Chapter 4
Where China Is Leading and Where It Is Not
However, China does not lead in manufacturing production and exports all across the board. Also, the range of its exports lead is narrower than the range of production lead because in many industries the increments in production are absorbed by the rapidly expanding domestic market. Besides, the rise in exports is supported by a dynamic growth of the imports of production inputs: intermediate products and equipment. Depending on China’s position versus other major producers and exporters, all manufacturing industries can be divided into three groups.
Group One Industries: China Is the Top Producer and the Top Exporter
This group of industries consists of two major pillars. The first one is the office and telecommunication equipment sector, along with electrical machinery. The second is a variety of light industry goods: textiles and clothing, footwear, toys and games, travel goods, furniture, travel items, and so on.
In the 2000s, these sectors’ production in China increased dramatically, while in the West and other major producing nations, mainly Asian, it grew at a slow pace, stagnated, or declined. As a result, China established itself as the number one producer and exporter, often running far ahead of all followers.
Office and Telecom Equipment, Electrical Machinery
The most vivid example is the office and telecommunication equipment sector. According to the UN Standard International Trade Classification (SITC), Revision ...
