Following a series of tighter consumer protection laws, makers are emphasizing product safety while contending with the high cost of compliance.

Faced with stricter safety regulations in key export destinations, companies in China are allocating more resources to product testing and emphasizing high-quality materials despite the pressure these are putting on manufacturing outlay.

For most suppliers, adopting complicated and far-reaching directives is not the main challenge, but the high expense of compliance is.

Many of the new safety standards require makers to conduct more tests on a greater number of chemical substances. As a result, certification fees for some products have risen by as much as 50 percent, and even doubled in a few cases. CPSIA evaluation for toys, for example, can cost up to $1,000 per model depending on the complexity of the design.

The average toy company now spends $60,000 to $100,000 on examination fees every year. One of the biggest toy makers in China pays more than $2.9 million annually on testing, much higher than the yearly revenue of small suppliers.

Lamp specialist Heshan Mingkeda Industries Co. Ltd spends about $3,000 for SAA certification alone, which takes one or two months to acquire, according to the company’s sales manager Mini Yip.

In many instances, fulfilling safety requirements involves replacing infringing materials with compliant substitutes.

Suppliers of food-grade products, for instance, have already stopped using BPA, an organic compound found in many plastics. In a range of consumer goods, further modifications include the shift from PVC to POE, and from PC to phthalate-free PES, glass and nontoxic silicone.

Battery makers are striving to develop or source safer anode and cathode materials. Some have begun to replace conventional lithium cobalt oxide formulation with lithium iron phosphate, an alternative with lower environmental impact. Other efforts are aimed at improving protection against overcharging, discharging and heating.

But in most instances, “safe” alternatives are costlier than the originals. 3P PVC for instance, is 30 percent more expensive than regular PVC but is 30 percent cheaper than 6P.

Similarly, A5-grade melamine goes for $2,200 per ton, three times as much as the same volume of the A1-grade variant at about $735.

In some cases, imported materials, which invariably cost more, are favored over domestic equivalents. Imported PP, for instance, is 20 to 30 percent higher than domestic versions, at $1,800 to $2,100 per ton. Overseas-sourced organic fabrics, likewise, are 20 to 30 percent more expensive than local variants.

Despite the high outlay, some companies prefer to source abroad for consistent quality. Foshan Geuwa Electric Appliance Co. Ltd sources 80 percent of materials and components for its blenders and juicers overseas, while the rest are purchased locally.

Besides higher raw material expenses, makers have to contend with increases in indirect costs, particularly those related with monitoring the supply chain to ensure that all manufacturing inputs meet specifications.

According to Tim Corrigan, president and CEO of the Quality Assurance Institute, “The root cause of the problem (of product quality) is control of the raw material, application contaminations and subfactories. To fix this requires an overhaul at many factories. The solution calls for significant transparency, diligence and dedication.”

Generally, material vendors are able to offer third-party certification. But for those that cannot do so, companies need to send their own QC staff to supervise the production at the material suppliers’ factories.

More exporters are now limiting their sourcing to suppliers that can provide certified inputs. Still, collection and documentation of every component utilized requires time, effort and money.

In addition to testing and materials quality, manufacturers are also enhancing their in-house QC facilities.

Lai On Products (Industrial) Ltd, a Hong Kong-owned maker of crayons, modeling clay and paint has set up a microbiological laboratory at its factory in Shenzhen, Guangdong province. Certified by the China National Accreditation Service for Conformity Assessment, the lab is comparable to a chemical-testing facility. The supplier also sends its products to third-party agencies to ensure compliance with ASTM D-4236 and F963, Toxicological Risk Assessment, EN 71, CPSIA, California Proposition 65 and REACH requirements.

Some baby stroller factories are now equipped with wheel performance, dynamic durability and drop-testing facilities. At the same time, many stuffed toys and children’s garments makers are purchasing more needle detectors.

Any measure to comply with safety regulations undoubtedly adds to the cost of production. Suppliers estimate material and certification expenses have risen about 10 percent in recent months. Many companies try to absorb the additional expenditure, but this is not always feasible.

