China has raised its profile in global fruit and vegetable markets. The value of its exports during 2002-04 were more than double the value from a decade earlier. Most of China’s exports are processed fruits and vegetables that do not yet pose a serious challenge to U.S. exports. China’s fresh vegetable sales to Japan and several other Asian markets and its apple exports to Southeast Asia compete directly with U.S. products. The United States has been the largest market for China’s exports of apple juice. China’s export competitiveness arises from low costs, a growing processing industry, and policies that encourage fruit and vegetable production. However, China’s growing domestic market may absorb more of its production. China also faces stiff challenges in improving the quality and safety of products, upgrading marketing and distribution infrastructure, and reducing marketing costs.
