Experts Didn't Expect This From China

South Africans Are Buying A Lot Of Electronics From China

Have you ever wondered that South Africa relies heavily on electronics from China?

The expansion of foreign trade has played a key role in driving China’s economic growth since its economic liberalization in 1978. Initially, exports were concentrated in labor-intensive industries such as textiles. In the 1990s, however, exports of high-tech electronics became the most dynamic part of export growth.

Between 1980 and 2000, exports of electronic products have grown at an average annual rate of 43 percent, almost three times faster than total exports. In 2000, exports of electronic products accounted for 28 percent of total exports. As a result, China has become one of the top electronics traders, accounting for 4.5 percent of world electronics exports in 2000.

China’s rapidly expanding electronics export has instilled in many Western business and political leaders a growing fear that the country is becoming an economic superpower that is competitive not only in labor-intensive industries, but also in high-tech industries.

This fear has been fueled by the fact that in recent years several Chinese electronics “champions” have successfully penetrated foreign markets and become global competitors. In consumer electronics, Haier has become the world’s fourth largest manufacturer of large household appliances. In the computer industry, Lenovo has made a name for itself by purchasing IBM’s PC unit and becoming the first Chinese company to sponsor the Olympics.

In the telecommunications equipment sector, Huawei and ZTE have become plausible competitors to world leaders such as Cisco and Nortel.

China’s emergence as a global player in the electronics industry is often attributed to its proactive policy of stimulating capital and technology inflows.

"Electronics was something I could always fall back on when I needed food on the table" - Steve Jobs

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