Shanghai Becomes Top Sourcing Center in China

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SHANGHAI, Jun. 4 – Shanghai is expected to see a 390 percent increase in procurement value from multinational firms in 2010 as the global economy re-balances following the financial crisis, a report from Global Sources said on Tuesday.

The U.S.-based media company said in a report that multinational companies such as Wal-Mart, Honeywell, and Dell will spend US$50 billion on procurement in Shanghai this year.

“The booming demand of Chinese consumers hasn’t changed despite the uncertainties in the global economy,” Tommy Wong, general manager of Global Sources Exhibitions, said at a press conference for the China Sourcing Fair: Electronics.

“Shanghai has become China’s most vibrant sourcing hub thanks to its location and economy,” Wong added.

According to the China Retail Report, China’s retail market value is expected to grow 79 percent annually from 2009 to RMB20.8 trillion in 2014, during which the value of the electronics market will increase 55.8 percent to RMB1.38 trillion.

Asian consumer electronic markets, led by China, are expected to account for 36 percent of the global market next year, an increase from the current 34 percent.

Computer giant Dell plans to increase procurement in China from US$23 billion in 2008 to US$25 billion this year. More than 3,000 Chinese retailers, including the Bailian Group, Trust-Mart and Wangfujing Store, have set up procurement offices in Shanghai.