make money importing from china

8/4/2019 Make Money Importing From China

1/22

1 | P a g e H o w t o M a k e M o n e y I m p o r t i n g f r o m C h i n a - R e p o r t


2/22


Make Money Importing From China

A Free Guide For You To Explore New OpportunitiesOffered Through Opening Up The Doors To China AndLearning What It Takes To Make A Successful Business

Importing!

Brought to you by Mark Ames

To Learn More About This Subject Visit

How to Import from Chinaby clicking here.

Stay Informed!

Subscribe to Our Mailing List

By clicking here.

Sign up free today, to receive import news about China & updates about

importing from China and for valuable offers like Ebooks and other special

offers available in the future!

(You will be under no obligation to buy anything!)
http://howtoimportfromchinablueprint.com/sign-up/http://howtoimportfromchinablueprint.com/sign-up/http://howtoimportfromchinablueprint.com/ebook/


3/22


TABLE OF CONTENTS

Make Money Importing From China ........................................ 2

A Free Guide For You To Explore New Opportunities Offered

Through Opening Up The Doors To China And Learning What It

Takes To Make A Successful Business Importing! ..................... 2

Free Trade with CHINA THE Pros and Cons ............................. 4

Reasons Behind Chinas Trade Surplus ................................... 6

In-Depth Impact of Chinas Exchange Rate Policy .................... 9

A close look at why the Quick Rise after the Slowdown ............ 11

Is Internet Censorship Hampering Chinas Trade? ................... 15

Deciphering The Foreign Trade Law of China .......................... 17

Doing A Background Check On A Chinese Supplier .................. 19


4/22


FREE TRADE WITH CHINATHEPROS AND CONS

Free trade is nothing but a magnificent system that allows traders to

transact business without any government interventions such as subsidies,

taxes and tariffs.

Free trade is more than just an agreement its like a treaty or law for

transacting business between the two countries.

There are numerous countries such as New Zealand, Australia and some

other Asian countries that have signed free trade agreements with China.

As the Chinese products are available at cheaper prices than many domestic

products, it is good to get into a free trade agreement to supply citizens of a

developed country with a high standard of living when buying products from

home would be prohibitive due to the cost of labor being very high.

Of course many people argue that if a developed country enters into the free

trade agreement with China, most of the developed countries people would

lose their jobs.

This is a well grounded argument but according to the experts in the

financial world, China can not manufacture everything at lower costs. While

they are specialized in manufacturing some products very cheaply there are

many products even they need which they can not produce efficiently. For

instance, China manufactures toys at cheap prices and America

manufactures computers at cheap prices. If these two nations enter into free

trade, it is beneficial to both the countries as they could trade the toys and

computers between them.


5/22


There is another argument arising with the wage conflict between the China

and other developed countries. If you take America and China for instance;

the average wage per person in China would be around $2 per hour and in

America, it would be more than $10 per hour.

This argument would be correct and possibly matter if both countries where

involved in manufacturing the same product or serving the same needs.

But in this situation, the countries which entered into free trade agreement

with china would definitely concentrate on various other areas rather than

the ones Chinas specialized area.

The countries that enter into free trade with China should be a happy lot

because they can get high quality products at a cheap price because of the

Chinas low labor cost.

For the developing and developed countries, free trade with China will

provide huge benefits in terms of cheap labor which results in the low cost

quality products and services for their citizens.

Free trade is one of the best ways of taking advantage of the resources

available in different countries. What China has, other nations may not and

vice versa and free trade helps bridge that gap for the benefit of both

nations economies and their citizens.

Regardless of where you stand on the above arguments and weather you

believe it will benefit your country as a whole, the fact is this is the direction

all countries are headed and you must decide if you want to fight the

inevitable or learn to profit from it.


6/22


REASONS BEHIND CHINAS TRADE SURPLUS

First of all a trade surplus is defined as a positive balance of the trade, in

which the exports exceed imports of the country. This section will gives you

a brief explanation of the reasons behind the Chinas trade surplus.

