Wednesday, February 26, 2020

Article Summary Essay Example | Topics and Well Written Essays - 3750 words

Article Summary - Essay Example Whilst expanding exports, China is also demanding more imports of sophisticated consumer and producer goods and natural resources from the region. This article examines the nature of China’s threat using benchmarks for competitive performance in terms of technology and market. Market share changes are analysed and specific product groups are highlighted, which â€Å"are directly or indirectly exposed to a competitive threat.† Trade within the region itself is also examined. The extent of the perceived threat depends on the neighbouring countries’ ability to expand exports likewise, that is, â€Å"the relative growth of technological and other capabilities† between the countries. It also depends on â€Å"the organisation of the production and marketing system†. The threat is therefore assessed by mapping relative export performance by technology and destination. China’s export growth rate actually declined over the 1990s and halved for manufactured products. The structure of exports shows that a shift towards medium and high technology products exists, and â€Å"the industry is expanding capacity rapidly and improving technology†. Moreover, this structure â€Å"is rapidly coming to resemble that of its neighbours.† The normal measure of competitive performance for firms is changes in market share. China is presently the largest exporter in the region and due to its size has the largest increase in world market share though most other countries have also increased their market shares. In comparison, China is ‘overwhelming’ in the fashion cluster due to the cheaper labour, strongest in LT products, and relatively strong in MT products (except for automotives). For example, in 1990 China was at the same level as Korea in LT exports by 2000 dominated the region. In HT products, market share is relatively low but â€Å"rising rapidly†, though most other East Asian countries also maintain export growth rates. Overall, China’s export expansion spans â€Å"the

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