Asia in recent years has experienced a major surge in the demand for its manufactured goods from the world's largest markets in the United States and Japan. One sector which has benefited from this increase in demand is furniture. For example, in 1990 the United States, the largest market for imported furniture, purchased about 1.7 billion dollars worth of furniture from Asian nations. In the year 2000 this number had grown to over 7 billion and by 2004 had nearly doubled over these four years. Breaking this trend down by nation, China and the Association of South East Asian Nations, "ASEAN", (of which Indonesia, Malaysia, the Philippines are major members) were responsible for the most gains, while demand held steady for imports from Korea and Japan, and Taiwan actually experiencing a decline in demand for its furniture exports. It is here to that we can clearly begin to see the reasons for this disparity. 
More developed nations like Japan, Korea, and Taiwan experienced appreciation in their currencies which have brought with them attendant rises in labor costs. China remains an exception to this; while it is also a highly developed nation it has been careful to control the appreciation of its currency.Japan, Taiwan, and Korea also lack large domestic supplies of the raw materials necessary for the manufacture of furniture, while China and ASEAN are again the exceptions. These resources include such materials as timber, metal (steel and aluminum), and organic fibers and fabrics. With China and ASEAN already accounting for 92% of all Asian furniture imports in the United States by 2004, it is easy to see that the dual advantage of inexpensive labor and plentiful local supply of raw materials are keys to their success as compared with other exporters in the region.In fact, the difference in cost of production between China and the ASEAN and its other regional competitors is so pronounced that Japan has actually become a major importer of Asian manufactured furniture. Moreover, Taiwan has had to entertain the idea of leaving the market of manufactured wooden furniture and is begining to produce furniture containing more metal. China however also possesses large local supplies of inexpensive steel which should provide a challenge to potential future Taiwanese competitors.It may be that the only risks to Chinese and ASEAN dominance as suppliers for the demand for Asian furniture in the United States may be the United States itself. In recent years the domestic producers of many manufactured goods in both Europe and the United States have reacted hostilely to competition from Asia in general and China in particular.
Unable to compete, the domestic industries in these major import markets have formed powerful political lobbies with the aim of increasing import duties on a wide variety of Asian and Chinese goods. As recently as November of 2005, the powerful American textile lobby managed to win more protections though the Committee for the Implementation of Textile Agreements, "CITA", an organization with unilateral authority to pass such tariffs.
More developed nations like Japan, Korea, and Taiwan experienced appreciation in their currencies which have brought with them attendant rises in labor costs. China remains an exception to this; while it is also a highly developed nation it has been careful to control the appreciation of its currency.Japan, Taiwan, and Korea also lack large domestic supplies of the raw materials necessary for the manufacture of furniture, while China and ASEAN are again the exceptions. These resources include such materials as timber, metal (steel and aluminum), and organic fibers and fabrics. With China and ASEAN already accounting for 92% of all Asian furniture imports in the United States by 2004, it is easy to see that the dual advantage of inexpensive labor and plentiful local supply of raw materials are keys to their success as compared with other exporters in the region.In fact, the difference in cost of production between China and the ASEAN and its other regional competitors is so pronounced that Japan has actually become a major importer of Asian manufactured furniture. Moreover, Taiwan has had to entertain the idea of leaving the market of manufactured wooden furniture and is begining to produce furniture containing more metal. China however also possesses large local supplies of inexpensive steel which should provide a challenge to potential future Taiwanese competitors.It may be that the only risks to Chinese and ASEAN dominance as suppliers for the demand for Asian furniture in the United States may be the United States itself. In recent years the domestic producers of many manufactured goods in both Europe and the United States have reacted hostilely to competition from Asia in general and China in particular.
Unable to compete, the domestic industries in these major import markets have formed powerful political lobbies with the aim of increasing import duties on a wide variety of Asian and Chinese goods. As recently as November of 2005, the powerful American textile lobby managed to win more protections though the Committee for the Implementation of Textile Agreements, "CITA", an organization with unilateral authority to pass such tariffs.
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