Many ask us about the United States’ current economic situation and how it is affecting and how it is going to affect business with China.  Even though spending is going to drop in the U.S., that does not necessarily mean that Chinese manufacturing is going to be affected negatively.  Many that we have spoken with believe that it is actually going to increase the need of Chinese trade and manufacturing because of the lower prices.  There are still many companies in the U.S. that have not taken there business overseas.  This may be the time that the lower manufacturing and trade costs that the Chinese system presents may be of enough worth to take the leap across the Pacific Ocean.  

Something else you may consider is that U.S. exports to China have recently hit an all-time high.  In 2007, U.S. exports to China hit $65 billion ($85 billion if you include Hong Kong).  From the year 2000, exports to China have increased by over 300%.  During the same period of time, U.S. exports to the rest of the world have only increased by 50%.  Currently, the United States only exports more to its closest neighbors, Canada and Mexico.  

Only time will tell, but Chinese trade with the U.S. is probably not looking to slow up any time soon.

This entry was posted on Wednesday, October 15th, 2008 at 12:53 pm and is filed under China Trade. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.