Love him or hate him – Donald Trump is taking action and shaking things up, around the world! Global From Asia tries to not get political, but when something like a trade deal between China and USA come on the horizon, we can’t help ourselves but to discuss and reflect.
Donald Trump pushed China to even out the trade deficit – and many people – myself included – were a bit weary on the outcome there. Would there be a big trade war, or worse yet, a war in itself? Would Americans get ejected from China and families (like mine) torn apart?
Seems that isn’t the outcome (for now!) and China has made a deal to buy more goods from America.
Nice!
This will bring out huge new business opportunities – those bringing American goods into Mainland China.
It is still too early to see exactly what this will do – but the questions about trade wars and other unknowns are behind us – and many, even the Trump haters, are saying that Trump called China’s bluff and has won.
More trade, more open borders is exciting for Global From Asia and its readers. We are, after all, hosts of the Cross Border Summit and always hear about the challenges of Americans (or anyone for that matter) on importing from China.
Sure, there are more and more of these Free Trade Zones – but really they are more for big brands who want to show they are genuine and from overseas to customers in China. The taxes are still high and the barrier overall is higher.
Jack Ma Has An Opportunity He’s Been Working on
We blogged about it last year – Jack Ma has been sharing in USA about the opportunities of small businesses in America to sell their products online to China (read our blog on that visit). At first we thought he was a bit crazy, as there are still huge barriers and challenges, but maybe that combined with Trump’s new trade deal will amount to something.
The Big Question
What many of my friends and members in GFAVIP community are discussing though – is what products. What does America manufacture? What can it export to China?
Don’t get me wrong, I’m American and I’m in China – I’d love to setup more businesses selling Made in USA goods to China. But for decades now the manufacturing section has been getting downsized in USA (I witnessed it myself) – infrastructure was sold off and shut down. Will all of this be built up?
Or Is It Exporting of Services?
I’m curious, is this going to include services? Other discussions in private groups I’m in shared about what about Internet companies like Google and Facebook? Those are the US businesses that would love to enter (or re-enter for Google’s case) the China market.
Is this something that China will help America export more of to China? That one is something I am doubtful of. But in a way, isn’t internet services a product to “Export”.
But let’s think about something more acceptable the politicians in China may accept – education, consulting, IT services. These are things Americans are great at, and Chinese people love / respect to be done by a lao wai (foreigner) – these are types of categories I can see being “exported” more from American soil onto China for this trade deal.
What Do You Think Of This Trade Deal – What Opportunities Do You See?
Now that was my take on the new trade deal between USA and Chin. It is exciting, it is early stage. The trend is clear, both sides have agreed the trade deficit is unfair, and China has promised to buy more from America.
The verdict out there is, what, and how, and when!
Entrepreneurs, get your notebooks out and let’s brainstorm.
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