The currency wars between the US and China continues to effect imports
Hertfordshire, UK (PRWEB UK) 31 May 2013
Since the onset of the economic crisis in the United States, China's trade slowed down and exports to the west declined. In 2013 there have been indications that the economic turmoil in Europe is taking its toll on China's export trade. Design 2 Limited, along with Freight Shipping International are taking advantage of this by offering new freight forwarding services to meet this increased demand. Freight Shipping International is offering expedited services for any freight with in-house experts in shipping from china. Until June of this year, this service had halted due to lack of demand, but with China's economy starting to grow, it is estimated that this new service will be in great demand.
One sign of this increase in demand is China's recent decision to boost its domestic consumption, rather than having to rely on the international market for demand for its products. It is safe to say that shipping from china has been negatively affected by this financial crisis, and it is looking for ways to recover.
It is worth noting that most of China's local consumption is due to the government and the gigantic projects the state is running. These projects have resulted into ghost towns and empty shopping malls, which has been sparking the fear of the decline of China's current real estate industry. “People are being moved into the cities but that doesn't necessarily mean they can afford these apartments which cost US$100,000. These are poor people moving into the cities, so they are building the wrong kind of apartments. There are multiple classes of people that are going to get wiped out by this, people who have invested three generations' worth of savings into properties will see their savings evaporated”, said Gillem Tulloch a Hong Kong based financial analyst during an interview with news.com.au.
As the currency war between China and the United States drifts on; with the U.S blaming China for heavily devaluing its currency, thus hurting both the U.S’s export trade capacities, as well as importing from China. Coupled with the low cost of labour, the weak Yuan has at least boosted China’s export business to an extent that Japan has been forced to blatantly devalue the Yen in order salvage its export business as well as the economy. Wu Xiaoling, vice-chairwoman of the National People’s Congress Financial and Economic Affairs Committee told China Today that, “The Yuan will continue to fluctuate in both directions as the central bank strengthens market-oriented reforms.” Indicating that although China is trying to boost local consumption, it is now well aware of how crucial it's export industry is to its economic health.
China’s influence on the global export market is more of a double-edged sword. It grants the global markets affordable goods, but is it at the expense of the Chinese workers, and the international economy.
Design 2 Ltd. is based in Essex, UK. Experts in web marketing, and offering consultancy services to various industries.