Thursday, August 30, 2012
Maersk Line's Skou anticipates key changes in China's export market
Maersk Line’s top executive, Soren Skou, expressed concerns about the growth of China’s export market, in a recent interview with The Wall Street Journal (WSJ). Based on the interview, the publication reported the recent slowdown could usher in a key change in the way that China does business.
Right now the country’s export growth is at the lowest level since the 2009 fiscal crisis. During the first seven months of 2012, Chinese export grew by 7.8 percent, according to the article.
Skou notes in the WSJ interview that Chinese salaries are on an upward trend, which may ultimately make China less effective as a manufacturing base for companies seeking cheap labor.
”It is obvious that China will become less competitive in some areas” Søren Skou says, according to the WSJ. He added that China is Maersk Line’s most important market and that the manufacturing of goods such as shoes and toys, is slowly being relocated to countries such as Vietnam and Bangladesh.
Skou also noted that China has been agile in adjusting its export strategy. Although manufacturing may be relocating to other countries, its production of other goods, technical products such as electronics and solar panels, is increasing.
For more of the ScandAsia.com story: scandasia.com
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