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.
