Voluntary Report - Public distribution

**Date:** 12/12/2007

**GAIN Report Number:** CH7623

CH7623

**China, Peoples Republic of**

**Market Development Reports**

**China, where American hides get shine**

**2007**

**Approved by:**

![](media/image1.wmf)Joani Dong

U.S. Agricultural Trade Office Guangzhou

**Prepared by:**

Vivian Xian

**Report Highlights:**

Fueled by a robust economy, growing middle class and status as the
world's largest manufacturer of leather products, it's no wonder Chinese
demand for U.S. hides in 2006 resulted in exports of \$1.05 billion,
roughly half of U.S. foreign sales and, in fact, the third largest U.S.
export category to China after soybeans and cotton. Chinese tanneries
and manufacturers appreciate the thickness and high quality grains, not
to mention consistent supply of U.S. hides. While continued sales growth
depends on the health of the global as well as Chinese economy,
increasing environmental concerns, rising labor costs, strengthening
yuan and less favorable VAT policies are pressing challenges.

Includes PSD Changes: No

Includes Trade Matrix: No

Trade Report

Guangzhou ATO \[CH3\]

\[CH\]

**Table of Contents**

[**I. What drives China's leather market
3**](#i.-what-drives-chinas-leather-market)

[II. The tanning process -- how raw hides become finished leather
4](#ii.-the-tanning-process-how-raw-hides-become-finished-leather)

[III. Evolution of the Chinese industry and where leather goods are
produced
5](#iii.-evolution-of-the-chinese-industry-and-where-leather-goods-are-produced)

[IV. The Chinese leather industry faces many challenges
6](#iv.-the-chinese-leather-industry-faces-many-challenges)

[V. How U.S. hides make their way to China
8](#v.-how-u.s.-hides-make-their-way-to-china)

[VI. There are two U.S. industry associations
9](#vi.-there-are-two-u.s.-industry-associations)

[VII. U.S. hides have advantages, yet face challenges
10](#vii.-u.s.-hides-have-advantages-yet-face-challenges)

[VIII. Post Contact Information 11](#viii.-post-contact-information)

[IX. A p p e n d i x 13](#viii.-a-p-p-e-n-d-i-x)

[Table 1: U.S. Hides Export Top 10 Markets
13](#table-1-u.s.-hides-export-top-10-markets)

[Table 2: China Hides and Skins - Direct Import Top 10 Origins
13](#table-2-china-hides-and-skins---direct-import-top-10-origins)

[Table 3: Hong Kong Hides and Skins - Direct Import Top 10 Origins
14](#table-3-hong-kong-hides-and-skins---direct-import-top-10-origins)

[Table 4: Major Chinese Ports for Imported U.S. Hides
14](#table-4-major-chinese-ports-for-imported-u.s.-hides)

[Table 5: China Leather Products - Export Top 10 Markets
15](#table-5-china-leather-products---export-top-10-markets)

[Table 6: Hong Kong Leather Products - Export Top 10 Markets
15](#table-6-hong-kong-leather-products---export-top-10-markets)

[Table 7: U.S. Leather Products - Import Top 10 Origins
16](#table-7-u.s.-leather-products---import-top-10-origins)

[Table 8: China's Major Leather Product Manufacturing Leather Areas
16](#table-8-chinas-major-leather-product-manufacturing-leather-areas)

# I. What drives China's leather market 

*China needs hides in a big way, and the US is its biggest supplier*

U.S. hides command a premium in China. Typically, the term "hides" apply
to bovine animals, such as steers and heifers while "skins" apply to
smaller animals such as pig and sheep. Hides comprise just about all of
the U.S. "hides and skins" category. Buyers value American hides because
85 percent of U.S. production are steers or heifers that have both the
best looking grains as well as thickness (with the exception of South
Germany which has limited production). Since well-cared-for American
cattle feed on corn and wheat; grow faster; and utilize feed lots rather
than graze, there is less room for scratches and
bruises.![](media/image2.wmf){width="3.5597222222222222in"
height="2.76875in"}

Chinese demand is growing for this American export worth more than US
\$1 billion in 2006 and valued half of total exports of U.S. hides. U.S.
hides is the third largest export category to China after soybeans and
cotton. Driving this trend is strong demand for high end luxury leather
products, such as leather bags, jackets, shoes, gloves and wallets for
export and by local consumers.

Today, China is recognized as the largest leather products manufacturer
in the world. With a robust local economy and a growing middle-class
demand for quality leather, products are on the rise, and industry
leaders expect this to continue.

China produces more than half of the world's shoes. It also leads in the
production of various leather garments and fashion accessories. While
local leather production is significant in its own right, China still
needs to import up to half of its raw hide and skin needs to meet
industry's demands.

![](media/image3.wmf){width="2.9756944444444446in"
height="2.567361111111111in"}

Local supply is considered low quality mainly due to poor animal
husbandry practices and damaging slaughtering techniques. That is why
China needs to import high grade raw hides and skins from overseas
producers to satisfy the leather industry's demand for high grade
leather for export oriented products.

Official statistics show that China directly imported US\$5.6 billion
worth of hides and skins in 2006. However, according to an industry
source, China imported a total US\$8.6 billion worth of raw hides and
skins and wet blue skins from all sources last year. Raw hides and skins
made up the bulk of these imports, and they're processed locally for
manufacture of leather products to supply local and overseas markets. In
2006, China directly exported US\$12.4 billion worth of leather
products. Local industry preferences in ascending order include bull,
cow, sheep and pig. In 2006, the local leather industry processed more
than 7.5 billion sq. ft (700 million sq. meters). Bull and cow hides
accounted for roughly half of total demand while pig skins (25 percent)
and sheep (20 percent) accounted for the rest.

The U.S. is the largest raw hide exporter to China with an estimated
trade value of US \$1.1 billion. Meanwhile, it imported US\$6.8 billion
worth of leather products from China. Other exporters to China include
Brazil, Australia, Italy, South Korea, Argentina, India, Thailand and
Canada.

Southern Chinese ports account for one-third of these imports while
other major Chinese ports for imported hides include Qingdao, Shanghai,
Hangzhou, Nanjing, Tianjin and Dalian.

# II. The tanning process -- how raw hides become finished leather

"Tanning" refers to the process of transforming hides into a different
kind of material called leather. Basically, flesh, fat, moisture and
bacteria are removed that cause decay, thereby turning the hide into
leather. Specifically, the process is: (1) prepare to tan (cure and
clean); (2) tan and (3) finish. "Tanning" can also refer to step two in
the process when collagen fibers in the hide react with tanning agents
to make hides more durable and flexible.
![](media/image4.wmf){width="3.227777777777778in"
height="2.561111111111111in"}

To prepare for tanning, raw hides for use in the US can be iced and sent
to a tannery if put into tanning drums within 24 hours or so. However,
hides bound for overseas have to use a brine salt process to preserve
them for storage and transport since hides, like meat, are otherwise
perishable. According to an industry contact, about 85 percent of U.S.
production goes from the kill floor into a brine filled raceway that has
a 96 percent saline content. Such a concentrated salt solution ensures
protein destroying organisms can't function. This takes about 12-18
hours to "cure" (salt) the hides. Then they are graded, selected, stored
and shipped for export to China where hides are subjected to "beam house
operations" (soaked, limed, unhaired, scudded, fleshed, delimed and
pickled); tanned (usually via mineral tanning using chromium) and
finished according to the final leather product in mind (e.g.,
conditioned, dyed, split, embossed, shaved, buffed or sprayed).

