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| China-Japan-Koreas |
| Chinese factories becoming reluctant to take rush Christmas orders |
| 2010-12-01 |
| The Christmas season is quickly approaching, and China's exporters are like elves busy making holiday gifts to be transported and sold worldwide. But while large volumes of orders usually bring happiness in profits, this year, it's bringing on headaches instead. Most years, Chinese manufactures have looked forward to the holiday season with cheer. But this year may be different. In the eastern Chinese city of Ningbo, a hub for export goods, factories are feeling more towards incoming orders from overseas. Their production prices are rising thanks to the soaring costs of raw materials. Xiang Bobo, Manager of Chinese Exporter said "Material prices are rising so fast, they differ each day. That makes it impossible for us to price our product appropriately, and we have had to turn down many orders." B.S. They don't need the Christmas orders any more, they're already rich. Production prices are normally fixed several months in advance. So overseas buyers are unhappy when they have to pay for the slack. It has left many exporters unwilling to take large orders. Zhang Yongda, Manager of Chinese Exporter said "Since prices cannot be changed, and uncertainties still abound in the raw material market, exporters are afraid of bigger orders, as they also mean bigger risks." There are ways to mitigate the risk, but they just don't care. For the manufacturers who have taken such orders, they are struggling for profits. And for many, this is shaping up to be a busy season, but not necessarily a profitable one. |
| Posted by:gromky |
| #5 The People's Online Daily from CNTV.cn? I'm with BP. Sounds like an inflation warning. When India gets the infrastructure China has built to facilitate exporting, it can start to deal with its distance problem. |
| Posted by: Nimble Spemble 2010-12-01 10:35 |
| #4 There are lots of countries in the world with hard workers and low labor prices that could do with some investment. I'd suggest India as a possibility. Just dangling the possibility in front of Chinese businessmen would probably do some good. |
| Posted by: rjschwarz 2010-12-01 10:09 |
| #3 It does sound like somebody's trying to create some sort of narrative to hide some news. |
| Posted by: Bright Pebbles 2010-12-01 09:14 |
| #2 Unless the Chinese are going to nationalize every available 747 in that part of the world, what's already in stores are what's going to be sold this Christmas season...or...it's going to be one hellva post holiday sale they're planning. |
| Posted by: Procopius2k 2010-12-01 08:44 |
| #1 Make in America! |
| Posted by: Jeremiah Flainter9609 2010-12-01 08:37 |