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