While investment in facilities can be recovered in the long term, the same cannot be said about testing fees. When order quantities are low, as in the current environment, makers are often unable to recover money spent on certification of specific models. Shorter product life cycles due to fast-changing customer preferences also give manufacturers a narrower time frame to recoup compliance outlay.

Some suppliers try to negotiate bigger orders or ask buyers to shoulder the cost for certification. But clients are averse to both options in view of the current economic conditions.

Typically, tier 1 manufacturers are able to comply with regulations more seamlessly due mainly to their stable financial resources.

“Enterprises that cater to major OEM customers likewise have the easiest time adjusting to the new rules as they have better access to information,” said Cody Wang, chemical testing deputy general manager at Intertek. “They are usually able to make the necessary changes months in advance of enforcement deadlines.”

But for small and midsize factories that have less capital to invest in equipment and prohibitive testing fees, conformance can be a daunting task.

Testers can also be partners

The professional testing industry is booming amid the rising safety trend. With the increased need for product evaluation, the past few years have seen an influx and expansion of third-party laboratories in China, including SGS, TUV, BV, Morlab and Pony Test. These organizations also provide free training on the latest regulations, and inform companies on which merchandise needs testing and how.

Regulatory agencies in the US and the EU have likewise been active in helping suppliers get up to speed.

Workshops on the new EU Toy Safety Directive have been organized, with the support of the EU-China Trade Project and the Directorate-General for Enterprise and Industry of the European Commission.

In October 2009, the third CPSC-AQSIQ Summit was held in Wuxi, Jiangsu province. With a theme of “promoting best practices by Chinese manufacturers and US importers to maximize product safety”, the summit was attended by CPSC chair Inez Tenenbaum.

In her keynote address, Tenenbaum reported that in fiscal year 2009, toy recalls went down to 40 from more than 80 in the preceding period. The information exchange between the CPSC and AQSIC about recalls of China-made goods was emphasized, as well as the need for frequent training sessions.

The AQSIQ has been educating China toy makers about safety requirements in the US and on strengthening quality controls. The CPSC has arranged to set up an office at the US embassy in Beijing to help promote compliance with US standards among local suppliers.

Local governments and trade organizations are also vigorously pushing companies to bolster the image of “made in China” products.

At the Canton Fair last fall, the Ministry of Commerce distributed export quality and safety manual to exhibitors.

Organizations such as the China Council for the Promotion of International Trade have been sponsoring seminars for business owners and local government officials on product safety in Southern China.

Regulations getting tougher

The safety bar that China suppliers must hurdle is getting higher by the year as new international and domestic standards are put into place.

In December 2009, the European Chemicals Agency announced the addition of 15 chemicals to its candidate list of substances of very high concern (SVHC) under REACH. Among the inclusions were diisobutyl phthalate, a commonly used plasticizer, and lead chromate, a coloring agent. If you have any concerns concerning where by and how to use Chinese companies, you can call us at the web page.

REACH has wide-ranging impact in the EU as it requires disclosure of information on hazardous substances contained in every product. The directive is on top of specific regulations such as RoHS for electronic goods, EN 71 for toys, and Regulation 1905/2004/EC for materials that come in contact with food.

For toy makers, the CPSIA/HR4040 in the US and the EU’s New Toy Safety Directive or 2009/48/EC amend existing rules substantially and impose greater restrictions on suspicious chemicals. The latter regulation limits 19 metallic elements. It also bans 55 fragrant substances and warns against a further 11 types.

Other baby and children’s products and toys must pass the standards for EN 71, CE, WEEE and EMC in the EU, ASTM-F963, CPSIA, FDA and UL in the US, AS/NZS/ISO 8124 in Australia and New Zealand, and ST2002 in Japan.

Following the US and EU’s lead, Japan, Australia and even Malaysia are modifying their existing toy safety regulations, particularly on flammability and the use of phthalates and lead.