According to a trade contact, perhaps 10 percent of total U.S. hides
exported to China is "wet blue" which is considered semi-processed. That
means the hide has undergone beamhouse operations (described above) at
an American packing house. They are tanned in large rotating drums
during which hides react with chromium sulphate. This makes them look
wet and blue, hence the name "wet blue." Hides are then passed through
rollers to remove excess tanning liquor before packing for export to
China where wet blues are finished.

# III. Evolution of the Chinese industry and where leather goods are produced

South Korea and Taiwan were first to develop their leather industries in
Asia. However, increasing concerns for the natural environment and
higher labor costs drove manufacturers to relocate their operations on
the mainland where leading producers entered some 20 years

ago. South Korean companies concentrated their factories in north and
northeast China while Taiwanese and Hong Kong investors predominate in
the South and Eastern provinces.

According to the *China* *Leather Industry Association*, the country
housed 2,900 leather manufacturers and produced 7.5 billion square feet
(700 million square meters) of leather, representing 20 percent of the
world's total leather production in 2006.

Key manufacturing centers include Guangzhou, Dongguan and Nanhai in
Guangdong province to the south and Jinjiang in bordering Fujian
province. Also, Wenzhou in Zhejiang province of eastern China, and Xinji
in Hebei province to the north are the major leather manufacturing bases
in China.

![](media/image5.wmf){width="3.247916666666667in"
height="2.441666666666667in"}

Wenzhou (*near Shanghai*) and Haining of Zhejiang Province focus more on
shoe uppers, while tanneries are mostly found in Southern China
producing leather for hand bags, belts and furniture. Shandong province
used to produce more garments. However, consumers in its major market,
Russia, have switched preference to other materials, such as feather,
thus there has been a shift towards shoe uppers and furniture
upholstery. Guangdong manufacturers tend to focus on leather shoes and
hand bag production. Since the south has more temperate winters than the
north, demand for leather garments tends to be limited to the cooler
months of winter from December to March. (*Refer to Appendix, Table 8 -
China's Major Leather Product Manufacturing Leather Areas*)

With more than 20 years of development, Guangdong leather product
manufacturers have accumulated experience and developed a reputation for
producing export quality products. They kept a sharp eye on
international fashion trends and used modern production technology and
management. This enabled them to successfully produce higher quality
products for export more reliably compared to local rivals.

In recent years, local government authorities have started to pay more
attention to the leather industry's impact on the environment. Some
cities have already announced they will prohibit leather tanning in
their jurisdictions. In response, the industry has already started
relocating some of their tanning facilities to less developed regions in
the mainland and/or importing wet blue skins from other sources. For
example, one Guangdong based leather shoe manufacturer moved his tanning
factory to Vietnam and brings in the finished leather to Guangdong for
shoe production.

# IV. The Chinese leather industry faces many challenges

![](media/image6.wmf){width="3.9166666666666665in"
height="2.982638888888889in"}With more than two decades of development,
the local leather and related industries have started to mature. In
2006, China imported US\$5.6 billion worth of hides and skins, an
increase of 15.38 percent from 2005.

Local industry sources also say China exported US\$12.4 billion worth of
leather products in 2006, 8.6 percent more than the previous year.

***Environmental***

However, rising concerns about the environmental impact of tanneries,
particularly discharged waste water, limit development of the industry.

*Source: World Trade Atlas*

Waste water treatment facilities require substantial capital investment
and adherence to strict regulatory practices adding to costs & reducing
margins. Bigger tanneries can afford their own facilities, but smaller
tanneries cannot, thereby contributing to consolidation of the industry.

Local governments in developed areas have limited or even prohibited
tanneries in their regions. For example tanneries in Shenzhen have moved
to Dongguan and Huidong in Guangdong and Guangxi Province. Hangzhou is
another city that has banned tanneries.

At the same time other developed areas have also implemented strict
regulations to limit expansion of tanneries.

In response, some tanneries have moved to less developed areas, where
centralized tanning industry production zones have been established,
such as Qingyuan and Huizhou in Guangdong province, Zhaoyuan in
Heilongjiang province, Baicheng in Jilin Province and Quanzhou in Fujian
Province.

**Increased competition**

The Chinese leather industry is facing increased competition from
surrounding countries, such as Vietnam and India, where there are
cheaper labor and less environmental policy restrictions. Industry
insiders say that while India has not picked up any Chinese tanneries,
it is looking into expanding leather production to compete with China.
Its environmental and waste water pollution issues are becoming just as
important as in China.

***Price***

Meanwhile, prices for raw hides have risen because of increased demand.
For example, U.S. steer hides in 2004 for branded steers hides cost up
to \$55 per hide unit while prices in 2007 at the beginning of the year
ran as high as \$66, but have declined to a high of \$59 towards the end
of the year.

***Labor costs***

For manufacturers, labor costs are also rising rapidly, further
squeezing operating margins. For example skilled worker salaries doubled
in the past two years (up from US\$100 to US\$200 per month).

***VAT issues***

Another recent issue impacting the Chinese leather industry is the
latest revision to the Value Added Tax (VAT) policy. Three government
agencies (*Ministry of Finance, State Administration of Taxation and
China Customs*) jointly announced on March 30, 2007 that tariffs for Wet
Blue skins would be subjected to regular import duties of 7 percent and
a an additional 17 percent VAT, if converted into finished leather, then
re-exported (Decree #15). However, if skins are eventually converted
into valued added products, such as footwear or other finished leather
products, and then re-exported, the tariff and VAT are exempted.

On June 19, 2007, the *Chinese Ministry of Finance and State
Administration of Taxation* jointly announced Circular No. 90 to adjust
tax rebates for certain leather products. Starting from July 1, 2007,
the rebate for leather footwear and bags was lowered from 13 percent to
11 percent. The rebate rate for leather apparel and gloves decreased
from the original 13 percent to 5 percent, and all tax rebates for the
exportation of finished leather terminated, owing to global pressure to
lower governmental support.

The new policy demonstrates the central government's intent to limit the
export of leather (which is not value-added) and slow the demand for
leather goods (which are value-added).

***Lack of brands and OEM
status***![](media/image7.wmf){width="3.0631944444444446in"
height="2.2881944444444446in"}

For Chinese operators it's a lack of brand name and their OEM status
that handicaps them from increasing margins.

In recent years a few manufacturers started to develop their own brands
to increase margins. For example *Anta* sports shoes and *361°* casual
shoes (from Jinjiang, Fujian) and *Belle* ladies fashion shoes (from
Shenzhen) have enjoyed moderate local success with this strategy.

Industry watchers estimate OEM and self-branded shoe producers are
almost equal in terms of relative market shares.

***Appreciation of the Chinese Yuan***

Another growing concern for local manufactures is the appreciation of
the Chinese Yuan (RMB). In October 2007, the exchange rate was US\$1 to
RMB7.48, a 2 percent increase from July 2007. The stronger RMB just
about dissolved OEM operating margins previously signed in U.S. dollars.

***Other***

Other challenges include European trade barriers, anti-dumping taxes and
strict quota systems imposed by many countries against Chinese exports
including leather products. Growing preference for synthetics to use as
a leather substitute could impede leather sales. The Longwan district in
the city of Wenzhou (in Zhejiang Province) has become the largest
artificial leather production base in the country with goods valued
US\$60 million annually and accounting for 40 percent of China's total
(according to *People's Daily Online*). However, Chinese traders that
Post talked to did not believe synthetics were a threat as leather is
still prized as a quality item. Demand for leather has gone up
exponentially with the rise of the Chinese middle class.

