China Sales Dog Blog

U.S. exports to China boom, despite trade tensions - The Washington Post

The surge is happening without much change in Chinese government policies and without much specific help from the Obama administration, which has a stated goal of doubling all U.S. exports globally by 2014. Instead, experts say, the main reason for the increase has been a booming China, where wealthier tastes include an increased appetite for meat — and hence for soybeans used as livestock feed.

via www.washingtonpost.com

Export opportunities to China increasing ... ! Time to get onboard.

China's Top 10 Business Stories In 2011 - Forbes

As the year comes to a close, and we look forward to 2012, I continue the tradition I started last year and offer a brief look at the top stories that shaped China’s business and economic climate in 2011:

via www.forbes.com

Good summary of what was important in China in 2011 and still is as we move into 2012.

Enjoy!

The National Export Initiative: Why NOW is the Time for American SMEs to Export to China

“So tonight, we set a new goal: We will double our exports over the next five years, an increase that will support two million jobs in America.”

-President Obama

 

    The President’s ambitious plan to double America’s exports over the next five years, which he announced at the 2010 State of the Union, makes this the perfect time for SMEs to start to export. The details of this plan were laid out in the National Export Initiative (NEI), and an Export Promotion Cabinet was established to spearhead the effort. The NEI pools resources and leadership from the Small Business Administration, the Export-Import Bank, the U.S. Trade Representative, and from the Commerce, State, and Agriculture departments.

     Priority number one of the NEI is to increase government assistance to SMEs looking to export.

Time for China to pay the piper? Maybe ...

I've seen it coming for some time now. China's increasing PDC or "public display of confidence" that's been building for over ten years could come back to haunt it. According to China, China is always faster, smarter, "right-er" and better than the rest of the world. Problem is the rest of rest of the world has worked hard to develop and played to a certain set of rules for a long time now, rules that newcomer China seems intent on disrupting.

Chinese usually consider it "clever" (聪明 - tsong ming) to bypass the system to achieve ones ends. But as dumb as the rest of the world seems, the rest of the world may not be that dumb after all. What did George Bush say "fool me once ... uh, shame, shame on you. If you FOOL me you can't get fooled again ... !" Translating for our dear Mr. Bush, we can let infractions slide a few times but we do have our limits. Increasingly it seems it's China against the world, a world that when pushed can become a united and formidable opponent.

Read this WSJ article (link below) discussing an emerging reality for China, one sure to put limits on just how much it can continue, as Obama has been saying, gaming the system.

Live and learn,

Chris

China Might Have Over-Reached Itself

By IRWIN STELZER

China Currency Bill Runs Into GOP Opposition - Bloomberg

Getting China to move on it's currecny policy is like pushing bolders up a rocky hill ... the boulders are pretty much going to do what they want anyway. Now it seems that a currency bill developed in the US Senate also may not be the answer, at least according to some members of the House of Represenatives. Read about opposition to the bill in the following Bloomberg article.

Overview: U.S. Senate legislation that would punish China for an undervalued currency ran into opposition from senators and a roadblock by House Speaker John Boehner, who said the bill was “pretty dangerous.” via Bloomberg.

View full article.

Become enlightened.

Chris

More Visitors Leave U.S. Off Travel Itinerary - WSJ.com

Security measures adopted to vet foreign visitors since 9/11 have had the side effect of discouraging tourism to the U.S., curbing job growth in the hospitality industries, according to executives and Obama administration officials.

via online.wsj.com

Chris writes: Here's an easy boost to the US economy if we just can become a bit less cynical and a little more welcoming (This American finds US Customs & Immigration the most unwelcoming of any country I have been too). Think of the many ways in which a tourist to the US spends money - plane tickets, ground transportation, hotels, meals, amusement parks, gifts, personal items to take home, etc., etc., etc. The infusion of cash from those millions of tourists will literally make the lives of millions of Americans at least a little better. Find a more efficient way to screen out the few ill-intentioned and let the majority good have some fun in America. China alone will have around a million wanna-be US visitors this year.

Simple case for maintaining manufacturing capability in USA

I argue it behooves the US Government and US companies to maintain some level of manufacturing in in the USA in as many industries as possible ...

For the Government, it is about national security. Our highly complex national infrastructure and defense machine increasingly depend on materials and components from other countries, countries that are not always friendly. For just one example, think of the monopoly China has established around rare

A win for US wind power companies seeking to sell in China

It seems US trade negotiators can put another notch on their belts. Breaking news has it that China agreed to end subsidies in the form of technology grants to local wind power products producers. The grants, all part of China's internationally controversial "indigenous innovation" campaign, ranged from $6 to $22 million dollars. US negotiators are hoping this shift by the Chinese will help ensure fairness for American clean technology companies who happen to pose the biggest competitive threat to the Chinese.

This removal of subsidies, the increasing value of the Yuan and huge need for clean energy in China suggest now is a good time for American windpower product companies to begin focusing on selling to China.

View the whole story "China agrees to end domestic wind power subsidies" here on US Today.

Edit on 6/8, see this supplemental article "China turning to renewable energy to meet growing power needs".

Have a good day!

Chris

 

© 2003-2011 China Sage Consultants (上海) Co., Ltd. All rights reserved.

"US exports hit record level in March 2011", or "Is China faltering"?

As a "China expert" its imperative that I keep up with China news to stay up with trends and all. A couple of days ago I came across this gem of an article highlighting that March 2011 was the US' single biggest month for exports ever, $173 billion, and US companies are returning home from China! Great for Americans, but why is it happening? It has to do with the changing economics associated with US companies manufacturing in places like China, or "mainly China", to serve the US market. Rising Chinese labor costs, the appreciating Chinese Yuan, major increases in US productivity (i.e. reduced labor component) and investment incentives in hungry US states are all contributors to this trend. It's a short, easy and fact-filled read.

See full article U.S. manufacturers are leaving China behind.

Enjoy!

Chris

 

© 2003-2011 China Sage Consultants (上海) Co., Ltd. All rights reserved.

Doesn't Add Up: US export price vs. Chinese end-user price

Any company selling in China knows that "price" is always an issue; even when it's not really an issue, it's still an issue! That's just cultural and, hey, why not. Even the worst negotiation training courses in the west teach "always flinch at the seller's price". What we learn in school, the Chinese do very naturally.  The main point is price is an issue in China and so why do many US exporters overlook the fact their export price and Chinese end-user price are two very different things in China.