About 60 percent of the exports from China's inland regions are the contribution made by foreign capital companies, according to official statistics.
In other words, the firm owners are wholly or partly foreign investors, but basically multinational companies from developed economies hardly set foot in direct import and export business.
The profit share of foreign investors with export-oriented enterprises in the entire trade surplus could be neglected in calculation.
Among the top 50 exporters in terms of value, only four companies are from US with 9 percent share of total export value of the 50 firms.
When the numbers extended to top 200, the most optimistic estimate is that the proportion of multinational companies from US, Europe and Japan only accounts for 11 percent of China's overall export value.
In top 50 or top 200, most are foreign invested firms, but mostly are from China's Taiwan, Hong Kong or South Korea.
Namely, most multinational companies from US, Europe and Japan do not mainly produce products for 'selling back' to their native markets. Companies from Hong Kong and Taiwan occupy a heavier quotient in doing this.
These export-oriented multinational companies are growing rapidly by making use of the fast developing inland markets in China.
We would like to mention the playing role of Wal-Mart in China. The company alone accounts for nearly US $20 billion in China's export to US. But Wal-Mart is a buyer, it purchases cheap Chinese products and sell them to consumers in US markets.
Wal-Mart collects its revenue and profit by carrying out such kind of business, but these earnings and gains are not registered into the commercial statistics of Ministry of Commerce. In the debate of 'who would be responsible for China's huge trade surplus', buyer's identity should not be involved.
Fibre2fashion, News Desk - China
marketing@alchempro.com