# 

# V. How U.S. hides make their way to China

Most hides exported to China come from cattle raised in America's
heartland with Texas and Nebraska as the largest suppliers. There are
basically four parties involved in the business: (1) meat packers; (2)
hide processors; (3) traders (dealers) and brokers: and (4) agents.

In the States, packers can be fully integrated meaning they own the
feedlots, slaughter facility as well as hides processing plant. There
are four fully integrated U.S. companies that process 85 percent of the
hides.

Other packers may not own feedlots and sell live animals to the
processor. At the slaughter house, hides are separated from the meat.
Some slaughter houses process the hides themselves while others sell
them to processors. Most packers flesh and cure, but if not, then the
processor does it.

When a processor buys packer hides, they are typically sent to him
"green," meaning just off the kill floor. He puts them in his
raceway/brine tank. Most hides for export are sold in a brine cured
state and shipped to China or other export destinations.

Traders (dealers) buy from the packer, take ownership of the hides and
sell to the processor. By comparison, brokers act as an agent, but don't
take ownership of the hides. He earns a commission by putting buyer and
seller together. U.S. processors may deal directly with Chinese
tanneries or through sales agents, traders and/or brokers.

The U.S. exporter pays the sales agent in China and elsewhere a
commission on what is sold to support sales efforts. Chinese tanners may
call the agent for service if there are any issues or concerns.

The types of hides sold to China include branded steers, branded
heifers, butt branded (brand placed on butt rather on the side as is the
usual practice which gives more useable surface area) or Number 3 Packer
Hides (some damage on hide from cow that's scraped itself; by fleshing
machine or during slaughter. These are not wounded animals.) Hides from
branded steer are used to make shoes as they are thicker and heavier.
Furniture uses hides from dairy cows that have more surface area. Car
seats can use lower graded leather.

U.S. suppliers usually transport their hides to China in shipping
containers from the west coast (California, Washington, Oregon).
Shipping time generally takes three weeks to China and runs about
\$2,000 per container. Freight charges continually increase due to a
monopoly by steamship companies and rising fuel costs. Major ports for
the mainland include Qingdao, Shanghai, Hangzhou, Guangzhou, Xiamen,
Shenzhen and Hong Kong. Depending on the size of a hide, containers hold
around 640 to 680 steer hides or 880 branded heifers.

######## Leather Products Production Process Flow Chart



>   

 

> 
>
> 
>
>  



>  

# VI. There are two U.S. industry associations

![](media/image8.wmf){width="2.5340277777777778in" height="3.38125in"}

The *U.S. Hide, Skin & Leather Association* (USHSLA) is the exclusive
representative of the hides and skin industry in the United States.
Member companies include meat packers, hide processors, brokers, dealers
and exporters. It is a Washington D.C. based association that helps the
industry explore market opportunities and maintain and further expand
market share of U.S. skins and hides.

The association regularly organizes industry events for members, such as
the *All China Leather Exhibition* (ACLE) in Shanghai and the *Asia
Pacific Leather Fair* (APLF) in Hong Kong. Both events enable exporters
to network and meet new buyers as well as maintain existing
relationships.

USHSLA recently translated their industry *Standards Governing the
Export of North American Cattle Hides* into Chinese. This initiative
helps local manufacturers and traders better understand U.S standards
and thereby mitigate misunderstandings.

The *Leather Industries of America* (LIA) has represented American
tanners and suppliers since 1917. The association provides various
services for its members including environmental, technical and
marketing support. However, demand for U.S. finished leather is limited
in China, because of its higher price.

To further promote U.S. exports, these industry associations are
strongly urged to consider organizing more trade seminars to further
educate local tanneries and leather product manufacturers about the
merits of using U.S. leather while paying a higher premium.

At the same time PR initiatives are needed to further promote U.S.
leather's image to cultivate consumer preference towards U.S. origin
hides.

By approaching Chinese buyers in a unified way, producers build a solid
platform for promoting U.S. hides as the better product of choice.

# VII. U.S. hides have advantages, yet face challenges

U.S. hides are well known for their superior quality because of their
thickness, strength, larger surface (so there's more usable area),
consistent quality and smooth appearance. This ensures higher quality
for final leather products. Therefore, prices tend to be higher than
competitors'. However, if the customer needs to manufacture top quality
leather products, U.S. hides will help them achieve premium prices. One
of the major U.S. hides importer noted that consistent and sufficient
supply from the U.S. is the main reason that keeps him coming back for
more. The US slaughters roughly 650,000 animals every week.

Some of the traders believed that the industry could encourage cattlemen
to skip branding to get higher revenue. Post was told by an industry
source that this would bring in an additional \$3.00 a hide, about an
additional \$2,000 per container. However, another source informed Post
that most U.S. feedlots would not be willing to stop the common practice
of branding. Nevertheless, Chinese importers can still buy non-branded
hides if willing to pay a premium for non-branded hides.

![](media/image9.wmf){width="2.245138888888889in"
height="3.0680555555555555in"}

According to industry sources, there are a few minor issues that may
delay the release of containers of American hides and skins at Chinese
ports.

Reportedly, there have been minor complaints from port inspectors about
leaky containers and odor. However, most American traders Post talked to
stated they did not know of any port hold-ups.

U.S. exports could be impacted by China's downscaling its tanning
industry because of environmental concerns, yet China has spent much to
build up the industry with substantial employment to boot.

Accordingly, USHSLA expects that 20 percent of exports of U.S. hides
could shift from China to outside countries within five years as
tanneries further develop. To further support this migration, U.S.
industry representatives have already organized trade missions to India
and Turkey and plan to visit Vietnam to further assess the market.

# VIII. Post Contact Information

For further information about the China market, as well as updates on
our upcoming events and activities, please visit our website at
[www.usdachina.org](http://www.usdachina.org/) or contact any of the
following:

**FAS/Office of Agricultural Affairs (OAA), Beijing**

5-2 Qijiayuan Diplomatic Compound

Jianguomenwai, Beijing, China, 100600

Tel: (86 10) 6532-1953

Fax: (86 10) 6532-2962

E-mail: <agbeijing@fas.usda.gov>

**Agricultural Trade Office (ATO), Beijing**

Kerry Center, South Tower

24^th^ Floor Suite #2425

No. 1 Guanghua Lu, Beijing 100020

Tel: (86 10) 8529-6418

Fax: (86 10) 8529-6692

E-mail: <atobeijing@fas.usda.gov>

**IPR Office**

E-mail: <yuanchuan.liang@fas.usda.gov>

**Agricultural Trade Office (ATO), Guangzhou**

14/F, Office Tower

China Hotel, Guangzhou 510015

Tel: (86 20) 8667-7553

Fax: (86 20) 8666-0703

E-mail: <atoguangzhou@fas.usda.gov>

**Agricultural Trade Office (ATO), Shangha**i

Shanghai Center, Suite 331

1376 Nanjing West Road

Shanghai 200040

Tel: (86 21) 6279-8622

Fax: (86 21) 6279-8336

E-mail: <atoshanghai@fas.usda.gov>

**Agricultural Trade Office (ATO), Chengdu**

Kevin Latner

U.S. Consulate General

Chengdu Agricultural Trade Office

4 Lingshiguan Lu

Chengdu, Sichuan, PRC 610041

Tel: +86 13808212410

Fax: +86 28 8513 8698

Email: Kevin.latner@usda.gov

**Agricultural Trade Office (ATO), Shenyang**

Jim Butterworth

E-mail: James.Butterworth@fas.usda.gov

(Office to be opened 2008)

