China Traders Could make You Rich

By: Frank Vanderlugt

Since China began its economic reform in 1978, it emerged as a major trading nation and a cheap source of various goods traded in the international markets. Importing countries soon found a huge cost advantage in obtaining products from China factory sources.

Exports from China factory sources soon began to expand dramatically. In 1978, on the eve of reform, China ranked only the thirty-second among exporting countries. By 1989, barely a decade after reform, China had become the thirteenth largest trading nation in the world, nearly doubling its share of world trade. The noteworthy aspect of this reform was that over 90 percent of China’s trade was with open market economies.

The interaction with market economies also benefited the country’s domestic economy. China’s imports in the early decades of reform consisted overwhelmingly of industrial goods which would benefit the China factory sources that produced the goods for exports. These industrial goods would contribute significantly to increased levels of technological sophistication and production capacity in several key China factory sources.

The increasing technological capability in China factory sources would boost even further their capacity for exports. Noting that the U.S. is the largest economy in the world, the incentive for exporting to the U.S. would increase. In this respect, China behaved like many other successful developing countries around the globe. As domestic economies took off, the share of their exports absorbed by the U.S. increased.

China factory sources exploited its comparative advantage in labor-intensive manufactures, for which demand in the U.S. market was very responsive to price differences. Thus, in ever increasing quantities, Chinese goods displaced those provided by traditional suppliers to the U.S. market. It came as no surprise that China’s exports to the U.S. boomed.

Coupled with the manufacturing capability of China factory sources, the country also developed its trading capabilities. China has been a trading nation since ancient times and the trading expertise of China traders are legendary. With the advent of the Internet, Chinese traders quickly took advantage, linking up China factory sources with customers in the importing countries.

An importing company in the U.S. may simply establish online contact with China traders, which are usually headquartered in Beijing, the capital city, or in Shanghai, the fabled port city of China. These China traders will then turn to its network of China factory sources to provide the products the U.S. importer may be looking for.

These networks are not inconsequential. Typical China traders may have over 2,000 China factory sources on their portfolio involving dozens of product categories. These products could range anywhere from handcrafted artworks, textiles and garments, tools and small implements, to the bigger pieces of equipment. These huge networks of China factory sources can now provide you with any product you can think of — all made in China.