Analysis of International Competitive Power of Chinese Laminate Flooring

Abstract

From 2017 to 2021, the international trade characteristics of Chinese laminate flooring based on analysis results in some aspects following where viewed: The export quantity was much greater than that import while prices are even worse with an average export unit price only takes less than two-thirds of the average import unit price. As low price and high quantity, the trade competitiveness index of Chinese fermentation broth was higher in international market. Under this circumstance, the author proposed some suggestions on sustainable and healthy international trade development.

Key Words: Laminate flooring, Export, Trade competitiveness index, International market share

Introduction

Laminate flooring, the so-called impregnated paper laminated wooden floor in science origin form abroad. Its superior performance, various designs & high cost-effectiveness has made it popular all over the world. Since the 1990s, China officially introduced laminate flooring to see its rapid development in And gradually become an important category of wood and bamboo floor. In the present day, China serves as one of the largest consumers and exporters for laminate flooring. Exports in particular have become a major force for economic growth, and the export of high-quality development has effectively led domestic economic growth. In recent years, the development of laminate flooring industry lesson suffered a variety of pressures and challenges from market demand volatility to rising operating costs, but also by this year's COVID-19 epidemic. The effect of trade barriers, in addition to cause China's laminate flooring international trade growth by slowed down the speed.

This paper analyses the import export characteristics of China's laminate flooring trade based on data from china customs and FAO,expounds the flow changes of domestic production capacity in recent years. In addition, it puts forwards some ideas to promote healthy development of China's laminate flooring international trade in the light of both contractional competitiveness index and market share.

1. The Current Status of China Laminate Flooring International Trade

1.1 Import Situation

Annual import volume of Chinese laminate flooring in 2017-2021 reached from 60,000 to nearly 100,000 cubic meters (Fig. After that, the amount imported peaked in 2017 at an almost negligible 94.8 thousand cubic meters before a steady decrease from year to year with around -10% annual average drop. That is more than 20% less in 2020. This year, 96,000 m3 was imported trade volume increased by +58.95% yoy (it is a small peak from 2017years),

In 2017–2021, the import price (∼900 USD per cubic meter) mirrored the trend in imports of laminate flooring (upon elimination from raw materials and production costs). In 2021, the import unit price for Manga wood averaged 908.35 USD per cubic meter, falling by -3% against last year's figure In essence, in 2021 both the quantity and value of imports as well as the average price per imported unit increased.

Details Analysis on Import Sources in 2021According to the aggregate data, Germany, Belgium and Thailand were major countries for Chinese laminate flooring import (Table 1). The Netherlands imported over 20,000 m3 of fuel wood from Germany and Belgium in the first half year as well as over 40,000m3 from Thailand. Of these, Germany accounted for the largest single source with 44,700 cubic meters of a total import volume reaching 46.52%. Belgium shipped 15800 cubic metres and Thaland only 13080 (16.42% &13,58%).

1.2 Export Situation

During the period from 2017 to 2021, China exported laminate flooring less and decreased annually (18.16%-25%), its export volume peaked at of yearly ~1.280 million cubic meters in 2017 and declined significantly to around only ~773100 Cubic Meters each year since position this laundry scenario without notice again.asList of Constants This year, an increase of 5.27% can be seen as the export volume reached to 813900 cubic meters in comparison with last year 2020

Chinese laminate floor export value has generally decreased over the past five years, with an uptick finally taking place in 2021. The average export unit price was between 520 to 580 USD per cubic meter (Figure 4), and the highest representive value occurred in recent years at apporximately $573.35 per cubic metre exporting in favor for a year-on-year increase of around8.88%. In general in 2021, Chinese Wood or bamboo fibre board (including laminate flooring) exported market of the export value and average export unit price is slightly decreased to a small extent respectively relative higher influenced by,however, with a lower average sum compared to that from well abroad.

