Executive Briefings

Hey, China Hasn't Gone Away. You Should Still Be There.

Don't give up on China, despite its short-term political and economic difficulties. So says Ted Fishman, author of "China, Inc., How the Rise of the Next Superpower Challenges America and the World" and former Chicago Mercantile Exchange trader.

"China is feeling rocky right now" because of economic and political developments that pose risk for businesses both inside and outside China, Fishman said. For the seventh quarter in a row, China's gross domestic product is down, and in the third quarter it posted the lowest growth in 13 years (7.4 percent), largely because of state investments in building airports and apartment housing. Further, China's currency, the yuan, is up 40 percent, and wages are inflating at a rate of 12 percent, putting a strain on the economy, according to the author.

State-run companies are also reasserting themselves in Chinese markets, and that's causing some companies in the United States and elsewhere to retreat or ratchet down investment.

Despite all the short-term negatives he sees for U.S. companies seeking to do business in China, Fishman is clearly bullish on the country long-term "because of the big trends, because of the demographic story, not market reforms."

Read Full Article


Keywords: international trade, value chain, supply chain management, retail supply chain, supply chain planning, investing in China, China continues to be attractive to business

"China is feeling rocky right now" because of economic and political developments that pose risk for businesses both inside and outside China, Fishman said. For the seventh quarter in a row, China's gross domestic product is down, and in the third quarter it posted the lowest growth in 13 years (7.4 percent), largely because of state investments in building airports and apartment housing. Further, China's currency, the yuan, is up 40 percent, and wages are inflating at a rate of 12 percent, putting a strain on the economy, according to the author.

State-run companies are also reasserting themselves in Chinese markets, and that's causing some companies in the United States and elsewhere to retreat or ratchet down investment.

Despite all the short-term negatives he sees for U.S. companies seeking to do business in China, Fishman is clearly bullish on the country long-term "because of the big trends, because of the demographic story, not market reforms."

Read Full Article


Keywords: international trade, value chain, supply chain management, retail supply chain, supply chain planning, investing in China, China continues to be attractive to business