Sunday, May 17, 2009

Chinese exporters say they face hard times upi

Chinese exporters, losing demand for their products in the current global crisis, are turning to the domestic markets, but some say the transition isn't easy.

At a recent trade fair in Guangzhou in southern China, organized to help exporters explore the domestic market, one trader complained about difficulties in selling her products, Xinhua reported.

'We sell them at factory-gate prices, but buyers still bargain. That makes me mad,' she said.

In Guangdong, which accounted for more than 25 percent of China's foreign trade last year, the Xinhua report said the global crisis has affected tens of thousands of exporters.

The region exported $98.5 billion worth of good in the first four months of this year, which was down 17.8 percent from the same period of last year, the report said. The report added that across the country, exports fell 20.5 percent in the same period.

Xinhua said the Chinese government, aware of the problem, has been devising policies to help the exporters reduce their reliance on foreign markets. However, the exporters say gaining a foothold in the domestic market is not easy because of tough competition and in some cases, price wars. Some of their products, they say, also are not suitable for the local markets.

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