Higher domestic demand, supported by growing consumer spending and household consumption, fuelled the imports in China by 30.6% in the first six month of 2008.
According to the General Administration of Customs, the imports in China during the first six months of 2008 posted a YOY rise of 30.6%, reaching US$ 567.57 Billion over the same period last year, as reported by Forbes.
The General Administration of Customs also said that the imports in June 2008 reached $100.18 Billion, a YOY increase of 31% against $100.29 Billion in May 2008 and $102.03 Billion in April 2008. Moreover, the imports of iron ore rose by 22.5% to 230 Million Tons during the period January-June 2008, while imports of machinery and electronic products and crude oil plummeted by 18.9% to $265.38 Billion and 11% to 90.53 Million Tons respectively. The automobile imports also boosted by 53.2% to 212,000 units during the review period.
The upsurge in the Chinese import industry during H1 2008 was due to soaring domestic demand. Key boosters to the import industry – household consumption, infrastructure development and consumer spending – are rising in the country, thus giving impetus to the domestic demand. Besides, the price differences of essential commodities in the international market to the Chinese domestic market also supported growth in the import industry.
Furthermore, the strengthening of Yuan against the US dollar which has forced the overseas companies to export maximum to China and hence the imports in the first half of 2008 augmented substantially.
However, the industry analysts are expecting downfall in Yuan against the US dollar in the second half of 2008, which would cut down the consumer spending and decrease the domestic demand. With fall in the domestic demand, the imports in China might come down in coming months.
According to a Research Analyst at RNCOS, “The Chinese import industry is riding high on the back of surging domestic demand. Importers are trying to make more profits from the current situation as the economy is offering better business environment. However, the challenge of hike in the Chinese currency could adversely affect the import industry in coming months as it has increased the threat of inflation. Higher inflation will retard the economic growth of the country, thus dampening the enthusiasm of foreign investors.”
Related Market Research Reports:
China Steel Industry Forecast till 2012
China Automobile Sector to 2010
China Tourism Industry Analysis (2007-2011)
