Risings Costs Squeeze Chinese Auto Exports

11 September 2008

In the past year, the dollar has dropped 11 percent against the Chinese yuan, making Chinese goods more expensive for U.S. companies. Skyrocketing fuel costs have boosted shipping costs. Labor costs are rising. And in the summer of 2007, the government slashed state subsidies on thousands of exports.


    
The stress is showing, although the data are mixed. The value of auto parts shipped from China to the United States dropped 4.7 percent to $3.27 billion (22.38 billion yuan) in the first half of this year, compared with the same period of 2007. In the same period this year, exports to Europe rose 15.7 percent to $2.04 billion (13.96 billion yuan), says the China Association of Automotive Manufacturers.


    
Suppliers say China is still an attractive place to source many parts because of cheap labor and abundant manufacturing capacity. Although wages are increasing, worker productivity is, too - and often at a faster rate.

 

Source : english.chinabuses.com

Editor : James

Views:4217

Tags: Costs Auto Exports

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