order to reduce supply. These two solar panel producers have both decreased future profit forecasts, as has the one of the leading polysilicon producers in the U.S., MEMC Electronic Materials Inc.

On top of the slimming by top U.S. manufacturers of solar panels, three others have filed for bankruptcy in 2012 due to the overproduction by the Chinese. One of those affected is Solyndra LLC.

It’s not just U.S. companies that are feeling the sting, but China products based around solar panels are also seeing a decline in sales. China Sunergy Co, one of the largest solar panel producers in that country, released a November report stating that in the third quarter they saw their gross margin sink into the red. They said that their previous forecast of 4 to 5 percent in the black would be replaced with an outlook diving to around minus 14 percent. The company said that it expects to reduce shipments to clients doing business in China from its anticipated 140 megawatts or more down to around 115 megawatts.

Early data gathered by Bloomberg had analysts looking forward to a five cent income on SunPower shares. However, the third quarter instead saw a drop of $3.77 per share due to the surge in solar panel production with the company having to writedown its almost $350 million goodwill. Such a move was taken in order to bring about a change in the solar sector due to overzealous China sourcing by manipulating the valuation of the public market.

SunPower will seek to prioritize investment resources and shed positions within the company that are redundant as a part of their restructuring plan. Their prospective goal is to carve away around 10 percent from the operating expenses of their non-manufacturing portion of the company by the end of 2012.

First Solar, on the other hand, has announced a delay in the completion and start-up of their Vietnam factory which was under construction. The company, which is the largest thin-film solar panel producer in the world, says that further development of the Vietnam factory will remain on hold until demand catches up to current output when the new factory’s capacity can then be justified for use.

Tour in China-Tengchong Jade

Jade is the cream of gems. Tengchong is the origin of Jade. Located in the western foot of Gaoligong Mountain in the west part of Yunnan province, China, Tengchong is a time-honored city of several thousand years. Its long history of manufacturing and trading Jade in large scale brings its fame as a Jade City.

Source: Amazon

China manufacturing data add to evidence of pick-up in economy

The Shanghai Composite Index jumped more than 4 percent, although the gain was fuelled largely by speculation of state-backed buying of mainland markets.

Image source: https://telegraph.feedsportal.c…

China’s vast manufacturing sector expanded in December at its fastest pace in 14 months as new orders and employment rose, a survey showed on Friday, adding to evidence of a pick up in the economy that helped to boost market sentiment.

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Sourcing Smarts: Keeping it SIMPLE and SAFE With China Sourcing and Manufacturing

Critical Information on the Consumer Product Safety Improvement Act all about manufacturing a SAFE product! It even includes a section on how to market your new product!

Sourcing Smarts: Keeping It SIMPLE and SAFE with China Sourcing and Manufacturing – 2nd Edition Now Includes CPSIA Product Safety Info! By Edie Tolchin, The Sourcing Lady SM, 30-year China sourcing veteran, with Don Debelak and Eric Debelak, is a no frills, do-it-yourself guide to China sourcing and manufacturing, geared towards inventors, first-time importers and entrepreneurs. It’s a China Sourcing 101-type manual in easy, no-nonsense language, covering everything you will need to know to get your products sourced, made, and imported from China. Real-life inventor stories are included. Now featuring: Safe or Sorry? Critical Information on the Consumer Product Safety Improvement Act all about manufacturing a SAFE product! It even includes a section on how to market your new product!

Source: Amazon

Sina Weibo – China’s Social Network Provides Business Linking Outlets

sina seibo

Affectionately referred to as China’s version of Twitter, Sina Weibo leads the way in social media outlets which have seen a huge explosion over recent years. Social interaction among the Chinese has multiplied much farther than anyone had anticipated, creating an online atmosphere that has spread far and wide throughout the country.

Weibo itself has netted 300 million of the 540 million people who are now connected via Chinese internet portals. What’s more, it continues to see continued growth as even more individuals, organizations and businesses via domestic and China sourcing avenues find creative ways to use the provided services.

How Weibo Went from Joke to Credible News Outlet

Beginning much like a mirrored image of its counterparts in the West with casual conversation, lame jokes and celebrity gossip, Weibo excelled as a serious debate venue when one of the highest ranking members of the central Party, Bo Xilai, was ousted as chief of the Chongqing Party in March of 2012. A barrage of chatter erupted on Weibo and other social network sites as to the reasons behind the boot.

