Which US Exports Stand to Benefit from China’s Growth in 2015
As China’s domestic economy and consumer base continues to grow, so do the opportunities for foreign exporters to sell their goods and services to this rapidly expanding market. In particular, US Exporters are in a good position to capitalize on this trend. Below are 10 markets, products and services that US Exporters are set to benefit from Chinese growth in the near future:
- Automobiles- In 2013 China imported $10.8 billion worth of vehicles from the US alone in 2013. While domestic Chinese auto brands are growing, their technology and design often lags behind that of US companies. Until this gap is bridged, Chinese consumers will continue to demand US cars and trucks as the best product in the market.
- Medical Equipment- Although Chinese medical equipment manufactures have low production costs, they lack the quality standard and innovation possessed by American companies. In 2013 Medical equipment was the 5th most exported good from the US to China, a trend that is expected to continue.
- Financial Services- A growing middle class combined with high savings rates will create demand for services like investment management, retirement and insurance. Although not a physical export, US companies with international reach like Citigroup are sure to benefit from new wealthy Chinese seeking financial security.
- Farm Equipment- China has the largest import market for agricultural equipment in the world, $38.4 billion as of 2012. With a push towards increasing automation and urbanization of the populace, US companies like John Deere will experience an increase in exports of their products.
- Soybeans- In 2013, US soybean exports to China totaled $13.8 billion. China can’t keep up with the demand for this diverse agricultural product, forcing them to turn to US exporters.
- Aircraft- Exports from the US have been among the top 5 for several years, due to the high quality standards of US manufacturers. While European companies may win occasional contracts in this category, US exporters are expected to remain dominant.
- Electronic Devices- While China is notorious for being flooded with cheap knock-offs of devices such as the iPhone, consumers are gradually demanding a higher standard of quality for authentic products. This puts US exporters like Google and Apple in a position of strength as it relates to delivering their devices to the Chinese Market
- Alcoholic Beverages- The aging Chinese population, combined with a more affluent young consumer base will benefit large US alcohol brands. These brands have a status appeal to the Chinese, who are increasingly more able and willing to purchase these products.
- Software- The pace of tech innovation continues to lag in China due largely to intellectual property issues. This makes the market for US software products and vendors that much more fertile.
- Organic Food Products- With food safety issues plaguing the Chinese market, high quality products from well-known US brands are escalating in demand. Dairy and egg exports from the US to China increased by 91% in 2013, illustrating one of the most robust US export businesses to China.