China Works blog: China manufacturing news, analysis and insights

Opinion has been divided on the deafening decibels generated by the vuvuzela horns, which have been an inarguable part of the 2010 World Cup. The trumpet-like horns have also sold well around the world, as football fans try to recreate the atmosphere of South African stadiums at home and in bars.

But who would have guessed that an instrument promoted as distinctively South African was mass produced in China? According to Chinese state media “up to 90 percent of the vuvuzelas in South Africa were made in China.”

One of the manufacturing companies quoted in the report, Zhejiang-based Jiying Plastic Products, said it had sold more than one million vuvuzela horns since April. The report added that “nearly all of the vuvuzelas blown by World Cup fans come from five factories in Guangdong province and Zhejiang.”

The horns are exported “at prices ranging from RMB0.6-2.5,” state media writes, and are sold for between RMB18-53. The good news for manufacturers is that the vuvuzela craze may endure beyond the World Cup – London Mayor Boris Johnson has hinted that the buzzing bee sounding horn might be welcomed at the London Olympics in 2012.

Despite a positive spin by Chinese state media, China’s manufacturing output growth slowed in May, raising further concerns of overheating in key economic metrics.

Asian stock markets reacted negatively to the news on fears that sluggish global demand for Chinese manufactured products in May maybe indicative of a further slowdown in the months ahead.

The official China Federation of Logistics and Purchasing managers index dropped to 53.9, from 55.7. While this still represents growth (for the 12th consecutive month), the rate of growth was below many analysts’ predictions. The official export orders sub-index fell to 53.8 in May, from April’s 54.5. Differing slightly from the official government statistics, the HSBC China Manufacturing Purchasing Managers Index dropped considerably from 55.2 in April to 52.7 in May.

Chinese media said the slower rate of manufacturing output growth showed “that the government’s tightening measures, including a crackdown on the property market, are starting to impact manufacturing activity.”