Slow US, EU orders are less of a concern as more suppliers focus on emerging markets. Improving production efficiency is a top priority while pricing flexibility is de-emphasized.
Results from Global Sources' latest survey show China suppliers are significantly more optimistic about export growth in the second half of 2013 than they were a year ago.
Over 70 percent of the 503 respondents see July to December 2013 exports outperforming the last six months of 2012 in terms of value. This is the first time in the past year-and-a-half that the "increase" option was selected by the heavy majority, the last being in October 2011 when 93 percent of suppliers expressed optimism over first-half 2012 prospects. In contrast, only 59 percent of participants in a similar poll said they expected second-half 2012 income to rise.
Beneath the sunny disposition, however, lies caution. Among makers expecting higher revenue this coming half-year, 56 percent think growth will be moderate and will not exceed 20 percent. About one-fifth estimate they will earn up to 30 percent more.
As for respondents on the opposite side of the survey spectrum, many warn that the drop in export income could be significant. A decrease of between 21 and 30 percent is the most common estimate. Anemic orders from the US and the EU remain the primary cause behind this.
On a larger scale, however, slow business from traditional markets has become less of a concern.
All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed.