Do you want to import from China? Since most big retailers are now sourcing from China, smaller wholesalers and retailers typically wonder whether they should do the same, but are often put off by the complexities of getting started. Like all businesses processes, the process of importing from China has a lot of steps, each of which has its own complexities. For folks new to importing, these steps can seem overwhelming. But there are real business benefits to learning how to import – building import knowledge and expertise gives you access to a broader range of products at a broader range of prices than your competitors, giving you more product options to compete with.There are several key areas a new buyer needs to learn to import from China. These include identifying suppliers, selecting suppliers, paying suppliers, managing quality control and the logistics getting goods shipped from overseas to your warehouse. While complicated, once you learn how to put the steps together and what to watch out for, importing itself is not that difficult a process.
Importing from China: Getting Started
Case Study: European Union (EU)
The process of framing EU policies focus on its capacity to respond to global challenges. The single market benefits from high-quality and transparent rules that make it possible to benefit from economies of scale. Competition in single market encourages businesses to provide high-quality products. EU does not rely on single mechanism to tackle trade barriers. EU’s multilateral cooperation is strengthened by bilateral Free Trade Agreements with ASEAN, Korea, India, the Andean and Central American countries.
Snapshot: US Wheat Export
US exports more wheat than any other country in the world, with an average of 24% global market share. In the fiscal year 2006, America produced 57 million metric tons of wheat, out of which total US consumption was about 31 MMT and 27.5 MMT was exported. In the year 2007, the global wheat production dropped about 5 percent to 593 million metric tons (MMT), and consumption continuous to exceeded production since last seven years. The wheat trade dropped by 7 percent to 107 million metric tons (MMT) (3,946 million bushels). Canada has recently increased its share to 18 percent and Australian share has dropped to 8 percent.
Snapshot: China’s Economic Growth
The standard of living of Chinese in the years ahead will depend to a very large degree on the economic growth that they are able to maintain.
China is the world’s most populous country. China’s GDP is estimated to have grown at 9.9 percent in 2005. Inflows of foreign direct investment (FDI) into China totaled $86.1 billion in 2005.
China delinked its currency from the U.S. dollar in July 2005, resulting in an initial devaluation of 2.1 percent. Since the devaluation, the Chinese currency has appreciated about 1.4 percent against the U.S. dollar as of mid-July 2006.
US Economy: The Obama Factor
The overall U.S. trade deficit shrank by 5.68 percent in March 2008, falling to $58.21 billion from the adjusted February 2008 level of $61.71 billion. Exports fell by 1.71 percent, to $148.51 billion, for the first time since January 2007. Imports dropped by 2.86 percent, to $206.72 billion. The fall-offs were especially sharp in goods trade – where exports sank by 2.37 percent, to $104.73 billion, and imports declined by 3.36 percent, to $173.34 billion.
The prediction markets forecast a Obama presidency in 2009. The most important and most immediate impact of a potential Obama win would be in the area of foreign policy. The Bush doctrine increased the price of a barrel of crude oil. The troubled U.S. relationship with oil-producing nations Venezuela, Russia and Iran in particular added atleast $20-$30 premium in the per barrel oil price. Lower oil prices and the consequent moderate increase in energy demand domestically, could help reverse another long-term trend: the weaker dollar. U.S. energy imports are running 30-40% of total imports. If the U.S. imports less oil or pays less for the oil that it does import, the trade deficit will improve, increasing the demand for dollars.
Export Import News- Re-export rule change proposed - Viet Name News May 28, 2012
- Congress votes to reauthorize Export-Import Bank - Yahoo Finance May 27, 2012
- Import substitution - a key Sri Lankan economic goal - MSN India May 26, 2012
- EU Files WTO Complaint Against Argentina On Import Controls - FOXBusiness May 25, 2012
- Import Export Center to Celebrate World Trade Month at International Business Networking Event in NY - Newswiretoday.com May 22, 2012
- Do the Export-Import Bank's Policies Potentially Distort the Market? - Minyanville May 18, 2012
- Margaret Harding - Reauthorize Export Import Bank to create jobs in North Carolina - Star News Online May 18, 2012