Recently Obama administration imposed import tariff on steel pipes and tires from China. The announcement was widely criticized by the Chinese as well as around the world as expression of anti-free-trade policy. Be it as it may the move reflects US government’s determination to safeguard further loss of jobs and to make US products more competitive.
Is it likely that US will revert to protectionism and Chinese imports will become less desirable? That is unlikely to happen anytime soon. Free trade is here to stay.
Despite low US dollar, which makes cost of American products more affordable in global marketplace, import export business will continue to be the driving force of world commerce. Would-be importers will continue to look to China as top supplier of a wide spectrum of products. Should you import from China?
Although China is best suited to import from by the medium size business almost any product imaginable can be found in China. Due to number of Chinese exports that ended in fiasco in recent years, from toys painted with paint containing lead to pet food ingredients laced with toxic melamine and toothpaste tainted with traces of arsenic, Chinese government has since installed more stringent product safety guidelines and placed general higher requirements on export quality control guidelines.
The new regulations and general slump in exports over the last 12 months forced thousands of smaller manufacturers out of business in China, namely in Guangzhou, where large number of Chinese suppliers continue to be located. Would-be importer should make at least one trip to one of Guangzhou’s many trade shows to find a prospective Chinese export supplier.
Although low value of the dollar is an issue for the importer, Chinese government continues to keep Yuan, the Chinese currency, undervalued, which renders cost of Chinese products very affordable for importing. Aside the attractive prices, many Chinese products are indeed exquisitely made and enjoy good reputation all over the world.
Do keep in mind that should the Chinese government give in to the US pressure and allow Yuan to trade at its face value, the move can make price of Chinese products considerably more expensive overnight. As of today, however, there are no signs that will happen anytime soon.