China’s trade surplus and why it matters to you
By SwizStick • Jul 17th, 2007 • Category: ChinaToo much good stuff to excerpt from this excellent post over at All Roads Lead to China, but I’ll leave you with this excellent advice for Western businesses in China:
* If are exporting products from China and were once basing your export costs on 7.61, use 7.5 now rather then 7.5t to see how your margins hold up, then run at 7.2 to see how your margins hold up, and then throw in a 5% reduction in VAT… what do you get?
* If you are a manufacturing firm looking to enter China, now is the time to sell high value technology (cleantech is HOT right now) into China. You will have the full blessings of both governments (assuming the product is not dual role), and there is currently a critical gap
* If you are a manufacturer exporting products made in China to U.S. or E.U. markets, I have two words for you. QUALITY CONTROL. The next 18 months will prove that those who are able to sell quality will not be affected by the recent scandals, but those who have failures of any kind or on any scale will experience brand depreciation on a big scale.
There’s plenty more, head on over and read the whole thing.
Stumble it!
Related Posts:
SwizStick is Co-Contributor
Email this author | All posts by SwizStick
© 2008