Consumer goods manufacturing companies see profit rise as overseas markets expand

The consumer goods manufacturing companies in China have seen their profit grow over the past three quarters as they keep expanding their businesses to overseas emerging markets.

The data released by China's National Bureau of Statistics (NBS) Sunday showed that profit of the country's consumer goods manufacturing industry increased by 2.4 percent year over year in the first three quarters.

The profit growth was driven by the increased export to the newly explored overseas markets, with the data showing that the export delivery value of the overall manufacturing industry increased by 4.1 percent in the same period.

A furniture manufacturing company in Shunde District of Foshan City, south China's Guangdong Province, has recently expended their business into the Southeast Asian and the Central Asian countries.

The value of the sofas and beds produced by the company annually can reach 350 million yuan (about 50 million U.S. dollars), said Tan Suzhen, general manager of Evergo Furniture Company Limited, adding that as the company expands overseas business, their sales to the Central Asian markets grew drastically.

"Our sales to the Middle East market alone grew by 60 percent year over year. Our sales data is really impressive and has been growing, too," said Tan.

With existing business in Western Europe and North America, an appliance manufacturing company in Yongkang City, east China's Zhejiang Province, found new customers in the Middle East and North Africa.

The expanded business helped the company reach their annual sales goal at a faster pace and their sales have been growing at a remarkable 40-percent rate.

"In terms of export, we reached our annual sales goal within the first three quarters and the year-over-year increase in the first three quarter was about 40 percent," said Hu Di, assistant to the chairman of Arda Appliance Company Limited.

For the overall industrial sector, its export delivery value has been growing faster and faster, said Chen Xi, associate researcher of the Academy of Macroeconomic Research of China's National Development and Reform Commission, adding that the good performance can in turn nurture better sales and efficiency of enterprises.

"In each of the first three quarters, the export delivery value growth of the industrial enterprises above the designated size accelerated. Major provinces like Guangdong, Jiangsu, and Zhejiang posted faster growths. The increased export delivery value helped boost sales of the enterprises and their efficiency," said Chen.

Consumer goods manufacturing companies see profit rise as overseas markets expand

The gold price fluctuated above 3,140 U.S. dollars per ounce on Thursday, after President Donald Trump's announcement of sweeping new tariffs against most U.S. trading partners.

The price of gold has jumped nearly 18 percent this year, as traders piled into the safe haven asset amid a steep decline in stock market futures.

Amid widespread opposition, U.S. President Donald Trump on Wednesday signed an executive order on the so-called "reciprocal tariffs," imposing a 10-percent "minimum baseline tariff" and higher rates on certain trading partners.

All imports would be subject to 10 percent additional tariffs, except as otherwise provided, the executive order said. This will take effect on April 5.

Trump will impose an "individualized reciprocal higher tariff" on the countries and regions with which the United States "has the largest trade deficits," according to a White House document. This will take effect on April 9.

Some goods will not be subject to the reciprocal tariff, including steel and aluminum, autos and auto parts already subject to Section 232 tariffs, copper, pharmaceuticals, semiconductors, and lumber, the White House noted.

For Canada and Mexico, United States-Mexico-Canada Agreement (USMCA) compliant goods will continue to see a 0 percent tariff, non-USMCA compliant goods will see a 25 percent tariff, and non-USMCA compliant energy and potash will see a 10 percent tariff, according to the White House.

In his speech at the White House Rose Garden, Trump presented a chart on "reciprocal tariffs." The chart shows that different countries and regions face different tariff rates.

For example, China will face a 34-percent tariff, the European Union 20 percent, Vietnam 46 percent, Japan 24 percent, India 26 percent, South Korea 25 percent, Thailand 36 percent, Switzerland 31 percent, Indonesia 32 percent, Malaysia 24 percent, and Cambodia 49 percent.

Gold price fluctuates after Trump tariffs announcement