QIMA Q2 2011 Barometer: China Races to Secure Venezuela Oil with Exports

Shenzhen, China, July 13, 2011- QIMA, a leading provider of quality control services for businesses importing from Asia, today announces the QIMA Q2 2011 Barometer,a quarterly synopsis of Asia-based manufacturing and the quality control services industry.

China Sees Higher Trade Surplus, Inspections Follow Suit

In Q2 2011, QIMA service figures in China increased +27% year-over-year, continuing to outpace export growth which grew 20% from year-earlier periods. China's growth comes in the wake of rising worker wages, continued inflation and supply chain disturbances due to the March earthquake in Japan. QIMA inspection figures also show large increases in Asia's other top export markets, where inflation is less rampant, with Indonesia up 75.7%, Bangladesh 65.8% and Vietnam +53%.

China Applying its Mideast "Exports-for-Oil" Model in South America

Bangladesh, with inspection figures up +65.8%, has one of the lowest worker wages in Asia. Foreign direct investment proposals have jumped from $584 million USD to $3.83 billion in the last fiscal year, in large part because of the higher wages in China, strengthening of the Chinese Yuan and in recent quarters, higher tariffs imposed on China from select developed countries versus other Southeast Asian countries.For example, China-made LEDs are imposed a 6 percent tariff when imported into the US, while those made in Vietnam are duty-free, opening the door for China itself to finalize production outside of China, to mitigate imposed tariffs.

In addition to a +14.4% increase in the traditionally strong Textile and Apparel category, QIMA inspection figures show products that were sluggish in 2010 make a comeback. The greatest rebounds were seen in Food and Food Packaging up +98%, Homeware and Gardenware +66%, and Construction and Building Materials +37%.

Inside of a Chinese factory

Asia Trade, Unified by China for China

Bangladesh, with inspection figures up +65.8%, has one of the lowest worker wages in Asia. Foreign direct investment proposals have jumped from $584 million USD to $3.83 billion in the last fiscal year, in large part because of the higher wages in China, strengthening of the Chinese Yuan and in recent quarters, higher tariffs imposed on China from select developed countries versus other Southeast Asian countries.For example, China-made LEDs are imposed a 6 percent tariff when imported into the US, while those made in Vietnam are duty-free, opening the door for China itself to finalize production outside of China, to mitigate imposed tariffs.

In addition to a +14.4% increase in the traditionally strong Textile and Apparel category, QIMA inspection figures show products that were sluggish in 2010 make a comeback. The greatest rebounds were seen in Food and Food Packaging up +98%, Homeware and Gardenware +66%, and Construction and Building Materials +37%.

QIMA Audit Figures Reach All-time High

Audit figures for Q2 2011 were up a remarkable +57% year-over-year, and +29% from Q1. According to QIMA CEO Sebastien Breteau, these figures suggest more importers are investing in their suppliers for the long term. "The growth in audit services may mean that more importers recognize the long-term value of helping to improve the quality of their supplier's operation, and not just the product that they are going to sell next month. Assessing the condition of factory equipment, staff and facilities goes a long way towards improving product quality once production starts."