UBS Raises China 2018 GDP Growth Forecast

As China plays a bigger role in the world market both in imports and export, expectations of its economy continue to rise high.

Swiss bank UBS has upgraded its forecast on China's 2018 gross domestic product (GDP) growth, citing stronger momentum of the global economy and growth in China's exports. For those who want to import from China, now is a better time than ever.

The bank revised up its China GDP growth outlook to 6.6 percent for 2018 and to 6.4 percent for 2019 from their previous 6.4 and 6.3 percent, respectively, said a UBS research note on Thursday.

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"We now see China's exports growing faster than previously anticipated," said UBS economist Wang Tao in the note.

In 2017, China's exports increased by 10.8 percent to reach 15.33 trillion yuan ($2.44 trillion), while foreign trade volume rose by 14.2 percent year-on-year to 27.79 trillion yuan, data from the General Administration of Customs showed.

Wang expects investments in infrastructure and property sectors to moderate in 2018, as the government has tightened controls over local debt and credit, adding to weaker sales in the property market.

She said that consumption growth should remain resilient in 2018, citing solid income growth supported by robust performance in exports and the service sector.

Noting a likely rise in trade frictions between China and the United States, Wang said the UBS does not expect a large-scale trade war.

"In fact, we think that a stronger global recovery... should help drive this year's Chinese export growth beyond our earlier forecast, more than offsetting any negative impact from trade frictions," it said.

The overall impact on China's total exports or GDP growth will be "very small," and the Chinese currency, the renminbi or the yuan, will not be used as a tool to respond to US trade measures, the report added.

UBS followed the International Monetary Fund in raising the outlook for China's economy growth, which raised its forecast for China's 2018 GDP growth to 6.6 percent in January, up from the 6.5 percent prediction made in October 2017.

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Recommended: Top Footwear Supplier in China

Today we'll introduce a leading footwear supplier in China to you.

Company Profile

Hoson Import & Export Co., Ltd.

Location: Jiangbei District, Ningbo City

Products: Footwear of women, men and kids

Highlights: The three production lines enable Hoson to realize the one-stop operation from the raw material purchase, actual shoe-making to the inspection and packaging.

Hoson Import & Export Co., Ltd. was established in 2011. With 6 years of experience in the export business, its current main products are footwear of women, men and kids, including women’s high-heels and boots, men’s leather and casual shoes, and kids’ boots etc.

The company has a professional design and R&D team to meet the client’s every demand, including material, size, color and design, etc., and print his logo on the footwear to build his own brand. Currently, the company mainly exports the footwear to Europe & America, Southeast Asia and Africa, etc.

Speaking of the original intention of founding this company, Manager Sherry Song said, “Beautiful, quality and comfortable shoes can bring people a sense of satisfaction and comfort, thus fashion and comfort are indispensable to a pair of good shoes.”

Manager Song has heard of the Electronic Global Trade Credit Platform (eGTCP.com) two years ago and Hoson Import & Export Co., Ltd. joined eGTCP.com officially this year in July. “We have attended the 3rd GTCC in September and we have learned and trusted more of the Platform.” said Manager Sherry Song.

Foreign Trade Manager: Ms.Sherry Song

Manager Song was also very optimistic about the future cooperation, “The Platform can help us match orders online and offline, and also offer us the buyer credit investigation to ensure safe orders. We’re looking forward to more buyer and order resources from the Platform” added Manager Sherry Song.

Official site: http://hosonshoes.en.egtcp.com/

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Recommended: what is the reason behind Huayi's rapid development?

Today we'll introduce a leading import and export company in China to you.

Company Profile

Ningbo Huayi Import & Export Co,. Ltd.

Location: Yinzhou District, Ningbo City

Highlights: With “Integrity, Pragmatism, Innovation” as our business tenet, we focus on professionalism, attitude and services.

Ningbo Huayi Import & Export Co,. Ltd. was awarded the eGTCP Best Credit Service Provider on the 3rd GTCC for its excellent risk control system, professional services and positive client feedback.

General Manager of Comprehensive Business Department  JIANG Haiyong (Anna)

It is a company with quite a long history. Ningbo Huayi Import & Export Co,. Ltd. was founded in 1997 and was a wholly owned subsidiary of the Fiocco Group Co,. Ltd. with its main market aiming at China’s womenswear. In 2013, the company initiated its foreign trade service platform project, and has cumulatively offered the 24-hour one-stop foreign trade comprehensive services to over 3,000 SMEs.

The company has maintained its speedy growth in export volume for 3 consecutive years despite of the grim situation in the foreign trade industry. “In 2015, we ranked 133rd in the municipal foreign trade list, and after 2 years of rapid development we have risen to 33rd.” said JIANG Haiyong, General Manager of the Comprehensive Business Department.

How did Ningbo Huayi Import & Export Co,. Ltd. grow so rapidly in just a few years? General Manager Jiang answered this question with just 3 words: professionalism, attitude and focus.