Lithium battery exporters have to comply with UL1642 for cells and UL2054 or FCC for battery packs in addition to EMC and RoHS. Designs shipped by air are also obligated to undergo UN38.3 testing. In markets where FCC, UL and RoHS approval are not necessary, passing the UN38.3 is sufficient.

For products that come in contact with food, companies have to comply with assorted standards such as UL, CB, CE, GS, ETL, CCC, FDA and LFGB. Most EU countries recognize Germany’s LFGB because of its stricter requirements.

Aside from international regulations, suppliers have to follow domestic guidelines for a number of goods.

Garment trimming makers, for example, need to comply with three sets of requirements for cords and drawstrings to be used in children’s clothing. Issued by the General Administration of Quality Supervision, Inspection and Quarantine, and Standardization Administration, the GB/T 22702-2008, 22704-2008 and 22705-2008 are based on US’ ASTM F 1816-97(2004), the UK’s BS 7907:1997 and EN 14682:2007, respectively.

In addition, some existing national standards for trimmings have been revised and now have provisions that monitor and prescribe allowable levels for harmful substances that are even lower than European regulations. The GB/T 17592, for example, keeps azo content at 20mg/kg whereas it is 30mg/kg in the EU’s EN 14362.

Likewise, the China government issued a new standard for melamine-formaldehyde products used as food containers and packaging materials. This comes after several foreign markets banned low-end models due to potential chemical leaching.

The regulation seeks to ensure safety by prohibiting the use of urea formaldehyde resin as the main material. A1 and A3-grade melamine dinnerware pieces, which contain 70 to 90 percent of this substance, tend to melt at high temperatures and may cause a health hazard.

To ensure compliance with the safety code, the government has required suppliers to obtain a production license from the General Administration of Quality Supervision, Inspection & Quarantine.

China trading is arguably one of the most critical business relationships in the worldwide market place today. Worldwide trading with China is one of the secrets which fuels financial growth within many nations.

The domestic prosperity of numerous nations is specifically tied to their capability to fulfill buyer demand for not only local goods, supplies and services, but foreign ones also. We see that China trading is ready to keep up with this demand. If you have any inquiries relating to in which and how to use China One, you can make contact with us at the web page.

In truth, during the twenty-first century, we observe the relevance of China trading with everyone else world. China’s warehouses are teeming with commerce. They are striving to constantly manufacture their products with ample abundance to meet production quotas. They are striving to consistently fulfill the orders they acquire from merchants overseas.

China’s commitment in its indigenous manufacturing businesses, no doubt, has come a long way to help conquer a number of self-imposed limitations. It has the infrastructure in place to broker investing in between purchasers and sellers. This has contributed to China’s astonishing rise to a leadership role in the importing and exporting business.

The planet has become increasingly dependent upon China. In reality, it could be mentioned that the high quality way of life prevalent across many of the nations in the modernized world is due to the direct impact of China trading associations.

Many from among the luxurious goods which are taken for granted in the modern day world had been created in China. Every thing from your silverware, to your toys, to your electronics, to your materials and textiles, to furniture, and nearly any item made of plastics, has its origins in the factories and workshops of China.

China trading associations are what make it achievable for us to benefit from the standard of living that we have today. We’re living during a time when the circumstances of the global financial system, even more than before, need firms to proactively embrace globalization, as opposed to resolving to run away from it.

If China trading were to suddenly end, the entire planet would suffer. Thankfully, in spite of the current financial recession that we’re going through these days, there is no shortage of new contracts getting negotiated every day among wholesale merchants. Yet, although it could be mentioned that people are investing much less money these days, there isn’t any decline in the trend of consumers needing to buy common everyday household commodities.

So right now is as excellent opportunity as any to jump in on a sliver of the action. There’s cash to be made within the international import / export business. China trading is expanding, and so there’s plenty of room for novice entrepreneurs who wish to get into the game and bring in respectable income.