China is a country which supplies high quality, low cost products because it

maintains a stable buisness environment comparable to other countries but

with a much lower cost in labor.

It is almost thirty years now since China entered into the globalized

environment and in that time has become one of the most influential

countries but, how?

The centralized government of china helped set up manufactures set up

process to produce things which the average Chinese citizen can not afford.

Because they did this they can now sell to the world hungry for cheap

products and then use the income that is raised to pay for things like

education and equipment to better the whole country of China as a whole.

Lets look at how on a smaller scale it works.


7/22


Chinas trade surplus can be best explained with reference to the United

States. While china is popular for manufacturing low cost via low cost labor

products it does so to with another financial major disadvantage the USA

exploits.

If you look at the Yuan Vs Dollar, it is clearly visible that the undervaluation

of the Yuan would result into at least two to three percent trade surplus.

How does this work?

Well, if you lets say a loaf of bread cost either a Yuan or a Dollar in your

own country. Okay, now lets say you tried to buy a loaf of bread in the USA

with a Yuan but no one would sell it to you unless you had a Yuan and some

extra change. Now lets say you gave a bread seller in china a dollar for a

loaf of bread they would give you a loaf of bread and few extra slices!

In a nutshell, the low cost labor, less consumer spending and undervaluation

of the currency are now three main reasons behind the Chinas trade

surplus.

The trade surplus between the two countries has created a co-dependency

between the two countries.

This dependency ratio is a major concern for China. If you compare the

Chinese individual dependency ratio with the United States, you will get a

clear picture. In China, one working individual has to support 0.4 non

working individuals where as in United States the figure is around 0.66. Thisis mainly because the major work force in China depends on agriculture and

lives in the rural areas. This obviously leads to low consumer spending.


8/22


In United States, the consumer spending accounts almost 70 percent of the

GDP where as in China, the figures are around 40 to 50 percent. Low

dependency plus low consumer spending are more reasons for the Chinas

trade surplus.

The Chinese government has made small changes to value of the Yuan but

small and moderate corrections in Yuan against major currencies will not

solve the Chinas trade imbalance.

A major revaluation would definitely be required to get the Chinas trade

surplus to a moderate level. At this point it does not seem likely Chinas

government is inclined to make such a change.

For the foreseeable future it is expected that China will continue to export

and manufacture products and that profits from these exports fuel the future

growth of exporting.

Unless and until China takes some serious issues such as revaluating its

currency, its unbridled pace of urbanization and building a proper social

security system into consideration, it will be very difficult for them to move

into reasonable trade surplus boundaries.

Only growth in the demand within China for products it can not produce

itself will result in imports that would help balance the trade surplus.

For now and the foreseeable future China prepares to don the mantle of the

worlds biggest exporter!


9/22


IN-DEPTH IMPACT OF CHINAS EXCHANGE RATE

POLICY

For the past couple of months, Chinas exchange rate policy has been a

question of debate for many economists the world over. In fact ever since

China announced to some major changes in its exchange rate policy in July

2005, it has attracted the attention of all the major economic players across

the globe and has even been put under scrutiny by them for several different

reasons.

What many people tend to ignore is the fact that Chinas exchange rate

policy has helped it in becoming one of major stabilizing forces of the world

economy.

Many economists believe that China has yet to face the most difficult times

from its own exchange rate policy. They believe that the Yuan will soon be

forced to depreciate and this belief has been further strengthened by the

decrease in Chinese exports over the past 14 months.

However, with the exports seemingly recovering and in fact showing an

increase since December 2009, economists have been speculating that China

maybe in fact looking at more good times ahead due to this exchange rate

policy. This belief has been further strengthened by the announcement of

the Chinese government to keep the Yuan stable to help the beleaguered

exports of the country.

