Trade Exports to See Tougher Year Ahead
The export trade in the city will be seeing a tougher 2014 as increase in operation costs and a stagnant demand in foreign markets is seen. The total import and export revenue in 2013 was expected to top US$ 500 billion with around US$ 300 billion was attributed to exports, but the figure might keep Shenzhen on top of other mainland cities.
Customs data shows that for the first 11 months of 2013 the export and import trades in the city has generated around US$490 billion or a 18 percent increase compared to the same period of 2012. Shenzhen has outperformed other Chinese cities or 13 percent of the national total for the same period. For the past 11 months the export trade in the city had total revenue of US$ 277 billion which increased 15.5 percent from 2012, while the city import trade totaled US$ 212 billion an increase of 21 percent from 2012. But even with the increase both the export and import has shown slow growth speeds.
The slowdown of Shenzhen’s exports was due to the appreciation of the RMB that was paired with the slack demand in developing countries that experienced slow economic recoveries. Several companies are still facing challenges in looking for employees as labor costs has increased 30 percent from 2012 as costs of raw materials has also increased 10 percent from 2012.
For 2013 Shenzhen’s main export trade consisted of mechanical and electrical products still takes the biggest share of the export and import trades as exports of mechanical and electrical products tool in US$ 212 billion or 76 percent from January until November. While the electrical and electronic products totaled US$ 142 billion in export revenue from November an increase of 37 percent compared from the same period in 2012.