CHINA BECOMING WORLDS LARGEST ELECTRONICS EXPORTER
In a recent report released by the IMF, China was named the world’s second largest economy with a GDP of over 10 trillion USD. The electronic sector of the Chinese economy is experiencing a boom. With new firms joining the market on almost a monthly basis, causing the prices of electronics products in china to drop consistently due to the increasing supply in the market. For some decades now, China has topped the list of largest electronics exporter of the world with a total of almost $1.9 trillion of electronic exports mainly to the western countries, the Middle East and the sub-continent.
History of electronics industry in China:
The electronic industry in China grew exponentially after the economic reforms brought in by Deng Xiaoping, the leader of the communist party in China, in 1958. These reforms included the Chinese economy to become a more free market economy by privatizing firms and making the currency free floating and self-determined. The manufacturing sector benefitted the most from these reforms and grew quickest compared to all other sectors. By 2005, electronic industry made up almost 17% of the country’s GDP and China started extensive research in this particular department. This can clearly be seen by the fact that china was named the world’s largest market for personal computers in 2011.
Largest electronic companies in China:
- Changhong: This electronic company based in Mianyang region was founded in late 1958. Changhong produces the second highest amount of televisions in China and produced 90% of the total televisions exported to the United States lately. Employing more than 40,000 people, Changhong is one of China’s electronic tycoon
- Haier: Famous for its home appliances, Haier group is one of Chinas largest electronic This multinational company produces air conditioners, refrigerators, televisions, washing machines and microwave ovens. Recently, Haier started producing mobile phones and tried getting a share in the smart phone industry but couldn’t do really well. Since 2008, Haier has had the worlds largest market share for home appliances mainly, refrigerators and washing machines.
- Huawei: In 2012, Huawei took over Ericsson to become the world’s largest telecommunication equipment manufacturer in the world. Huawei mainly focuses on research and development as almost half of its total staff of 170,000 works in the R&D department. Having 21 R&D institutes across the world, Huawei spend a fortune on research in order to improve efficiency and launch next generation products in the competitive Chinese market.
CHINAS TOP ELECTRONIC EXPORTS:
- Phone Systems: China has forever been famous for its low price, low quality products, but the Chinese government demanded all smart phone companies in China to improve quality of the smart phone produced in the region. The Chinese smart phones such as Huawei and Qmobile give high competition to renowned brands like Apple and Samsung in the sub-continent. In 2015, mobile phone exports from China amounted to almost $215 billion.
- Computers: Computers are the seventh most traded product in the world and china is one of its highest exporter. Total Chinese computer exports made a total of around $150 billion with most number of computers exported to Japan, Australia, Gulf region and the sub-continent