It’s a well-known fact that more and more people are ordering goods from China. High levels of production and low wages mean there are cost benefits to be had for most companies in most industries. However, there are positives and negatives to most things in business, and ordering from China is no exception.

To ensure a successful and secure order process there are several things to consider. Whether ordering as a business or as an end-user, the following steps and considerations will help you avoid the mistakes others have made before you.

Establishing contacts and building relationships

As with everything in life establishing a relationship and trust with someone can be the key to success.

Trust your supplier – while you may be able to find cheaper prices from an unknown manufacturer there are risks and scams that can be avoided by having a source you know well.
If you have any kind of questions relating to where and how you can utilize Chinese companies, you can call us at the web site.

It’s all about ‘mutual trust’ – Working with the same factory regularly will result in a good understanding of each others wants and needs.

Inevitably there can be frustrations and disappointments when having any bespoke product manufactured. Often, the product your customer receives may not be exactly what they expected. Producing goods doesn’t always go smoothly and frustrations can be heightened when you’re not able to pop into the factory and see what’s going on. Having the right source in China and building a relationship with them can dramatically reduce the risks involved. In fact it’s vital.

Communication Breakdown

There are several factors here that may seem simple and obvious but can often be over looked.

Time Zone – China has a time zone of GMT +8 hours

Contact with China during UK working hours can be very limited. This can be a problem and it might seem unprofessional if you can’t answer your client’s questions until the following day.

Language Barrier

English is a very colloquial language and it’s easy to confuse suppliers by not being clear enough with your instructions. If you have to wait until the following day to get answers to your questions, make sure you get all the information right first time around – otherwise you’ll face further delays.

Production

Understand the manufacturing process

Just because you’re not making the product doesn’t mean you shouldn’t know what’s going on. If it’s metal, is it stamped? Is it moulded? Is it laser cut? Good knowledge of the production processes being used could help you get things right first time.

Lead Times and Turnaround

It can often be difficult to confirm exact lead times and dispatch dates from Chinese suppliers. Anticipate this. If you can’t provide a reliable service it doesn’t matter how cheaply you source goods, your customers won’t come back.

Tax

Tax and import duty can dramatically increase the cost of your order. Tax varies greatly depending on the product and material. HM Revenue and Customs website provides great help and guidelines on this.

Things to consider

Business will always be business and making a profit is a vital part of that. However it’s surely important to take into account questions of morality and sustainability of business ventures. The use of child labour, poor working conditions and bad environmental practices can be a fact of life in China. It is your responsibility to check it’s not happening in your factory. Global warming is happening and having a global economy is certainly not helping. Perhaps schemes such as the ‘Planet Alliance of Businesses’ will help to redress the balance.

For now though, it’s worth remembering that doing business with China can provide an opportunity for small and medium-sized businesses to compete with the buying power of business giants. This in itself must surely be of benefit to our home economy.

China trading is arguably one of the most critical business relationships in the worldwide market place today. Worldwide trading with China is one of the secrets which fuels financial growth within many nations.

The domestic prosperity of numerous nations is specifically tied to their capability to fulfill buyer demand for not only local goods, supplies and services, but foreign ones also. We see that China trading is ready to keep up with this demand.

In truth, during the twenty-first century, we observe the relevance of China trading with everyone else world. China’s warehouses are teeming with commerce. They are striving to constantly manufacture their products with ample abundance to meet production quotas. They are striving to consistently fulfill the orders they acquire from merchants overseas.

China’s commitment in its indigenous manufacturing businesses, no doubt, has come a long way to help conquer a number of self-imposed limitations. It has the infrastructure in place to broker investing in between purchasers and sellers. This has contributed to China’s astonishing rise to a leadership role in the importing and exporting business.

The planet has become increasingly dependent upon China. In reality, it could be mentioned that the high quality way of life prevalent across many of the nations in the modernized world is due to the direct impact of China trading associations.

