Export recovery continues to be strong and the Pearl River Delta reproduces high-load production

In 2010, industry experts and scholars anticipated that the gradual recovery of private investment, exports, and consumption would begin to offset the decline in demand caused by the winding down of stimulus measures. Among these, export growth was expected to be the key driver for China’s economy that year. However, with the Christmas season behind them and European and American inventory replenishment nearing an end, a critical question remained: Would February's exports continue the upward trend seen before the Lunar New Year? Had China truly entered a sustained period of export growth? To investigate this, a reporter from the Shanghai Securities News visited the Pearl River Delta, a region densely populated with export-oriented enterprises. The findings were largely positive. Export recovery had been strong, with many foreign trade companies operating at full capacity. For instance, Chenglin Shares, a company based in Baoan, Shenzhen, which produces sanitary ware mostly exported to North America and Europe, started operations just four days after the Spring Festival—unlike the extended holiday break in 2009. The firm was running two shifts daily due to high demand and a shortage of workers. During the field survey, data from factories, ports, and customs indicated a consistent rebound in exports. Industry insiders suggested that the first-quarter export growth might surpass the 10% to 15% forecasts made by some economists and investment banks. This could signal a turning point where exports would once again contribute significantly to GDP growth. In Dongguan’s Houjie district, known as the “shoe capital,” factories were operating at high capacity. Recruitment signs were everywhere, and new factories were being built, reminiscent of pre-crisis conditions. At the local labor market, officials confirmed that since October 2009, order volumes had steadily increased, leading to a surge in labor demand across the region. According to the MNI China Business Confidence Survey, the employee demand index rose to 61.3 in February from 53.8 in January—the highest level in five years. This reflected a broader trend of economic recovery. Huacheng Footwear, a company previously focused on domestic sales, now found itself receiving a significant number of export orders. As a result, it opened a new factory dedicated to international markets. Similarly, Jida Shoes, which exports women’s footwear, reported a near-doubling of orders compared to the same period last year, exceeding pre-crisis levels. Detai Paper, a newly opened factory in the area, was also experiencing a surge in business. Its security team revealed that the facility, set to start operations in March, would focus on exporting gift boxes to the U.S., driven by increased orders from the previous year. These developments were not isolated. The MNI survey also showed that production and new orders indices hit multi-year highs in February. The overall business confidence index climbed to 70.4, the highest since April 2007. At Yantian Port in Shenzhen, one of the largest ports in the Pearl River Delta, activity remained brisk despite the off-season. In January, cargo throughput grew by 29.12% year-on-year, while container throughput increased by 16.14%. In February, the port remained busy, with long queues of trucks waiting to unload containers. Port staff noted that the post-Spring Festival period, while still a low season compared to late 2009, was far better than the previous year. Truck drivers like Wu from SEG Logistics confirmed that business had picked up early in the year, with daily deliveries increasing significantly compared to 2009. Customs experts attributed the rebound in port activity to the global economic recovery and improved export demand. Since mid-2009, foreign trade demand had gradually stabilized, and by the fourth quarter, Shenzhen’s exports turned positive. This trend continued into 2010, with Shenzhen Port reporting a 26.87% year-on-year increase in foreign trade cargo throughput in January. Global trade indicators also supported the optimism. Container shipments, shipping rates, and the Baltic Dry Bulk Index (BDI) all showed signs of improvement. For example, CIMC Group, which controls 55% of the global container market, restarted its dry box production in November 2009. Orders surged from 1,000–2,000 TEUs per month in June to over 25,000 TEUs in January 2010, signaling a strong recovery. Shipping companies such as CSCL and COSCO also raised freight rates to the U.S. and Europe, reflecting increased demand. Meanwhile, the BDI index showed stability, with analysts predicting further gains in the second quarter of 2010. Overall, the evidence pointed to a sustained recovery in China’s export sector, driven by both domestic and global factors. With factories operating at full capacity, ports bustling with activity, and global trade indicators improving, 2010 appeared to mark a turning point for Chinese exports.

Pants

T&H INTERNATIONAL TRADING LIMITED , https://www.th-globe.com