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Thursday, December 15, 2005

China Surpasses US & EU In Exporting Information Technology Goods

IBD points out that China,the world's No. 7 economy exported $180 bil in information and communication devices such as laptops and mobile phones in 2004, surpassing the U.S., with $149 bil, as No. 1, as per the Organization for Economic Cooperation and Development. China, the world's No. 2 computer market, is shifting its supply base from reliance on Europe and the U.S. to Asia. The report highlights thatChina overtook the United States in 2004 to become the world’s leading exporter of information and communications technology (ICT) goods such as mobile phones, laptop computers and digital cameras. China’s share of the world’s total trade (exports plus imports) in ICT goods has grown rapidly. Worth less than USD 35 billion in 1996, China’s ICT goods trade reached almost USD 329 billion in 2004, growing at almost 38% a year since 1996. Bilateral trade data between China and the United States, for instance, show large Chinese surpluses in computer & related equipment and less important deficits in electronic components. It is also notable that electronic components themselves form the second biggest Chinese export item. On the import side, the rapid import growth of electronic components continues, albeit at a somewhat slower path than export growth of computer & related equipment. Will this follow – highly unlikey for a variety of reasons.

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