China’s export structure has undergone rapid changes from over-reliance on cheap products to high-tech products that can make much more profit, FTChinese.com reported.   In many areas, sales for low-end products have not grown much because this type of Chinese products already have occupied high market share. According to a report released by Deutsche Bank, exports of telecommunications equipment, auto accessories, software and ships have increased 30 to 150 percent respectively. This implies China has entered competition with developed countries in more technology-based fields, stimulating further the politically sensitive issue of trade imbalance.   Arthur Kroeber at Beijing consultant firm Dragonomics commented that China has become a sole exporter in field of machinery and certain industrial products.   Many factors, include rising labour wages and policy’s increased support to high end products, have contributed to the phenomenon.   “Private enterprises have grown much quicker than state enterprises. Many private enterprises have been more flexible and strategic in transforming into producing high-end products to occupy markets with higher market value,” said Chinese economist, Ma Jun, at Deutsche Bank.   Deutsche Bank estimated that China’s export of high-end products would grow 30 to 40 % in the next 3 to 5 years, among which auto accessories and software may have even higher growth.   Apart from lower labour cost, China’s new enterprises enjoy important superiority such as lower cost on land, steel and iron. China does not pressure industries much on environmental risk management that generate higher production cost.   However, Kroeber pointed out that higer export rate for high end products may not benefit Chinese enterprises, since most of them are under foreign enterprises’ control. “Most Mainland enterprises are still sole importers of high tech products,” he added.   Shipbuilding is an industry that pushes reduction of China’s import. China takes advantage of the first liquefied natural gas contracts to ensure such overseas carriers would be built inside China.   Guangzhou Shipyard stated that shipbuilding’s attraction lies with its flexibility in sales management.  Exports amounted to 60 percent of Guangzhou Shipyard’s 2005 sales revenues. The company has sales contract scheduled until 2009.   Since shipbuilding industry provides an industrial platform for China’s ambitious to develop aviation and logistics, it is now considered to be a strategic industry. However, Guangzhou Shipyard said that the company still falls behind Japanese shipyards’ technology and management levels.