Export trade has contributed to the fast growth and development of different economies like China, the US, Germany, Japan, and France. Firms export their different products to other countries to participate in the international markets and earn handsome money. The export of goods brings foreign exchange to the nation and promotes the economic progress and development of the country. Chinese export statistics of different products to the US in the year 2007. Electrical machinery and equipment have a maximum share of the export products of China. This field has undergone the greatest export growth. Technological development in this area takes place at an extremely fast pace and the electrical products of manufacturers are outdated very soon. This trend makes it necessary for the country to keep up with the developments in technology to maintain its share in the world market. Read about comparison export promotion vs import substitution
Electrical machinery and equipment represented 9. 6 percent of the total Chinese export in the year 1992 and its share rose to 22. 3 percent in 2004 which made it a very significant sector of the overall Chinese exports. On the other hand, China imports more electrical products than it exports. The country’s semiconductor sector is able to fulfill only 20% of the domestic need and the rest depends on the import as shown.
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Chinese Export of Electrical Machinery Equipments. Master Thesis in Economics. Jonkoping International Business School, Jonkoping University, Sweden. Lum, T. & Nanto, D. K. (2007).
China's Trade with the United States and the World. Retrieved 20 November 2008 from http://www.fas.org/sgp/crs/row/RL31403.pdf US-China Graphs (2005).
Retrieved 20 November 2008 from http://www.sierraasia.com/US-China%20Graphs0327.pdf.