**Animal and Plant Health Inspection Service (APHIS), Beijing**

Room 618, Beijing International Club Office Building

No. 21 Jianguomenwai Avenue

Beijing, China 100020

Tel: (86 10) 6532-3212

Fax: (86 10) 6532-5813

E-mail: <Theresa.boyle@aphis.usda.gov>

**IX. Industry Associations:**

**U.S. Hide, Skin & Leather Association**

Website: [www.ushsla.org](http://www.ushsla.org/)

**Leather Industries of America**

Website: [www.leatherusa.com](http://www.leatherusa.com/)

**China Leather Industry Association (in Beijing)**

Website: www.china-leather.org

# VIII. A p p e n d i x

+---+-----------------------+-----------+---------+--------+--------+
| # |                       |           |         |        |        |
|   |                       |           |         |        |        |
|   |                       |           |         |        |        |
| T |                       |           |         |        |        |
| a |                       |           |         |        |        |
| b |                       |           |         |        |        |
| l |                       |           |         |        |        |
| e |                       |           |         |        |        |
|   |                       |           |         |        |        |
| 1 |                       |           |         |        |        |
| : |                       |           |         |        |        |
|   |                       |           |         |        |        |
| U |                       |           |         |        |        |
| . |                       |           |         |        |        |
| S |                       |           |         |        |        |
| . |                       |           |         |        |        |
|   |                       |           |         |        |        |
| H |                       |           |         |        |        |
| i |                       |           |         |        |        |
| d |                       |           |         |        |        |
| e |                       |           |         |        |        |
| s |                       |           |         |        |        |
|   |                       |           |         |        |        |
| E |                       |           |         |        |        |
| x |                       |           |         |        |        |
| p |                       |           |         |        |        |
| o |                       |           |         |        |        |
| r |                       |           |         |        |        |
| t |                       |           |         |        |        |
|   |                       |           |         |        |        |
| T |                       |           |         |        |        |
| o |                       |           |         |        |        |
| p |                       |           |         |        |        |
|   |                       |           |         |        |        |
| 1 |                       |           |         |        |        |
| 0 |                       |           |         |        |        |
|   |                       |           |         |        |        |
| M |                       |           |         |        |        |
| a |                       |           |         |        |        |
| r |                       |           |         |        |        |
| k |                       |           |         |        |        |
| e |                       |           |         |        |        |
| t |                       |           |         |        |        |
| s |                       |           |         |        |        |
|   |                       |           |         |        |        |
| i |                       |           |         |        |        |
| n |                       |           |         |        |        |
| m |                       |           |         |        |        |
| i |                       |           |         |        |        |
| l |                       |           |         |        |        |
| l |                       |           |         |        |        |
| i |                       |           |         |        |        |
| o |                       |           |         |        |        |
| n |                       |           |         |        |        |
| s |                       |           |         |        |        |
| o |                       |           |         |        |        |
| f |                       |           |         |        |        |
| U |                       |           |         |        |        |
| . |                       |           |         |        |        |
| S |                       |           |         |        |        |
| . |                       |           |         |        |        |
| D |                       |           |         |        |        |
| o |                       |           |         |        |        |
| l |                       |           |         |        |        |
| l |                       |           |         |        |        |
| a |                       |           |         |        |        |
| r |                       |           |         |        |        |
| s |                       |           |         |        |        |
+---+-----------------------+-----------+---------+--------+--------+
|   | **Country/Region**    | **2004**  | *       | **     | **% of |
|   |                       |           | *2005** | 2006** | s      |
|   |                       |           |         |        | hare** |
+---+-----------------------+-----------+---------+--------+--------+
| 1 | China                 | 580.43    | 675.16  | 876.77 | 30.49% |
+---+-----------------------+-----------+---------+--------+--------+
| 2 | Mexico                | 651.46    | 561.75  | 423.01 | 14.71% |
+---+-----------------------+-----------+---------+--------+--------+
| 3 | South Korea           | 396.33    | 370.97  | 355.11 | 12.35% |
+---+-----------------------+-----------+---------+--------+--------+
| 4 | Hong Kong             | 336.20    | 260.64  | 318.28 | 11.07% |
+---+-----------------------+-----------+---------+--------+--------+
| 5 | Taiwan                | 199.43    | 183.16  | 212.18 | 7.38%  |
+---+-----------------------+-----------+---------+--------+--------+
| 6 | Italy                 | 142.03    | 190.01  | 198.00 | 6.89%  |
+---+-----------------------+-----------+---------+--------+--------+
| 7 | Japan                 | 111.14    | 82.06   | 94.75  | 3.30%  |
+---+-----------------------+-----------+---------+--------+--------+
| 8 | Dominican Republic    | 48.00     | 81.64   | 67.08  | 2.33%  |
+---+-----------------------+-----------+---------+--------+--------+
| 9 | Thailand              | 68.31     | 66.05   | 59.42  | 2.07%  |
+---+-----------------------+-----------+---------+--------+--------+
| 1 | Costa Rica            | 18.32     | 44.94   | 41.52  | 1.44%  |
| 0 |                       |           |         |        |        |
+---+-----------------------+-----------+---------+--------+--------+
|   | Total                 | 2,782.61  | 2       | 2,     | 100%   |
|   |                       |           | ,723.25 | 875.80 |        |
+---+-----------------------+-----------+---------+--------+--------+

