China Strong Growth in the Stone Industry

Access to the WTO and the 2008 Beijing Olympic Games boost the Chinese economy. The stone industry strengthens its world leadership in production and in large exports China's stone industry keeps on growing:according to China Stone Industry Association's figures, the average rate has been of 13% over the last fifteen years. China's membership of the World Trade Organization approved on 10th November last year will lead to an increase in exports, already at record level. Also, the decision to hold the 2008 Olympic games in Beijing brought an enthusiastic wave to China's economic and industrial environment. As it is, the Olympics will lead to an increase in building and construction, with obvious advantages of using marble finishings and stone. Other than its richness in raw materials, China can rely on very competitive labour costs: this went up from 0.34 to 0.44 dollars per hour (with a yearly growth rate of 9.8 % from 1997 to 2000), yet it is 60 times lower than in Europe. Nevertheless, yields are still very far from western average rates: the rate of labour productivity in China is about 150 sqm/man, as opposed to 5,000 sqm in other countries. One example of the dangerous competitiveness of "Made in China" material in the European market is the recent decision of the Bavarian Government to pave Muenchen's second airport terminal with 110,000 sqm of Chinese granite. G306 Chinese Granite was preferred to other local materials since it costs some millions of Marks less and has similar quality standards (resistance to compressive stress and abrasion, water absorbance). While Germany meditates on the chances and challenges of the progressive fall of custom duties, how does Italy plan its strategy against China's competitiveness? It certainly will focus on design and advanced technology, currently in demand in China's markets. This is also the opinion of the Foreign Trade Institute, organizing Italy's official participation to Batimat China Exposition (Shangai, 23-26 April), on building, housing and interior technology, material, and products.

Tag:Stone Industry,China Stone Industry,Chinese granite