More than half of the exports are from foreign
invested enterprises. 19% are from state-owned
enterprises while 24 % are from other business
types. The bulk of the exports coming from foreign
invested enterprises strengthen the point that China
is an attractive place for business activities. One
of the main alluring factors is the low cost of
labor. With lower cost of production, profits would
be enlarged, ceteris paribus. This also explains the
rising proportion of foreign invested enterprises in
the aspects of exports increasing from 50% in 2001
to 57% in 2007. On the contrary, exports from
state-owned enterprises are on a falling trend since
2001’s 43% to 19% in 2007. These trends would be
expected to continue as foreign invested enterprises
foresee large potential while China opens up to the
rest of the world.