Many from among the luxurious goods which are taken for granted in the modern day world had been created in China. Every thing from your silverware, to your toys, to your electronics, to your materials and textiles, to furniture, and nearly any item made of plastics, has its origins in the factories and workshops of China.

China trading associations are what make it achievable for us to benefit from the standard of living that we have today. We’re living during a time when the circumstances of the global financial system, even more than before, need firms to proactively embrace globalization, as opposed to resolving to run away from it.

If China trading were to suddenly end, the entire planet would suffer. Thankfully, in spite of the current financial recession that we’re going through these days, there is no shortage of new contracts getting negotiated every day among wholesale merchants. Yet, although it could be mentioned that people are investing much less money these days, there isn’t any decline in the trend of consumers needing to buy common everyday household commodities.

So right now is as excellent opportunity as any to jump in on a sliver of the action.
If you loved this article and also you would like to acquire more info about Made in China i implore you to visit our web-site. There’s cash to be made within the international import / export business. China trading is expanding, and so there’s plenty of room for novice entrepreneurs who wish to get into the game and bring in respectable income.

It’s a well-known fact that more and more people are ordering goods from China. High levels of production and low wages mean there are cost benefits to be had for most companies in most industries. However, there are positives and negatives to most things in business, and ordering from China is no exception.

To ensure a successful and secure order process there are several things to consider. Whether ordering as a business or as an end-user, the following steps and considerations will help you avoid the mistakes others have made before you.

Establishing contacts and building relationships As with everything in life establishing a relationship and trust with someone can be the key to success. Here is more info regarding shanghai china business stop by our website. Trust your supplier – while you may be able to find cheaper prices from an unknown manufacturer there are risks and scams that can be avoided by having a source you know well.
It’s all about ‘mutual trust’ – Working with the same factory regularly will result in a good understanding of each others wants and needs.

Inevitably there can be frustrations and disappointments when having any bespoke product manufactured. Often, the product your customer receives may not be exactly what they expected. Producing goods doesn’t always go smoothly and frustrations can be heightened when you’re not able to pop into the factory and see what’s going on. Having the right source in China and building a relationship with them can dramatically reduce the risks involved. In fact it’s vital.

Communication Breakdown

There are several factors here that may seem simple and obvious but can often be over looked.

Time Zone – China has a time zone of GMT +8 hours

Contact with China during UK working hours can be very limited. This can be a problem and it might seem unprofessional if you can’t answer your client’s questions until the following day.

Language Barrier

English is a very colloquial language and it’s easy to confuse suppliers by not being clear enough with your instructions. If you have to wait until the following day to get answers to your questions, make sure you get all the information right first time around – otherwise you’ll face further delays.

ProductionUnderstand the manufacturing process Just because you’re not making the product d oesn’t mean you shouldn’t know what’s going on. If it’s metal, is it stamped? Is it moulded? Is it laser cut? Good knowledge of the production processes being used could help you get things right first time.

Lead Times and Turnaround

It can often be difficult to confirm exact lead times and dispatch dates from Chinese suppliers. Anticipate this. If you can’t provide a reliable service it doesn’t matter how cheaply you source goods, your customers won’t come back.

Tax

Tax and import duty can dramatically increase the cost of your order. Tax varies greatly depending on the product and material. HM Revenue and Customs website provides great help and guidelines on this.

Things to consider

Business will always be business and making a profit is a vital part of that. However it’s surely important to take into account questions of morality and sustainability of business ventures. The use of child labour, poor working conditions and bad environmental practices can be a fact of life in China. It is your responsibility to check it’s not happening in your factory. Global warming is happening and having a global economy is certainly not helping. Perhaps schemes such as the ‘Planet Alliance of Businesses’ will help to redress the balance.

For now though, it’s worth remembering that doing business with China can provide an opportunity for small and medium-sized businesses to compete with the buying power of business giants. This in itself must surely be of benefit to our home economy.

