246
are.
56
Our competitors are securing the trade by supplying merchandise of sufficiently good quality at prices which purchasers of small means can pay. The increase of trade secured by German, Japan and the United States in the China market in recent years—a period in which Great Britain's share has declined -is mainly attributable to price. Price is the determining factor, and no amount of export salesmanship or publicity will ensure a market for goods which are beyond the purchasing power of the consumer, or which are higher in price than other equally suitable goods.
103. It is significant that, compared with pre-war years, Great Britain's export trade has declined, in the main, to countries having a low standard of life. For example, of our total exports the pro- portion going to China was about 25 per cent, lower in 1929 than in 1913, to India 16 per cent. lower, and to Brazil 18 per cent. lower, whilst of our total exports the proportion going to countries enjoying prosperity and a high standard of life, such as Canada, New Zealand, and the United States shows a marked increase.
104. It is, therefore, for consideration whether Great Britain's industrial structure and methods of production are such as to enable her to supply goods of wanted qualities at competitive prices tc consumers of low purchasing power who form so large a proportion of the world's population. The evidence undoubtedly leads one to the conclusion that we are endeavouring to sell goods of a quality and cost higher than many of the markets of the world are willing or able to take. Great Britain has not been beaten anywhere in the world in high quality or high standard goods. She has been beaten almost entirely in the supply of bulk goods for the great mass of ordinary people. It seems to us that if we are to employ fully our people and factories at home, we must re-organise the policy methods, and conditions under which we work and live, so as to enable us to supply bulk lines of staple goods, as well as quality and luxury goods. To-day the world does not place so high a value on quality, durability, and dependability in manufactured goods as it did in former years. To these altered conditions in most of the world's markets we must adjust our industrial life at home, if we are to hold or increase our export trade.
105. As regards Question (2), the development of the China market must depend very largely on China being equipped with railroads and other facilities for transportation, with light and power plants, and with agricultural and industrial machinery. It is surprising to find that China's principal import is food-in the form of cereals and sugar, both natural products of China-although she is one of the largest agricultural countries of the world. In 1929 imports into China of cereals and sugar were valued at £33 million, equal to 20 per cent. of the value of all imports. Lack of transportation, banditry, and irregular local taxation within China
57
account for this state of affairs. Areas where heavy crops are harvested find it difficult to market their surplus. Foodstuffs are left to rot in productive areas, while millions of people in areas where drought or floods occur, starve and die. The cure of this tragic condition can only be effected by the establishment of security and the development of transportation. Progress on these lines would quickly bring an enlarged demand for consumable goods and raise the standard of life in China. If financial and industrial interests in Great Britain could arrange to assist in equipping China with means to an adequate economic life, the results would be an immediate stimulus to British industry, and the prospect of an increasing market for British goods in future.
CHAPTER VI.
THE IMPORT TRADE.
106. The following table sets out for the years 1913, 1922, 1928 and 1929, the value of total imports into China (in sterling), and the percentage share secured by the principal countries of supply:
Year.
Total Imports
£
1913 1922
80,615,000 182,819,000 1928 176,458,000 1929 167,781,000
Percentage share of total secured by:-
Great
Britain.
United
States.
Germany.
Hong-
kong.
Japan.
17
17
7499
6778
17
18
The above table reveals that
KO OD KO LO
29
2225
if if if 00
France,
British
India.
21
1
25 19
24
0.5
26
¡
17
25
1.5
(a) Great Britain's percentage share is now little more than half of that which she secured in 1913, and that there has been a steady decline during the post war period;
(b) The percentage share of the United States which is three times that of 1913, is now double the British share and has held steady since 1922. Raw cotton, timber and oils repre- sent half the value of imports from the United States, and are items which Great Britain cannot supply.
(c) Germany has already regained her pre-war percentage share.
(d) Hongkong to-day, as a source of supply, is of far less relative importance than in 1913.
247
No comments yet.
Private notes are available after approval.