Challenges of Yiwu China

Challenges of Yiwu China

Source: www.AmandaIEC.com AmandaIEC, professional Yiwu Agent, leading Yiwu Trading company and China wholesaler.

Yiwu city, is famous in the world for its biggest small commodity wholesale markets and tremendous goods.

There are 200,000 businessmen arriving in the city, the country’s largest small-commodities wholesale market, every day to seek their property dreams with a daily cash flow of 287 million yuan (US$34.5 million).

The products in Yiwu market are exported to over 200 countries and regions. With 320,000 kinds of commodities in over 1502 categories of 34 industries including nearly all everyday household items imaginable from embroidery needles to athletic socks.

But challenges still exist on the way to Yiwu’s dream with an increase in international trade barriers.

Yiwu enterprises are threatened by anti-dumping charges which could occur anywhere in the world on any products.

The Yiwu-based Zhejiang Mengna Knitting Co Ltd, a major sock exporter, is one of them as the United States is on the way to imposing quota limits on Chinese sock exports. The US textile industry petitioned the Bush administration in July to curb the import of socks from China. The US Department of Commerce has been conducting an investigation and a final decision is expected to be made later this year.

Lu Sanhao, executive vice-president of Mengna, which has a large exposure to the US market, said the company is closely watching the appeal. “The US trade limits will cut our total exports by one third as the United States is our largest overseas market,” said Lu. He said the company never competes with unreasonably low prices. Instead, export deals have been made because of the company’s timely deliveries, high quality and good service.

Although the company will not collapse if the US limit is applied, it is planning to make more efforts to tap other international markets and expand domestic sales. To make their international trade smoother, the company is also trying to pass accountability certification.

Social Accountability 8000 is a set of voluntary labour standards initiated by the US-based Social Accountability International (SAI) in 1997, which ensures that retailers, brand companies, suppliers and other organizations maintain just and decent working conditions throughout the supply chain. More Chinese firms are told by their European and US clients they should meet these criteria before they can will conduct business.

Lou said the local government has been telling local vendors and enterprises to enter the international market by abiding by the rules of the World Trade Organizations (WTO).

Local businessmen are invited to attend classes about WTO rules, commercial English and Internet use with all costs covered by the government.

But Lou said if any antidumping cases occurred, the government will unite the industry associations and enterprises to respond to the appeal.

“We believe the government will take some measure to protect our interests,” said Lou.