Source: *World Trade Atlas*

+---+-----------------------+-----------+---------+--------+--------+
| # |                       |           |         |        |        |
|   |                       |           |         |        |        |
|   |                       |           |         |        |        |
| T |                       |           |         |        |        |
| a |                       |           |         |        |        |
| b |                       |           |         |        |        |
| l |                       |           |         |        |        |
| e |                       |           |         |        |        |
|   |                       |           |         |        |        |
| 2 |                       |           |         |        |        |
| : |                       |           |         |        |        |
|   |                       |           |         |        |        |
| C |                       |           |         |        |        |
| h |                       |           |         |        |        |
| i |                       |           |         |        |        |
| n |                       |           |         |        |        |
| a |                       |           |         |        |        |
|   |                       |           |         |        |        |
| H |                       |           |         |        |        |
| i |                       |           |         |        |        |
| d |                       |           |         |        |        |
| e |                       |           |         |        |        |
| s |                       |           |         |        |        |
|   |                       |           |         |        |        |
| a |                       |           |         |        |        |
| n |                       |           |         |        |        |
| d |                       |           |         |        |        |
|   |                       |           |         |        |        |
| S |                       |           |         |        |        |
| k |                       |           |         |        |        |
| i |                       |           |         |        |        |
| n |                       |           |         |        |        |
| s |                       |           |         |        |        |
|   |                       |           |         |        |        |
| - |                       |           |         |        |        |
|   |                       |           |         |        |        |
| D |                       |           |         |        |        |
| i |                       |           |         |        |        |
| r |                       |           |         |        |        |
| e |                       |           |         |        |        |
| c |                       |           |         |        |        |
| t |                       |           |         |        |        |
|   |                       |           |         |        |        |
| I |                       |           |         |        |        |
| m |                       |           |         |        |        |
| p |                       |           |         |        |        |
| o |                       |           |         |        |        |
| r |                       |           |         |        |        |
| t |                       |           |         |        |        |
|   |                       |           |         |        |        |
| T |                       |           |         |        |        |
| o |                       |           |         |        |        |
| p |                       |           |         |        |        |
|   |                       |           |         |        |        |
| 1 |                       |           |         |        |        |
| 0 |                       |           |         |        |        |
|   |                       |           |         |        |        |
| O |                       |           |         |        |        |
| r |                       |           |         |        |        |
| i |                       |           |         |        |        |
| g |                       |           |         |        |        |
| i |                       |           |         |        |        |
| n |                       |           |         |        |        |
| s |                       |           |         |        |        |
|   |                       |           |         |        |        |
| i |                       |           |         |        |        |
| n |                       |           |         |        |        |
| m |                       |           |         |        |        |
| i |                       |           |         |        |        |
| l |                       |           |         |        |        |
| l |                       |           |         |        |        |
| i |                       |           |         |        |        |
| o |                       |           |         |        |        |
| n |                       |           |         |        |        |
| s |                       |           |         |        |        |
| o |                       |           |         |        |        |
| f |                       |           |         |        |        |
| U |                       |           |         |        |        |
| . |                       |           |         |        |        |
| S |                       |           |         |        |        |
| . |                       |           |         |        |        |
| D |                       |           |         |        |        |
| o |                       |           |         |        |        |
| l |                       |           |         |        |        |
| l |                       |           |         |        |        |
| a |                       |           |         |        |        |
| r |                       |           |         |        |        |
| s |                       |           |         |        |        |
+---+-----------------------+-----------+---------+--------+--------+
|   | **Country/Region**    | **2004**  | *       | **     | **% of |
|   |                       |           | *2005** | 2006** | s      |
|   |                       |           |         |        | hare** |
+---+-----------------------+-----------+---------+--------+--------+
| 1 | United States         | 774.24    | 842.73  | 1,     | 18.91% |
|   |                       |           |         | 052.94 |        |
+---+-----------------------+-----------+---------+--------+--------+
| 2 | Italy                 | 354.19    | 391.34  | 527.83 | 9.48%  |
+---+-----------------------+-----------+---------+--------+--------+
| 3 | Brazil                | 303.75    | 377.57  | 520.72 | 9.35%  |
+---+-----------------------+-----------+---------+--------+--------+
| 4 | Taiwan                | 611.60    | 549.04  | 519.05 | 9.32%  |
+---+-----------------------+-----------+---------+--------+--------+
| 5 | South Korea           | 595.50    | 530.83  | 802.71 | 9.03%  |
+---+-----------------------+-----------+---------+--------+--------+
| 6 | Australia             | 359.98    | 339.57  | 337.34 | 6.06%  |
+---+-----------------------+-----------+---------+--------+--------+
| 7 | Argentina             | 105.53    | 129.86  | 170.16 | 3.06%  |
+---+-----------------------+-----------+---------+--------+--------+
| 8 | India                 | 106.53    | 125.05  | 151.85 | 2.73%  |
+---+-----------------------+-----------+---------+--------+--------+
| 9 | Thailand              | 93.60     | 101.83  | 120.80 | 2.17%  |
+---+-----------------------+-----------+---------+--------+--------+
| 1 | Canada                | 128.66    | 154.73  | 104.04 | 1.87%  |
| 0 |                       |           |         |        |        |
+---+-----------------------+-----------+---------+--------+--------+
|   | Total                 | 4,594.67  | 4       | 5,     | 100%   |
|   |                       |           | ,826.13 | 568.24 |        |
+---+-----------------------+-----------+---------+--------+--------+

Source: *World Trade Atlas*

+---+----------------------+-----------+---------+--------+---------+
| # |                      |           |         |        |         |
|   |                      |           |         |        |         |
|   |                      |           |         |        |         |
| T |                      |           |         |        |         |
| a |                      |           |         |        |         |
| b |                      |           |         |        |         |
| l |                      |           |         |        |         |
| e |                      |           |         |        |         |
|   |                      |           |         |        |         |
| 3 |                      |           |         |        |         |
| : |                      |           |         |        |         |
|   |                      |           |         |        |         |
| H |                      |           |         |        |         |
| o |                      |           |         |        |         |
| n |                      |           |         |        |         |
| g |                      |           |         |        |         |
|   |                      |           |         |        |         |
| K |                      |           |         |        |         |
| o |                      |           |         |        |         |
| n |                      |           |         |        |         |
| g |                      |           |         |        |         |
|   |                      |           |         |        |         |
| H |                      |           |         |        |         |
| i |                      |           |         |        |         |
| d |                      |           |         |        |         |
| e |                      |           |         |        |         |
| s |                      |           |         |        |         |
|   |                      |           |         |        |         |
| a |                      |           |         |        |         |
| n |                      |           |         |        |         |
| d |                      |           |         |        |         |
|   |                      |           |         |        |         |
| S |                      |           |         |        |         |
| k |                      |           |         |        |         |
| i |                      |           |         |        |         |
| n |                      |           |         |        |         |
| s |                      |           |         |        |         |
|   |                      |           |         |        |         |
| - |                      |           |         |        |         |
|   |                      |           |         |        |         |
| D |                      |           |         |        |         |
| i |                      |           |         |        |         |
| r |                      |           |         |        |         |
| e |                      |           |         |        |         |
| c |                      |           |         |        |         |
| t |                      |           |         |        |         |
|   |                      |           |         |        |         |
| I |                      |           |         |        |         |
| m |                      |           |         |        |         |
| p |                      |           |         |        |         |
| o |                      |           |         |        |         |
| r |                      |           |         |        |         |
| t |                      |           |         |        |         |
|   |                      |           |         |        |         |
| T |                      |           |         |        |         |
| o |                      |           |         |        |         |
| p |                      |           |         |        |         |
|   |                      |           |         |        |         |
| 1 |                      |           |         |        |         |
| 0 |                      |           |         |        |         |
|   |                      |           |         |        |         |
| O |                      |           |         |        |         |
| r |                      |           |         |        |         |
| i |                      |           |         |        |         |
| g |                      |           |         |        |         |
| i |                      |           |         |        |         |
| n |                      |           |         |        |         |
| s |                      |           |         |        |         |
|   |                      |           |         |        |         |
| i |                      |           |         |        |         |
| n |                      |           |         |        |         |
| m |                      |           |         |        |         |
| i |                      |           |         |        |         |
| l |                      |           |         |        |         |
| l |                      |           |         |        |         |
| i |                      |           |         |        |         |
| o |                      |           |         |        |         |
| n |                      |           |         |        |         |
| s |                      |           |         |        |         |
| o |                      |           |         |        |         |
| f |                      |           |         |        |         |
| U |                      |           |         |        |         |
| . |                      |           |         |        |         |
| S |                      |           |         |        |         |
| . |                      |           |         |        |         |
| D |                      |           |         |        |         |
| o |                      |           |         |        |         |
| l |                      |           |         |        |         |
| l |                      |           |         |        |         |
| a |                      |           |         |        |         |
| r |                      |           |         |        |         |
| s |                      |           |         |        |         |
+---+----------------------+-----------+---------+--------+---------+
|   | **Country/Region**   | **2004**  | *       | **     | **% of  |
|   |                      |           | *2005** | 2006** | share** |
+---+----------------------+-----------+---------+--------+---------+
| 1 | China                | 689.06    | 775.51  | 590.42 | 21.62%  |
+---+----------------------+-----------+---------+--------+---------+
| 2 | Italy                | 431.71    | 446.22  | 457.57 | 16.75%  |
+---+----------------------+-----------+---------+--------+---------+
| 3 | India                | 184.86    | 200.16  | 217.69 | 7.97%   |
+---+----------------------+-----------+---------+--------+---------+
| 4 | United States        | 234.10    | 256.58  | 207.24 | 7.59%   |
+---+----------------------+-----------+---------+--------+---------+
| 5 | Brazil               | 170.21    | 212.62  | 207.13 | 7.58%   |
+---+----------------------+-----------+---------+--------+---------+
| 6 | South Korea          | 154.07    | 148.89  | 135.66 | 4.97%   |
+---+----------------------+-----------+---------+--------+---------+
| 7 | Argentina            | 96.34     | 115.75  | 115.31 | 4.22%   |
+---+----------------------+-----------+---------+--------+---------+
| 8 | Taiwan               | 81.17     | 85.12   | 100.64 | 3.69%   |
+---+----------------------+-----------+---------+--------+---------+
| 9 | Thailand             | 93.62     | 84.33   | 84.37  | 3.09%   |
+---+----------------------+-----------+---------+--------+---------+
| 1 | Pakistan             | 49.40     | 67.28   | 81.09  | 2.97%   |
| 0 |                      |           |         |        |         |
+---+----------------------+-----------+---------+--------+---------+
|   | Total                | 2,672.13  | 2       | 2,     | 100%    |
|   |                      |           | ,879.53 | 731.38 |         |
+---+----------------------+-----------+---------+--------+---------+