Recently, Ministry of Commerce of the People’s Republic of China, General Administration of Customs, P.R. China, State Administration of Taxation, General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China and State Administration of Foreign Exchange have jointly issued the Notification of Promoting the Healthy Development of the Comprehensive Service Enterprises in Foreign Trade. For this new policy, General Manager Jiang thinks that there are 3 key points: the subject of liability is more explicit; the risk control is stricter; the punishment system is more mature.

 “ The filing system will be stricter which means that the manufacturers need to go through many more procedures by themselves. How to get the client to understand the meaning of comprehensive services? How to lead them to continue our cooperation? These are problems for our company and the whole industry.” said General Manager Jiang.

In 2017, Ningbo Huayi Import & Export Co,. Ltd. with its mind focusing on both credit and Internet, joined eGTCP.com officially and became a credit foreign trade service provider on the Platform. For the cooperation with the Platform, General Manager Jiang said, “ Our services are for SMEs, for they often encounter financial problems. But the Platform makes financing much easier which is exactly what SMEs need. So our cooperation is quite pleasant and I believe that we can achieve win-win together.”

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South Koreans are hoping for a revival at China’s biggest trade fair

A monkey-shaped novelty tea-infuser could be Jeoung Young-min’s ticket to Canton Fair, which is the biggest trade fair in China. And after months of political obstacles, things are finally starting to happen.

Days after China and South Korea agreed to shelve their year-long dispute over the Thaad U.S. missile system, small-scale exporters from the nation trying to break into their neighbor’s giant economy expressed optimism that trade restrictions and a de-facto boycott of their goods is over.

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Jeoung’s brand, a startup maker of design household goods, fell victim earlier this year to the falling out. Their first attempt at product marketed in China -- the monkey infuser -- was suddenly no longer able to clear Chinese customs and a tenth of their consignment already sold was returned, Jeoung said Friday at a booth at this year’s third installment of the Canton Fair in Guangzhou.

As the two nations began to work toward a solution to the impasse, trade restrictions on his product were lifted and Jeoung says without this "burden" he’s hoping the China market can make up 40 percent of his sales within five years.

As the world’s second-largest economy becomes a shopping superpower in its own right, manufacturers like Jeoung may represent a shift in the trade profile of the two countries, adding more consumer goods to the smartphone components and engineering products that currently dominate. China is South Korea’s largest trading partner, with more than $246 billion in bilateral commerce last year.

But despite the tough rhetoric around deleveraging, measures of credit continue to show expansion, with aggregate financing surging to a six-month high of 1.82 trillion yuan ($274 billion) in September. China’s corporate debt surged to 159 percent of the economy in 2016, compared with 104 percent 10 years ago, while overall borrowing climbed to 260 percent.

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While some business interrupted during the row is beginning to resume, exporters in Guangzhou underlined that it’s not a uniform process.

Cody Kim, an executive at Chamos Cosmetic Co. Ltd which makes skincare products for outside brands and markets its own Acaci line, said in Guangzhou that his company’s exports to China dropped by about 50 percent.

The method of the Chinese clampdown was again red-tape: Approval and import restrictions suddenly became draconian, and he says they still haven’t improved.

"Every Korean skincare manufacturer faced the same import and registration issues suddenly," Kim said in an interview. "We’re hopeful that things will improve now that there’s an improvement in the bilateral relationship. It’s only been a few days so we haven’t seen anything on the ground yet. But the China market has enormous potential for us."

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Recommended: Top freight forwarding agency in China

From 2005 when he established this company until now, Manager Ji has managed to build a well-known freight forwarding company in the industry with over ten years of hard work .

However competition in the market can be quite fierce. So some companies keep lowering prices blindly in order to attract clients. This has led to a continuous decline of profits and increase of client demands. These factors all pose severe challenges to the formal companies like Kingtrans Globistics.

How to deal with this situation? Manager Ji has his own principles.

"We not only provide excellent services for our customers, but also help them reduce costs. In this new era, we can improve our own abilities only with the Internet",  said Manager Ji.

With this in mind, Kingtrans Globistics has enrolled in eGTCP.com.

In 2016, one of Dubai buyers posted a logistics request after using eGTCP’s financing service. With the information provided by the Platform, Manager Ji contacted this Dubai buyer and established cooperation with him in the end successfully.This buyer had good credit with annual import volume from China reaching 500 TEUs. With this new client, Kingtransi’s business performance in that year was improved significantly.

 “The effect of enrolling in the Platform is very obvious. So far, our customers have increased by over 200, among which more than 100 have been converted to the actual output ", Manager Ji added with relief.

Company Profile

KINGTRANS GLOBISTICS CO.,LTD

Location: Haishu District, Ningbo City

Service Category

Kingtrans Globistics Co., Ltd. is a 1st grade international freight forwarding agency authorized by the Ministry of Commerce of PRC with forwarding imported and exported goods as its main business.

Company Showcase

General manager: Mr. Ji

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