The Chinese authorities are facing many challenges with regard to their

exchange rate policy that has unfortunately been undervalued by major

world economies. The policy has been criticized despite the fact that China


10/22


has maintained a fast growth rate and increased its exports and is becoming

an ever more global economic power. But China is also facing tremendous

pressure to appreciate the value of Yuan for the betterment of not only the

Chinese economy but the world economy as well.

Weather China will budge in front of world pressure and make significant

changes to its exchange rate policy, is a question that only time can answer.

However as of now, it does seem too inclined to move towards making

changes in the policy.

The Chinese officials realize the importance of greater flexibility and the

need to appreciate the exchange rate, to ensure growth based on greater

consumption.

If China continues to ignore the world pressure, it might result in a rejection

of its exports by the developed world to force the country to make changes

to its exchange rate policy.

A country cannot be expected to sacrifice its own interest by making policy

changes that might hamper its growth. However, the worlds demand of

making changes to Chinas exchange rate policy can prove beneficial not

only for the country with the third greatest global economy, but the entire

world as well.

Only time will tell.


11/22


ACLOSE LOOK AT WHY THE QUICKRISE AFTER THE

SLOWDOWNIn the recent years, China has shown an unprecedented growth in its

exports with the result that Chinese products are flooding every major

market across the world.

But, for a short time there had been a significant decline in the export of

various goods from China, due to the global economic recession.

However, since December 2009, China has once again shown a growth in its

exports giving a rise to the hope of recovery from the economic crisis. In

January 2010 alone, the exports from China grew by a margin of 20% which

many see as a sigh towards the over all economy of the world picking up

once more.

To put this into perspective you must understand that the Chinese economy

is only the third largest in the world.

The increased exports are not only helping in strengthening the economy of

the country further, but are also enhancing the position of China as a global

economic power.

Within a few years, China has established itself as a major player in

international economy. The growth rate of its foreign trade has been far

greater than the rate at which the countrys GDP has grown in the last

quarter of a century. China has earned success in all types of products that

it has been exporting, be it consumer items, toys or even industrial goods.


12/22


The Chinese government has also promised to stabilize the Yuan to help the

exporters who are still reeling in the aftermath of economic recession. The

decision has undoubtedly been influenced by the fact that Chinese exports

have shown to impact the world markets in a very significant manner. With

the recent rise in the Chinese exports, the world markets have also shown a

rise in the cause and effect of many stock prices.

Since, Chinese exports are having such a great impact on the stock markets

across the globe, it is being speculated that the day is not far off when China

will become an economic superpower.

China has emerged as a tough competitor for other Asian economies that

thrive by exporting the same types of products. Seemingly the decision by

the Chinese government to allow various Multi-National Corporations to use

their country as a platform for exporting goods is paying great dividends.

The government has also developed even more new policies to increase

productivity with emphasis being laid on the development of foreign trade

for economic growth. Its Clear As China proceeds on its path of progress,

its government plans to come up with ever better policies and procedures to

further enhance exports and establish a much stable economy.

Unlike other countries with low labor cost China is a stable country with a

stable government able to anticipate the future, plan ahead, execute future

plans while still saving enough in reserve, to weather the past economic

world recession.


13/22


CARRYTRADE AND ITS EFFECTS ON CHINA

Over the past decade, China has emerged as a major contributor in

international trade and economy. With the country shedding its conservative

traditions and making way for a more open economy, China has captured a

major market share in many various consumer as well as industrial goods.

As such, it is quite obvious that the country is concerned about the future of

dollar carry trade and its effect on various currencies and economies across

the globe. As per a recent survey, it is estimated that dollar carry trade

stands at $1,500 billion, which is much more than any currency trade has

witnessed in the past.

Currency carry trade is basically a means of earning profit by taking

advantage of the day to day difference in the exchange rate of two different

currencies. With the dollar strengthening its position quite steadily in the

market, it is being speculated that the carry trade will start to unwind andwill make the US dollar the worlds most opted funding currency.