Source: *World Trade Atlas*

+----+---------------------+---------+----------+---------+---------+
| #  |                     |         |          |         |         |
|    |                     |         |          |         |         |
| Ta |                     |         |          |         |         |
| bl |                     |         |          |         |         |
| e  |                     |         |          |         |         |
| 4: |                     |         |          |         |         |
|  M |                     |         |          |         |         |
| aj |                     |         |          |         |         |
| or |                     |         |          |         |         |
|  C |                     |         |          |         |         |
| hi |                     |         |          |         |         |
| ne |                     |         |          |         |         |
| se |                     |         |          |         |         |
|  P |                     |         |          |         |         |
| or |                     |         |          |         |         |
| ts |                     |         |          |         |         |
|  f |                     |         |          |         |         |
| or |                     |         |          |         |         |
|  I |                     |         |          |         |         |
| mp |                     |         |          |         |         |
| or |                     |         |          |         |         |
| te |                     |         |          |         |         |
| d  |                     |         |          |         |         |
| U. |                     |         |          |         |         |
| S. |                     |         |          |         |         |
|  H |                     |         |          |         |         |
| id |                     |         |          |         |         |
| es |                     |         |          |         |         |
|    |                     |         |          |         |         |
| in |                     |         |          |         |         |
| mi |                     |         |          |         |         |
| ll |                     |         |          |         |         |
| io |                     |         |          |         |         |
| ns |                     |         |          |         |         |
| of |                     |         |          |         |         |
| U. |                     |         |          |         |         |
| S. |                     |         |          |         |         |
| D  |                     |         |          |         |         |
| ol |                     |         |          |         |         |
| la |                     |         |          |         |         |
| rs |                     |         |          |         |         |
+----+---------------------+---------+----------+---------+---------+
|    | **Port/Province**   | *       | **2005** | *       | **2006  |
|    |                     | *2004** |          | *2006** | % of    |
|    |                     |         |          |         | share** |
+----+---------------------+---------+----------+---------+---------+
| 1  | Qingdao, Shandong   | 206.26  | 219.29   | 242.59  | 23.04%  |
|    | Province            |         |          |         |         |
+----+---------------------+---------+----------+---------+---------+
| 2  | Shanghai            | 85.68   | 131.98   | 171.19  | 16.26%  |
+----+---------------------+---------+----------+---------+---------+
| 3  | Hangzhou, Zhejiang  | 98.76   | 97.26    | 129.77  | 12.32%  |
|    | Province            |         |          |         |         |
+----+---------------------+---------+----------+---------+---------+
| 4  | Huangpu, Guangdong  | 60.54   | 52.97    | 84.12   | 7.99%   |
+----+---------------------+---------+----------+---------+---------+
| 5  | Nanjing, Jiangsu    | 53.06   | 68.64    | 82.60   | 7.85%   |
|    | Province            |         |          |         |         |
+----+---------------------+---------+----------+---------+---------+
| 6  | Xiamen, Fujian      | 47.87   | 56.80    | 76.18   | 7.24%   |
|    | Province            |         |          |         |         |
+----+---------------------+---------+----------+---------+---------+
| 7  | Shenzhen, Guangdong | 32.08   | 40.47    | 52.46   | 4.98%   |
|    | Province            |         |          |         |         |
+----+---------------------+---------+----------+---------+---------+
| 8  | Tianjin             | 23.78   | 34.31    | 46.23   | 4.39%   |
+----+---------------------+---------+----------+---------+---------+
| 9  | Guangzhou,          | 42.11   | 29.02    | 41.99   | 3.99%   |
|    | Guangdong Province  |         |          |         |         |
+----+---------------------+---------+----------+---------+---------+
| 10 | Gongbei, Guangdong  | 44.51   | 39.53    | 40.20   | 3.82%   |
|    | Province            |         |          |         |         |
+----+---------------------+---------+----------+---------+---------+
| T  |                     | 774.24  | 842.73   | 1       | 100%    |
| ot |                     |         |          | ,052.94 |         |
| al |                     |         |          |         |         |
| i  |                     |         |          |         |         |
| mp |                     |         |          |         |         |
| or |                     |         |          |         |         |
| ts |                     |         |          |         |         |
+----+---------------------+---------+----------+---------+---------+

