Exporting to China

China Export Guide | Trade Finance Global

Exporting to China

Generally acknowledged as the world’s most important emerging economy and already the largest commodity importer on the planet, China has taken up a strong role as a leader in world affairs. As the home of some of the world’s largest banks and other financial institutions it is already the world’s second largest economy.

Investor efforts to arbitrage a gap between offshore and onshore yuan rates has in part led to a capital flight in China, with the foreign exchange hoard having rapidly reduced by $500 billion to just over $3 trillion. There has however been diversification in trade as export shipments have been higher to Hong Kong, rising 8-11% year on year. The United States is a main partner for China and accounts for 3.4 trillion yuan in annual trade.

China Country Profile

Official Name (Local Language) The People's Republic of China
Capital Beijing
Population 1,373,541,278
Currency Chinese Yuan Renminbi
GDP $10,730 billion
Languages Chinese (Mandarin)
Telephone Dial In 86

China Imports Profile

Imports ($m USD)

1,843,793

Number of Import Products

4,433

Number of Import Partners

215

Top 5 import partners

Country

Trade

%

Korea, Rep.

177,553

9.63

Japan

165,794

8.99

Other Asia, nes

155,961

8.46

United States

154,442

8.38

China

132,369

7.18

Top 5 Export Products at HS 6 digit level

Export Product

Number

Monolithic integrated circuits, digital

14.2%

Petroleum oils and oils obtained from bituminou

8.9%

Non-agglomerated iron ores and concentrates

4.1%

Gold in unwrought forms non-monetary

2.8%

Parts of electrical apparatus for line telephon

2.7%

Chart Showing GDP Growth Compared to rest of world

GDP Composition for China

Agriculture

%

Product list

8.6%

Rice, wheat, potatoes, corn, tobacco, peanuts, tea, apples, cotton, pork, mutton, eggs; fish, shrimp

Industry

%

Industry List

39.8%

Mining and ore processing, iron, steel, aluminum, and other metals, coal; machine building; armaments; textiles and apparel; petroleum; cement; chemicals; fertilizers; consumer products (including footwear, toys, and electronics); food processing; transpo

Services

%

Services List

51.6%

Exporting to China: What is trade finance?

Trade finance is a revolving facility which alternative lenders offer – it enables companies to buy inventory and can help reduce the pressure from cash flow issues.

Generally, a trade financier will fund most of the cost of the product, including charges (e.g. insurance costs).

Trade finance offers upsides over more traditional bank finance for example invoice finance or business loans. Trade finance provides up front funding without affecting existing bank relationships.

How does it work?
If you’re an SME importing or exporting inventory around the world, then a trade finance facility would help you to fund this through offering a letter of credit or some form of cash advance.

I’m looking to export to China, how can Trade Finance Global help, and how does it work?
If you’re looking to export stock to other countries, you may require export finance, which is an agreement between yourself (the exporter), and the foreign importer. A trade finance bank would advance you the cost of producing the stock supplies that you are exporting (as a debt product), either once you have sent the goods, or before you have manufactured them. Once your foreign importer has received the products and pays you for the import, you will repay the advance loan from the export bank over an agreed period of time.

Hong Kong Quick Links

Information

China map

Exporting to China? Contact our local experts

China_Flag

China Economic Statistics

Government Website

http://english1.english.gov.cn/

Sovereign Ratings

https://countryeconomy.com/ratings/china

Central Bank

People's Bank of China

Currency USD Exchange Rate

6.626

Unemployment Rate

4%

Population below poverty line

3.3%

Inflation Rate

2%

Prime Lending Rate

2.25%

GDP

$10,730 billion

GDP Pro Capita (PPP)

$14,600

Currency Name

Chinese Yuan Renminbi

Currency Code

CNY

World Bank Classification

Upper Middle Income

Competitive Industrial Performance

28/138

Corruption Perceptions Index

77/180

Ease of Doing Business

46/190

Enabling Trade Index

61/136

Currency in China

About the Author

Natasha Roston is Head of People and Growth at Trade Finance Global (TFG). 

She builds partnerships to create innovative trade finance education projects and experiences. A key advocate for TFG’s annual Women In Trade campaigns, Natasha wrote a piece on the impact of gender stereotypes for gender equality in the workplace in 2022. Natasha is also responsible for TFG careers, culture, and team growth. A Level 2 Qualified Coach and Mental Health First Aid Champion, she leads internal training, supporting the holistic wellbeing of the team.

Before joining TFG Natasha worked in education for over a decade. Initially as a classroom teacher, and then in academic and pastoral leadership roles. Following this, she worked in EdTech as a Learning Design Coach for Aula’s Higher Education platform.

Natasha holds an MA from Tel Aviv University, a History PGCE from The Institute of Education and a BA from the University of Nottingham. Currently, she is studying for her Level 3 Certificate in International Trade from the Institute of Export & International Trade. In addition to her work at TFG, Natasha volunteers for the Young Women’s Trust as a Work It Out – CV Volunteer. 

 

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