As a result, the Chinese leaders rushed in to quell the speculations by censoring the various sites. However, the power had already been unleashed and several days after the censorship, major newspapers owned by the state printed boisterous headlines stemming from social network discussions. Since this event, Weibo’s role as a real time news source has growth exponentially with savvy Chinese internet users exposing the follies and corruption of what used to be a very secretive society.

Organizations and Businesses Jump On the Bandwagon

China has a large and widely dispersed population that continually experiences a variety of economic, social and natural woes. These needs are often overlooked or outright ignored by the government.

However, organizations and businesses are realizing the power of the growing social media sites within China and are beginning to harness that power for the greater good of the Chinese citizens. During this year, programs run by NGOs have grabbed the reins to better serve the masses and are experiencing good results.

For example, a Chinese journalist started a Free Lunch program and is utilizing Weibo as a means to attract donations to feed hungry school children. The program has already been used to feed more than 25,000 students in rural areas. Another successful campaign has reunited victims of child trafficking with searching parents by using Weibo as a platform to post photos of street children begging for money, a common con method used by the abductors.

Those doing business in China are also beginning to see the marketing potential of Weibo and other social media sites. Just as such sites are utilized in the United States and other Western countries to link businesses with clients and customers for more productive business relations the same is being explored by China manufacturing and other firms. Businesses can not only establish relations conveniently via China’s web, but they can also seek out potential markets that want to buy from China, lure qualified applicants from greater distances, and conduct helpful market surveys, all by accessing social media sites like Weibo.

Fabrication Demand Boosts China to Largest Silver Market Status

china ecomomy

The Silver Institute based in Washington D.C. has issued a report stating that China is now the largest silver supplier to the world market. Demand for Chinese silver in futures, personal investment, and manufacturing use jumped by over 100 Moz (million ounces) within the previous 10 years with 2011 producing a record demand of 170.7 Moz.

China recognized its silver potential early on and began opening up investment opportunities in 2000 to allow more sellers of silver to hook up with silver buyers wanting to buy from China. Then, in 2009, the Chinese placed bars of silver bullion on the market and within a two-year period investors snatched up over 17 Moz of silver coins and bars, according to a Reuters report.

Two other driving factors in the rise of the country’s silver dominance are the country’s increased infrastructure investment and demand from China manufacturing sectors, both of which require large amounts of silver to complete their objectives. Over the past decade, there has been a 77.1 Moz increase in the amount of silver required for fabrication due to a continuous 135 percent growth in the industrial manufacturing sector.

The largest share of that growth came from the electronics and electrical components sector, mainly via the demand through China sourcing for semi-conductors, with a 2011 increase to 40 Moz compared to a 2002 consumption of only 17.1 Moz. Silver applications in the industrial sector that have seen large increases in computer and cell phone demands accounted for a 2011 increase of 56 percent in those areas of fabrication that required 159.5 Moz.

Other manufacturing drivers that are responsible for the sharp demand in silver and its subsequent rise in value are increased demands for China products like personal electronics. The leaders of such consumer-desired items have included televisions containing backlighting of LEDs (light emitting diodes) and tablet computers made by companies doing business in China as well as internationally.

In May of 2012, China sought to provide further direct market access by offering silver contracts on the Shanghai Futures Exchange. These contracts specified 15 kilos as the standard trading units with a 5 percent high or low daily price limit from closing price of the previous day. This was for the purpose of providing a hedge to domestic investors as well as set a pricing standard and ease silver volatility in the market.

Since the introduction of silver, Shanghai Futures Exchange has catapulted to the second largest silver futures trading exchange in the world. New York’s Comex is the only other market remaining ahead of them.

A large portion of the success of the Shanghai exchange stems from a brokerage services being offered by a growing number of commercial banks to their clients. Also, providers of wealth management services are more frequently recommending silver as important inclusions in portfolios as silver is considered to have better leverage than gold.

By the end of 2011, China’s global supply of silver increased to 281.5 Moz which is 14 percent of the world market. That is up from 94.2 percent which the country held at the ending of 2002.

During the same period, global demand for Chinese silver rose by 154 percent to 170.7 Moz ending 2011 from 67.1 Moz ending 2002.

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