Source: *World Trade Atlas/China Customs*

+---+----------------------+-----------+---------+---------+--------+
| # |                      |           |         |         |        |
|   |                      |           |         |         |        |
|   |                      |           |         |         |        |
| T |                      |           |         |         |        |
| a |                      |           |         |         |        |
| b |                      |           |         |         |        |
| l |                      |           |         |         |        |
| e |                      |           |         |         |        |
|   |                      |           |         |         |        |
| 5 |                      |           |         |         |        |
| : |                      |           |         |         |        |
|   |                      |           |         |         |        |
| C |                      |           |         |         |        |
| h |                      |           |         |         |        |
| i |                      |           |         |         |        |
| n |                      |           |         |         |        |
| a |                      |           |         |         |        |
|   |                      |           |         |         |        |
| L |                      |           |         |         |        |
| e |                      |           |         |         |        |
| a |                      |           |         |         |        |
| t |                      |           |         |         |        |
| h |                      |           |         |         |        |
| e |                      |           |         |         |        |
| r |                      |           |         |         |        |
|   |                      |           |         |         |        |
| P |                      |           |         |         |        |
| r |                      |           |         |         |        |
| o |                      |           |         |         |        |
| d |                      |           |         |         |        |
| u |                      |           |         |         |        |
| c |                      |           |         |         |        |
| t |                      |           |         |         |        |
| s |                      |           |         |         |        |
|   |                      |           |         |         |        |
| - |                      |           |         |         |        |
|   |                      |           |         |         |        |
| E |                      |           |         |         |        |
| x |                      |           |         |         |        |
| p |                      |           |         |         |        |
| o |                      |           |         |         |        |
| r |                      |           |         |         |        |
| t |                      |           |         |         |        |
|   |                      |           |         |         |        |
| T |                      |           |         |         |        |
| o |                      |           |         |         |        |
| p |                      |           |         |         |        |
|   |                      |           |         |         |        |
| 1 |                      |           |         |         |        |
| 0 |                      |           |         |         |        |
|   |                      |           |         |         |        |
| M |                      |           |         |         |        |
| a |                      |           |         |         |        |
| r |                      |           |         |         |        |
| k |                      |           |         |         |        |
| e |                      |           |         |         |        |
| t |                      |           |         |         |        |
| s |                      |           |         |         |        |
|   |                      |           |         |         |        |
| i |                      |           |         |         |        |
| n |                      |           |         |         |        |
| m |                      |           |         |         |        |
| i |                      |           |         |         |        |
| l |                      |           |         |         |        |
| l |                      |           |         |         |        |
| i |                      |           |         |         |        |
| o |                      |           |         |         |        |
| n |                      |           |         |         |        |
| s |                      |           |         |         |        |
| o |                      |           |         |         |        |
| f |                      |           |         |         |        |
| U |                      |           |         |         |        |
| . |                      |           |         |         |        |
| S |                      |           |         |         |        |
| . |                      |           |         |         |        |
| D |                      |           |         |         |        |
| o |                      |           |         |         |        |
| l |                      |           |         |         |        |
| l |                      |           |         |         |        |
| a |                      |           |         |         |        |
| r |                      |           |         |         |        |
| s |                      |           |         |         |        |
+---+----------------------+-----------+---------+---------+--------+
|   | **Country/Region**   | **2004**  | *       | *       | **% of |
|   |                      |           | *2005** | *2006** | s      |
|   |                      |           |         |         | hare** |
+---+----------------------+-----------+---------+---------+--------+
| 1 | United States        | 3,174.03  | 3       | 3       | 29.18% |
|   |                      |           | ,365.22 | ,619.71 |        |
+---+----------------------+-----------+---------+---------+--------+
| 2 | Japan                | 954.35    | 1       | 1       | 9.74%  |
|   |                      |           | ,048.80 | ,208.30 |        |
+---+----------------------+-----------+---------+---------+--------+
| 3 | Hong Kong            | 932.19    | 1       | 1       | 8.91%  |
|   |                      |           | ,000.26 | ,104.48 |        |
+---+----------------------+-----------+---------+---------+--------+
| 4 | Russia               | 1,120.99  | 1       | 821.39  | 6.62%  |
|   |                      |           | ,177.98 |         |        |
+---+----------------------+-----------+---------+---------+--------+
| 5 | Germany              | 534.75    | 580.32  | 605.57  | 4.88%  |
+---+----------------------+-----------+---------+---------+--------+
| 6 | United Kingdom       | 380.55    | 425.87  | 468.86  | 3.78%  |
+---+----------------------+-----------+---------+---------+--------+
| 7 | Italy                | 290.08    | 357.28  | 427.29  | 3.45%  |
+---+----------------------+-----------+---------+---------+--------+
| 8 | South Korea          | 217.05    | 276.20  | 357.87  | 2.89%  |
+---+----------------------+-----------+---------+---------+--------+
| 9 | France               | 241.09    | 272.58  | 311.00  | 2.51%  |
+---+----------------------+-----------+---------+---------+--------+
| 1 | Canada               | 225.65    | 246.52  | 290.25  | 2.34%  |
| 0 |                      |           |         |         |        |
+---+----------------------+-----------+---------+---------+--------+
|   | Total                | 10,262.57 | 11      | 12      | 100%   |
|   |                      |           | ,423.92 | ,403.42 |        |
+---+----------------------+-----------+---------+---------+--------+

Source: *World Trade Atlas*

+---+----------------------+-----------+---------+--------+--------+
| # |                      |           |         |        |        |
|   |                      |           |         |        |        |
|   |                      |           |         |        |        |
| T |                      |           |         |        |        |
| a |                      |           |         |        |        |
| b |                      |           |         |        |        |
| l |                      |           |         |        |        |
| e |                      |           |         |        |        |
|   |                      |           |         |        |        |
| 6 |                      |           |         |        |        |
| : |                      |           |         |        |        |
|   |                      |           |         |        |        |
| H |                      |           |         |        |        |
| o |                      |           |         |        |        |
| n |                      |           |         |        |        |
| g |                      |           |         |        |        |
|   |                      |           |         |        |        |
| K |                      |           |         |        |        |
| o |                      |           |         |        |        |
| n |                      |           |         |        |        |
| g |                      |           |         |        |        |
|   |                      |           |         |        |        |
| L |                      |           |         |        |        |
| e |                      |           |         |        |        |
| a |                      |           |         |        |        |
| t |                      |           |         |        |        |
| h |                      |           |         |        |        |
| e |                      |           |         |        |        |
| r |                      |           |         |        |        |
|   |                      |           |         |        |        |
| P |                      |           |         |        |        |
| r |                      |           |         |        |        |
| o |                      |           |         |        |        |
| d |                      |           |         |        |        |
| u |                      |           |         |        |        |
| c |                      |           |         |        |        |
| t |                      |           |         |        |        |
| s |                      |           |         |        |        |
|   |                      |           |         |        |        |
| - |                      |           |         |        |        |
|   |                      |           |         |        |        |
| E |                      |           |         |        |        |
| x |                      |           |         |        |        |
| p |                      |           |         |        |        |
| o |                      |           |         |        |        |
| r |                      |           |         |        |        |
| t |                      |           |         |        |        |
|   |                      |           |         |        |        |
| T |                      |           |         |        |        |
| o |                      |           |         |        |        |
| p |                      |           |         |        |        |
|   |                      |           |         |        |        |
| 1 |                      |           |         |        |        |
| 0 |                      |           |         |        |        |
|   |                      |           |         |        |        |
| M |                      |           |         |        |        |
| a |                      |           |         |        |        |
| r |                      |           |         |        |        |
| k |                      |           |         |        |        |
| e |                      |           |         |        |        |
| t |                      |           |         |        |        |
| s |                      |           |         |        |        |
|   |                      |           |         |        |        |
| i |                      |           |         |        |        |
| n |                      |           |         |        |        |
| m |                      |           |         |        |        |
| i |                      |           |         |        |        |
| l |                      |           |         |        |        |
| l |                      |           |         |        |        |
| i |                      |           |         |        |        |
| o |                      |           |         |        |        |
| n |                      |           |         |        |        |
| s |                      |           |         |        |        |
| o |                      |           |         |        |        |
| f |                      |           |         |        |        |
| U |                      |           |         |        |        |
| . |                      |           |         |        |        |
| S |                      |           |         |        |        |
| . |                      |           |         |        |        |
| D |                      |           |         |        |        |
| o |                      |           |         |        |        |
| l |                      |           |         |        |        |
| l |                      |           |         |        |        |
| a |                      |           |         |        |        |
| r |                      |           |         |        |        |
| s |                      |           |         |        |        |
+---+----------------------+-----------+---------+--------+--------+
|   | **Country/Region**   | **2004**  | *       | **     | **% of |
|   |                      |           | *2005** | 2006** | s      |
|   |                      |           |         |        | hare** |
+---+----------------------+-----------+---------+--------+--------+
| 1 | United States        | 2,178.14  | 2       | 2,     | 39.60% |
|   |                      |           | ,221.06 | 295.68 |        |
+---+----------------------+-----------+---------+--------+--------+
| 2 | Japan                | 516.94    | 592.53  | 622.73 | 10.74% |
+---+----------------------+-----------+---------+--------+--------+
| 3 | United Kingdom       | 345.71    | 357.14  | 361.54 | 6.24%  |
+---+----------------------+-----------+---------+--------+--------+
| 4 | Italy                | 205.59    | 240.13  | 307.60 | 5.31%  |
+---+----------------------+-----------+---------+--------+--------+
| 5 | South Korea          | 170.94    | 200.46  | 249.67 | 4.31%  |
+---+----------------------+-----------+---------+--------+--------+
| 6 | Germany              | 233.73    | 258.31  | 233.93 | 4.04%  |
+---+----------------------+-----------+---------+--------+--------+
| 7 | China                | 126.63    | 159.43  | 204.81 | 3.53%  |
+---+----------------------+-----------+---------+--------+--------+
| 8 | France               | 184.13    | 201.58  | 204.51 | 3.53%  |
+---+----------------------+-----------+---------+--------+--------+
| 9 | Canada               | 160.96    | 167.79  | 156.42 | 2.70%  |
+---+----------------------+-----------+---------+--------+--------+
| 1 | Australia            | 125.18    | 127.95  | 128.58 | 2.22%  |
| 0 |                      |           |         |        |        |
+---+----------------------+-----------+---------+--------+--------+
|   | Total                | 5,266.15  | 5       | 5,     | 100%   |
|   |                      |           | ,559.68 | 797.74 |        |
+---+----------------------+-----------+---------+--------+--------+

