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What are the issues facing the future
of international trade with China? Currency exchange has not been a past issue when dealing with China. The Chinese Yuan fluctuates in a narrow band and is effectively pegged at ¥8.27 to the US dollar. There is current pressure on China to float their currency. International pressure is on China, and partial currency float is likely to occur. In the short term, currency revaluation will likely hurt the US economy by increasing the cost of goods purchased. Additional expenses for businesses sourcing goods would be incurred due to the cost of currency contracts. Should the currency float and devalue, companies would gain increased buying power with Chinese manufacturers. The Chinese economy continues to grow at a remarkable pace. Continued growth in China will benefit US companies by providing additional options for manufacturing partners and greater export potential. Major issues are in play with the Chinese economy and must be watched for potential threats:
Can Plitt International guarantee the security of intellectual property when dealing with Chinese firms? How do I know if sourcing from China is right for our company? What products make sense to source from China? How does Plitt International get paid? What is the typical make up of Plitt International's client base? How do the cultural differences affect business relationships between US and Chinese firms? What products does Plitt International specialize in? What is it that Plitt International does that no other company can provide? Is outsourcing particular products from China likely to be a continuing trend? What are the issues facing the future of international trade with China? |