Many clients asked, “How can we get business from our China trips” Understandably with the travel cost and time involved, their main concerns would be meeting targets and results. Business negotiation is a process. It is important to schedule plenty of ‘getting-to-know-you’ time. There are five things to avoid when visiting China:

Do not schedule too many meetings and rush into the ‘let us make a deal NOW’ mode. Relationship building is important for the Chinese, as well as for you. Take time to find a trusting partner.
Do not speak first at roundtable meetings uninvited, or circulate an agenda unsolicited. Different cultures appreciate different degrees of directness. In China, you are a guest so let others play host.
Do not take it for granted that when the Chinese nod their heads, they mean ‘yes’ or they understand you. Saying ‘no’ in the Chinese culture is deemed as impolite. Check it diplomatically.
Do not see a lack of response in discussions as indifference. The Chinese are more accustomed to maintaining harmony than expressing views. Use a gentle approach to invite feedback. Do not assume what works in your company or country will work elsewhere. If you have any sort of concerns relating to where and the best ways to make use of china company directory, you can call us at the page. It would be a mistake to transfer the so-called western way to a country of different culture without careful planning.

The good new is: you can enhance business relationships in China at no extra cost. Here are the five tips:

Make a concerted effort to know your contacts as individuals, not just business partners. Seeing people in a different light will help you ascertain if you can trust and partner with them long term.
Interact with your trade partners outside business meetings. It is all part of a decision making process. Chinese business people are known for making deals in restaurants and karaoke bars.
Show an interest in the cultural, social and economic development in China. This will give you clues of what your Chinese counterparts believe and why they behave in certain ways.
Be considerate. Collectivism plays a key role in old and modem China. The way you interacted with your contacts would impact on how they would be regarded by their colleagues and company.
If you decided not to partner with a Chinese contact you have known for a while, keep in touch with them occasionally. Given the intricate networks in China, they might open doors for you.

Relation building takes time. It is possible to shorten the journey with these business tips.

An aspiring info-preneur and professional speaker, Joanna Tong provides western and Chinese clients with expert tips and how-to master classes on business performance and international relations. China emerges as the world’s third largest market but developing cross-cultural business relations can be challenging for both sides.

With Joanna’s specialist support programme, western clients learn to navigate the cultural and business barriers and win business in China saving time and headaches. With Joanna’s master classes, businesses in China improve management to international standards attracting foreign investments and partnerships at a faster pace.

Trade shows are indispensable marketing tools in import and export business. More often, people think that attending these shows can be very costly. But the benefits that they deliver outweigh the expenses that attending entails. If you loved this article and you would like to obtain more data pertaining to Made in China kindly stop by our page.
And if you are in the China import trade, it is highly recommended to attend trade fairs particularly those held in China.

There, you will have the opportunity to meet many prospective suppliers, manufacturers, agents, brokers, business partners and of course potential customers. You will also have a sufficient amount of exposure for your business, products and services. Since everybody is attending the trade fair, you will have the opportunity to assess yours and your competitors’ position in the market.

These are just a few of the many advantages that attending trade show provides. Once you’ve decided to go, your next move should be finding out the top shows to attend. As a rule of the thumb, attend those fairs that will be beneficial to your China import business rather then touristy ones for you to buy knick knacks at.

Here is a list of top trade shows in China:

Canton Fair
This is probably the largest and one of the most successful fairs in the world. It’s held annually since 1957 between April and October in Guangzhou, China. This year, the 108th Canton Fair will be held on October 15 to 19 (Phase 1); October 23 to 27 (Phase 2); and October 31 to November 4 (Phase 3). For more information, you may visit its official website at: cantonfair.net

World Expo
The World Expo is widely known as the largest exposition on the globe. It is also the most highly priced exposition in the history of the world trade shows. The World Expo Shanghai China 2010 started in May and will end by October 31. More than 50 international organizations in 190 countries will be present. For more details, you may visit: biztradeshows.com/trade-events/worldexpo-shanghai-china.html

Shanghai International Construction Material & Indoor Decoration Exhibition
This year’s SICMIDE was held from August 17 to 20 at Shanghai New International Expo Center. The event featured building construction materials, cultural and public facilities, homes and office buildings, related equipment, building techniques, tools and software. For more information, you may visit: biztradeshows.com/trade-events/shanghai-construction-decoration.html

China International Furniture Fair (CIFF)
Launched in 1993, CIFF is one of the premier furniture exhibitions on earth. With its 17 years of continuous excellence, this year’s fair will be participated by more than 500 exhibitors from 20 countries. This is designed exclusively to showcase the furniture industry in China.