Source: *World Trade Atlas*

+---+-----------------------+-----------+---------+--------+--------+
| # |                       |           |         |        |        |
|   |                       |           |         |        |        |
|   |                       |           |         |        |        |
| T |                       |           |         |        |        |
| a |                       |           |         |        |        |
| b |                       |           |         |        |        |
| l |                       |           |         |        |        |
| e |                       |           |         |        |        |
|   |                       |           |         |        |        |
| 7 |                       |           |         |        |        |
| : |                       |           |         |        |        |
|   |                       |           |         |        |        |
| U |                       |           |         |        |        |
| . |                       |           |         |        |        |
| S |                       |           |         |        |        |
| . |                       |           |         |        |        |
|   |                       |           |         |        |        |
| L |                       |           |         |        |        |
| e |                       |           |         |        |        |
| a |                       |           |         |        |        |
| t |                       |           |         |        |        |
| h |                       |           |         |        |        |
| e |                       |           |         |        |        |
| r |                       |           |         |        |        |
|   |                       |           |         |        |        |
| P |                       |           |         |        |        |
| r |                       |           |         |        |        |
| o |                       |           |         |        |        |
| d |                       |           |         |        |        |
| u |                       |           |         |        |        |
| c |                       |           |         |        |        |
| t |                       |           |         |        |        |
| s |                       |           |         |        |        |
|   |                       |           |         |        |        |
| - |                       |           |         |        |        |
|   |                       |           |         |        |        |
| I |                       |           |         |        |        |
| m |                       |           |         |        |        |
| p |                       |           |         |        |        |
| o |                       |           |         |        |        |
| r |                       |           |         |        |        |
| t |                       |           |         |        |        |
|   |                       |           |         |        |        |
| T |                       |           |         |        |        |
| o |                       |           |         |        |        |
| p |                       |           |         |        |        |
|   |                       |           |         |        |        |
| 1 |                       |           |         |        |        |
| 0 |                       |           |         |        |        |
|   |                       |           |         |        |        |
| O |                       |           |         |        |        |
| r |                       |           |         |        |        |
| i |                       |           |         |        |        |
| g |                       |           |         |        |        |
| i |                       |           |         |        |        |
| n |                       |           |         |        |        |
| s |                       |           |         |        |        |
|   |                       |           |         |        |        |
| i |                       |           |         |        |        |
| n |                       |           |         |        |        |
| m |                       |           |         |        |        |
| i |                       |           |         |        |        |
| l |                       |           |         |        |        |
| l |                       |           |         |        |        |
| i |                       |           |         |        |        |
| o |                       |           |         |        |        |
| n |                       |           |         |        |        |
| s |                       |           |         |        |        |
| o |                       |           |         |        |        |
| f |                       |           |         |        |        |
| U |                       |           |         |        |        |
| . |                       |           |         |        |        |
| S |                       |           |         |        |        |
| . |                       |           |         |        |        |
| D |                       |           |         |        |        |
| o |                       |           |         |        |        |
| l |                       |           |         |        |        |
| l |                       |           |         |        |        |
| a |                       |           |         |        |        |
| r |                       |           |         |        |        |
| s |                       |           |         |        |        |
+---+-----------------------+-----------+---------+--------+--------+
|   | **Country/Region**    | **2004**  | *       | **     | **% of |
|   |                       |           | *2005** | 2006** | s      |
|   |                       |           |         |        | hare** |
+---+-----------------------+-----------+---------+--------+--------+
| 1 | China                 | 5,709.93  | 6       | 6,     | 72.05% |
|   |                       |           | ,258.25 | 837.32 |        |
+---+-----------------------+-----------+---------+--------+--------+
| 2 | Italy                 | 594.95    | 629.66  | 730.87 | 7.7%   |
+---+-----------------------+-----------+---------+--------+--------+
| 3 | France                | 270.08    | 287.40  | 326.75 | 3.44%  |
+---+-----------------------+-----------+---------+--------+--------+
| 4 | India                 | 248.86    | 242.62  | 246.89 | 2.6%   |
+---+-----------------------+-----------+---------+--------+--------+
| 5 | Vietnam               | 123.94    | 128.73  | 137.30 | 1.45%  |
+---+-----------------------+-----------+---------+--------+--------+
| 6 | Mexico                | 127.63    | 110.04  | 106.91 | 1.13%  |
+---+-----------------------+-----------+---------+--------+--------+
| 7 | Philippines           | 120.41    | 101.92  | 104.67 | 1.1%   |
+---+-----------------------+-----------+---------+--------+--------+
| 8 | Hong Kong             | 129.79    | 120.72  | 103.64 | 1.09%  |
+---+-----------------------+-----------+---------+--------+--------+
| 9 | Indonesia             | 99.48     | 91.62   | 100.93 | 1.06%  |
+---+-----------------------+-----------+---------+--------+--------+
| 1 | Thailand              | 144.01    | 109.77  | 93.75  | 0.99%  |
| 0 |                       |           |         |        |        |
+---+-----------------------+-----------+---------+--------+--------+
|   | Total                 | 8,226.63  | 8       | 9,     | 100%   |
|   |                       |           | ,728.95 | 490.34 |        |
+---+-----------------------+-----------+---------+--------+--------+

Source: *World Trade Atlas*

+-------------------+---------------------------+----------------------+
| #                 |                           |                      |
|   Table 8: China' |                           |                      |
| s Major Leather P |                           |                      |
| roduct Manufactur |                           |                      |
| ing Leather Areas |                           |                      |
+-------------------+---------------------------+----------------------+
| **Major areas for | **Tanning/Cutting**       | **Leather products** |
| leather           |                           |                      |
| industry**        |                           |                      |
+-------------------+---------------------------+----------------------+
| Guangdong         | Shoe uppers, belt, hand   | Shoes, belts, hand   |
|                   | bags and furniture        | bags and leather     |
|                   | upholstery                | furniture            |
+-------------------+---------------------------+----------------------+
| Fujian            | Shoe uppers               | Sports shoes, casual |
|                   |                           | shoes                |
+-------------------+---------------------------+----------------------+
| Zhejiang          | Shoe uppers, garments     | Shoes, garments      |
+-------------------+---------------------------+----------------------+
| Hebei             | Shoe uppers, furniture    | Mostly garments,     |
|                   | upholstery                | shoes                |
+-------------------+---------------------------+----------------------+
| Shandong          | Shoe uppers, furniture    | Shoes, garments      |
|                   | upholstery, garments      |                      |
+-------------------+---------------------------+----------------------+

Source: *ATO/Guangzhou survey*