Chinese-American Relations Help Manufacturing and Trade

With the economies of the United States and China having both grown into two of the world’s largest economies, inevitably both nation’s trade will be inextricably linked together.


Because each nation’s economies have both distinct similarities, yet also enough differences, many industries in both countries are becoming strong trade partners that benefit both parties. China has grown into the United States’ second largest trading partner as well as its largest importer and third largest market for exports. Because of its population, rapidly developing economy and reputation as a hub for raw materials, China is also becoming a key market for American exporters, investors and companies.

China Economy Still Strong

After the global financial crisis, China’s economy remained relatively (and surprisingly) unscathed compared to the economies of other nations. Despite slowly down moderately after 2008 and surviving a disastrous Shanghai stock market crash along with the fluctuating price of oil, China has managed to maintain a sable economy – both for its citizens and trading partners also.

U.S. Business Council  was able to glean data from both Chinese and U.S. statistics that reveal that the U.S. is now China’s largest trading partner due in a large part to Chinese manufacturing. Manufacturing in America remains healthy in several respects, in spite of common negative perceptions about the impact on the US economy. Output has remained stable despite declining employment. Though inflation has contributed to a 33% increase in prices from 1995 to 2008, manufactured goods actually saw a 3% drop in prices.

In addition to the stability in prices that stand out as a significant outlier compared to the increases in non-manufactured goods, domestic manufacturing salaries have also increased in real teams since the low cost of Chinese manufactured goods restrict inflation and stretch wages further.

Benefit from Chinese Manufacturing

Countless U.S. companies are benefiting either directly or indirectly from outsourcing their manufacturing to China. Because of China’s vast labor force, factories can produce goods at a lower cost. Mass market products and other detailed product lines, specifically, can significantly reduce manufacturing expenses in order for domestic companies to remain competitive in other markets. In addition, many U.S. business have been able to cater to different international markets with their own exports, manufactured and shipped directly from Chinese factories and ports allowing the business to expand their operations.

With enough knowledge, any company is able to partner with a proven and reliable organization that can help foster relationships with Chinese manufacturers to produce new items in the market. While cost is a significant benefit, speed is another that will help businesses. Startup business, for example, rely on scaling manufacturing quickly. China is the fastest option in the world. Close proximity to global ports and a vast home to natural minerals and raw materials in addition to a huge labor forces means that Chinese manufacturers are able to produce practically any items in mass and quickly.

Overseas Manufacturing Mutually Beneficial

Though admittedly, United States and China relations have been frosty and treated with distrust for many decades, the nature of American-Chinese business relations have never been healthier. Both sides recognize that a positive, growing mutual trade is advantageous for many businesses in both countries making use of each other’s resources. By outreaching to China, American businesses can take advantage of one of the fastest growing economies while Chinese producers and manufacturers benefit from the U.S. need for manufactured items.

If your organization in considering investing in all the benefits Chinese manufacturing can provide, join up with a trusted partner that has the experience and expertise necessary to help make any transition seamless and profitable.

Contact any of our partners and contacts and get started with your own outsourced manufacturing solutions today!


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s