Tuesday November 8, 2016 marked a new age of American politics. In case you loved this post and you would like to receive more info about china company directory assure visit our web site. Donald Trump shocked the world and became the 45th President of the United States of America. The controversial businessman captivated the American public with his unconventional rhetoric and “in-your-face” campaign style. Throughout his campaign to becoming President he proposed many agendas and ideas on what he thought it would take to “make America great again.” One of his big talking to points during his campaign crusade was that he wanted to put America “first” again. Which means he essentially wants to initiate plans that benefit America first and then worry about the outside world. This was very controversial considering America has always done whatever they could to help other countries. However, Trump and his advisors believe that we as a country might be helping out others and suffering the consequences.

This idea of putting America first goes hand in hand with how he is dealing with international trade, most notably China. Donald Trump has often said that China is responsible for nearly half of our trade deficit and he believes that their government is manipulating their currency. To counter this, Donald Trump has proposed we slap a 45 percent tariff on all Chinese imports. The Trump administration says that this tariff would stem from years of China stealing jobs and manipulating the trade system. Recent studies have put the total job losses in the US associated with the Chinese at 2 million. Most of these jobs are in the manufacturing industry.

Fearing a significant tariff on their imports, China has now threatened to retaliate if these tariffs are in fact imposed. The Chinese government has relayed the message to the US government urging against these “outlandish” tariffs (McDonald). China’s Commerce Minister Zhong Shan stated that the US and China are interdependent and bilateral trade relations would have an impact on the worldwide economy. They are afraid that if things start to escalate a trade war might be imminent (McDonald).

A trade war between the US and China would have significant impact on both economies. First, if trump imposes his tariffs, China’s exports to the United States would fall around 25 percent. This means that China’s annual economic growth would decrease by as much as 1 percent. If China retaliates and imposes a tariff on the US, its economic growth would as much as a quarter percentage point (Reuters). Not to mention the consumers that would ultimately suffer. If Chinese imports get taxed, then companies would be forced to raise their prices, which would then hurt the consumer of said products. Really what this comes down to is the US trying to decrease the trade deficit with China. There are several ideas out there on how to go about this. One idea was that instead of placing a tariff on all Chinese imports, just impose targeted tariffs instead. These tariffs would be put on products that face heavy competition from Chinese imports such as steel, machinery, and auto parts. Another way to decrease the deficit would be enhance service exports to China.

Like any problem, the best to solving one is through discussion. These tensions between the US and Chinese governments are very real and very serious. The two biggest economies in the world are on the brink of a stand-off that could set both economies backwards. Sun Jiwen, spokesman for China’s Ministry of Commerce, believes that these trade tensions will resolve through much-needed dialogue. However, it might take a little more than an open invitation for Trump to join the table of discussion. Trump is playing hardball. He feels that the US has been wronged since China has joined the WTO (World Trade Organization) in 2001 (Reuters). China has said they are willing to sit down with Trump administration to come up with a plan that could benefit both nations. China’s President Xi Jinping has defended free trade on numerous occasions and stated that “no one will emerge as a winner” in an international trade war (Reuters).

These are significant times in our country. The US has always been at the forefront world leadership and it is interesting to see with this new administration how these problems will play out. Every decision has a consequence, good or bad. I hope the Trump administration weighs all of the options before irrationally making a decision. The fate of the United States economy depends on it.

Thanks for joining me!

Good company in a journey makes the way seem shorter. — Izaak Walton