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China’s higher-end Exports Grow Rapidly

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SHANGHAI, China -China is drifting away from over reliance on cheap, low-end goods to more value-added products, the Financial Times reported Monday. The booming country witnessed a 30 to 150 % rise in the exports of telecommunications equipment, auto parts, software and ships since 2005, a Deutsche Bank report was cited as saying, while the low-end exports are running out of steam.

SHANGHAI, China -China is drifting away from over reliance on cheap, low-end goods to more value-added products, the Financial Times reported Monday. The booming country witnessed a 30 to 150 % rise in the exports of telecommunications equipment, auto parts, software and ships since 2005, a Deutsche Bank report was cited as saying, while the low-end exports are running out of steam.
 
In the first 11 months of last year, China exported 12,000 more vehicles than it imported. "Across a wide range of machinery and industrial intermediate goods, China is now a net exporter," Arthur Kroeber of Dragonomics, a consultancy in Beijing was quoted. The transformation was attributed to three factors: rising wages which have pushed some low-end manufactures offshore, increased policy support for high-end products and growing private sector. The Deutsche Bank estimates high-end exports will grow for 30-40% a year for the next three to five years with some sectors, such as auto parts and software outsourcing.

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