As for export destinations, Chinese laminate flooring was mainly sent to Europe America and Middle East. The top ten export destinations in 2021 also included USA, Canada and Russia whereas the destination Chile was among friends Saudi Arabia, India and Mongoliaand of course UK (Table 2) 1.The export concentration was high, of which America, Canada and Russia took up 44.34% in the total exports respectively;

1.3 Compliation of import and export

It is found that Chian laminate flooring with a universal scale and influence in global production have an annual export volume generally more than ten times the annuaol import one. Still, the export volume remained more than eight times larger and imports showed an increase in 2021. But that said, the average export price was quite a bit lower than what emerged as an average import price--approximately 60% of whatever the importer had paid on average. Even so, the annual export value was far greater than the annual import value - registering a trade surplus.

Source: Centre for International Economics, estimates based on Herald Sun researchBoth the top import source (China) and destination for Australian laminate exports had high regional concentration. Last year, more than 90% of imports were from ten countries like Germany to Belgium and Thailand. On the other hand, 74 percent of exports were sent to just ten countries-ending up in places like... you guessed it --the Soviet and Warsaw Pact clients. This strong reliance on foreign trade further exposes them to risks of increasingly frequent and sophisticated trade friction, which generally has become more politically partisan in recent years.

2. China's Laminate Flooring Trade Competitiveness Index and International Market Share

2.1 The Trade Competitiveness Index

The Trade Competitiveness Index (TC) indicates the ratio of net export value to total import and export value for an industry, indicating that whether or not the country's products have competitiveness in world market. The formula is (1)

[ TC = \frac{(X - M)}{(X + M)} \quad (-1 < TC < 1) ]

Where ( X ) and ( M) for the export/import value of product respectively A positive TC index signifies high levels of trade competitiveness and a negative figure depicts low trade competitiveness. The TC index of Chinese laminate flooring is relatively high (Table 4), essentially around one, and consistently almost exactly equal to 0.97 between 2017-2021, evidence that its large trade competitiveness has not been seriously affected during the period.

2.2 Market Share on International Level

International Market Share (IMS) - Ratio of a specified country's export receipts from a commodity to world total exports. Which is written in the formula of equation 2.

IMS_{ij} = frac{X_{ij}}{X_{wj})

Where ( IMS_{ij} ) represents the international market share of country i for product j, and with X denoting total export value then: Although the international market share of Chinese laminate flooring is high, but in recent years has been reduced year by about 8-12%. The international selling in 2019 achieved a market share of only12.64% which then plummeted to just8.76% after two years, falling by3.88%. The fall in global market shares was mainly due to the decline of exports.

It is mainly due to the structural characteristics of Chinese laminate flooring export (import), trade competitiveness index and international market share with a high volume rhyme low price, so it show more as large excess amount. This has a short-term positive effect on the balance of our national economy, but in terms of international trade this is not conducive to stable growth. In order to meet the upgrade requirements of China's industrial structure, as well as higher-quality development needs in all directions, it is urgent to improve the international competitiveness and added value per unit time through technological innovation on a large scale for laminate flooring.

3. China Laminate Flooring; Suggestions For Increasing New Era International Competitiveness

Technological Innovation - use of lower costs would be an obsolete mechanism to help Chinese economy grow Under the pressure of the international market, Chinese laminate flooring enterprises should carry out technological innovation and develop high-quality products with strong added value to meet demand of overseas markets at higher price which will also promote trade through innovation.

Brand Building: So far, very small number of Chinese laminate flooring companies have been selling under their own brands in the overseas market. International trade competitiveness is an important reason for brand strength. Improve brand marketing and influence, obtain discourse power, which can set up a stable international sales channel. It will be an important period for brand competition in the flooring industry over the next few years. As long as domestic companies can carry out independent product development, quality control and build a good corporate culture, they will be able to win the international market.

Market Diversification: There is also a need to mitigate the risk and develop an international stable multilateral trade system which help in allow for diversifying of market. Be sure to adjust your strategies and structure, for products and market coverage based on changes in the international environment that can let you respond smoothly when some markets suddenly change or new trade barriers emerge.

Policy Research: In the face of a complex international environment, Chinese flooring companies generally do not understand the World Trade Organization ) rules, export country laws and regulations, international quality standards, and policies such as illegal logging legislation Lacey.

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