Chinese exports have been increasing constantly for the last 15 years with only one year exception.<\/p>\n
Chinese exports decreased only in 2009 during the 2001 and 2012 period. (See below figure.)<\/p>\n
Total Chinese exports was 266 billion USD in 2001. Between 2001 and 2007 Chinese exports rose more than 5 times and reached to 1.220,00 billion USD value.<\/p>\n
These figures made China the biggest exporting country in the world ahead of US just in the same year.<\/p>\n
Since then China is the biggest exporting country in the world. As you can see on the below figure Chinese exports reached to 2.049,00 billion USD in 2012.<\/p>\n
Figure 1: Chinese Exports Between 2001 and 2012<\/p>\n How China managed to increase its exports much faster than the world average?<\/p>\n According to Mary Amiti and Caroline Freund, Chinese export success is a result of shifting from soft export products such as textile industry to hard export products such as electronic goods. China became more specialized in higher value-added products and became more sophisticated. (1)<\/p>\n<\/blockquote>\n But this answer only move the nature of the original question while the original question remains mostly unanswered.<\/p>\n Figure 2: Chinese Exchange Rate Between 1978-2010<\/p>\n Figure 3 : Chinese Average Tariff Rate Between 1978-2010<\/p>\n Figure 4 : Anti-Dumping Measures Against China 1995-2009 Figure 5 : Chinese Corruption Perceptions Index of year 2013<\/p>\n The most common China letter of credit fraud involves with non-existent cargoes and using letters of credit as a payment method of obtaining cash from the banks or importers.<\/p>\n According to letter of credit rules banks deal with documents and not with the goods. <\/strong><\/p>\n<\/blockquote>\n If a fraudulent exporter manages to create fake shipment documents under a letter of credit, which is relatively easy, can manipulate the banks to obtain the payment and not to ship the goods at all.<\/p>\n Case Study : China Import Letter of Credit Fraud<\/span><\/strong><\/p>\n Dear Steven<\/strong><\/p>\n We have dealt with a Chinese company in order to buying polypropylene granules (a kind of raw material) from China. As you see in the attachments our deal was about 60 MT of the goods with the whole price of 60,600 USD.<\/strong><\/p>\n We had opened our LC via our bank to them and the LC was LC at sight payable against the original full set of documents as bill of lading , certificate of inspection issued by CIQ organization and certificate of origin issued and certified by legal organizations in china.<\/strong><\/p>\n The seller prepare all document and sent to his bank, then his bank sent the documents to our bank and ask for the price.<\/strong><\/p>\n We checked the documents and see all of them are original without any discrepancies.<\/strong><\/p>\n So our bank send the money to the seller.<\/strong><\/p>\n When the goods arrived to our port we saw the amount and packing and every thing is not as our contract.<\/strong><\/p>\n And the Chinese agent of the shipping company changed his BL and told us the original BL that was sent to your bank is fake !!!!!!!!! but the sale and signature of the shipping company is on our original BL.<\/strong><\/p>\n Now we want to lawsuit against the seller immediately, please advise us the best way to claim.<\/strong><\/p>\n![\"Figure](\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/china-exports-2001-2012.png\" "\\"Figure")
<\/a>\n
How Could China Manage to Transform its Economy to an Export Machine for a Quite Short Period of Time?<\/strong><\/h4>\n
\n
<\/a>\n
\n
What are the Challenges to China\u2019s Fast Export Oriented Growth Strategy?<\/strong><\/h4>\n
\n
<\/a><\/p>\n\n
<\/p>\nWhat You Should Expect When Doing Business in China?<\/strong><\/h4>\n
\n
What are the Weaknesses of the Letters of Credit Payments?<\/strong><\/h4>\n
\n
China Letter of Credit Fraud Example:<\/strong><\/h4>\n
\n