Undoubtedly, China is looking forward to making its currency, the Yuan as

the most favored trading currency.

This is important not only for making China as a global economic power but

will also help the country in reap the same great benefits from the United

States envoys.

That is why China is keeping a close eye on the future of dollar carry trade

and its affect on various global currencies. While many people feel that

China is still a long way from making the Yuan into an internationally

acceptable trading currency, the fact is that the country has been on a path


14/22


of orderly development for a long time. China does not even seem to need

to heed even the most stinging criticism from the Western nations; China

has been keeping its companies and financial markets under close scrutiny

for this same reason.

This has not only led to a steady robust economy in China but it has also

allowed China and its buisness to gain control over more and more US

Dollars. China has also been quite successful in saving its markets from

opportunistic foreign investment.

China is making changes in its economic policies that are aimed at making

way for new financial support resources helping in the growth of

international trade.

Even though China had openly criticized the US for manipulating global carry

trade, the massive expansion in bank loans by China now have resulted in

attracting the criticism and scrutiny of financial experts from both within

China and from outside the country.

China however seems to have realized that dollar carry trade might

eventually prove even more helpful for the growth of its economy and shows

no signs of backing down.


15/22


IS INTERNET CENSORSHIP HAMPERING CHINAS

TRADE?The internet has played a very important role in the development of

countries all around the world. Earlier it was very complicated for any

country to communicate in a quick way and interact as fast in business and

trade together, but with the advent of internet things have change

considerably.

Today, with the help of internet you can know most everything about any US

market sitting right in your living room.

The internet has virtually linked all the world markets so that anyone can

keep a close eye on what is happening almost everywhere all around the

world.

Not only the stock brokers but also regular and irregular people who are

interested in international trading have made huge profits with the help of

internet because they can check their transactions online and also receive

and send payments with the help of online banking even from their cell

phones.

However, internet also has its own dark side like hacking and virus attacks

on the systems of giant corporations that lead to a lot of financial and

personal data loss for that particular company and its shareholder and even

sometimes its customers.

These kinds of things happen very frequently and we read about it often in

the news.


16/22


China on the other hand, being a communist country is very strict about the

misuse of any technology and therefore they have implemented internet

censorship through out their Republic of China, so people there can not

misuse technology for personal gain.

New laws have been formed by the government of China that creates a kind

of censorship on anybody who is using the internet in China which also

includes government offices, multinational corporations and independent

businesses in China.

Although, these stern steps by the Chinese government have been taken in

order to neutralize cyber crimes that are happening in China, it has greatly

affected the international and national trade in China. One of the main

reasons why trade has been affected in China is because China is a

developing country and therefore most of the companies there have

connections and branches in other countries as well.

Even local dealers and traders use the medium of internet to run their

businesses. Hence, internet censorship has somewhat isolated Chinese

companies from interacting with the companies outside China.

Though, there were many people in China that had protested against the

internet censorship in China, the government of China made sure that most

of their protest blogs, forums and websites were deleted instantly and many

journalists and surfers were arrested for accusing the government with false

claims. Even today, the Chinese government keeps a close watch on each

and every website that is access by an individual anywhere in China.

While this may not seem fair by western standards it does mean that any

interaction you have via the Internet is closely looked over by a Government


17/22


who wants to build on its reputation that trading with China the easiest,

safest and most profitable business relationship you can make.

DECIPHERING THE FOREIGN TRADE LAW OF CHINA

The success of any country depends on its trade and commerce. Today, we

see United States as one of the most powerful nations in the world, but how

did they achieved this place? Trade and commerce are like vitamins and

nutrients that run the entire body.

Though they are hardly visible they decide the development of our body.

Similarly, trade and commerce are something that common man cannot

notice because of its macro scale, but it does greatly affect the development

of the entire country. China is said to be one of the leading countries that

will dominate the world politics in the near future.

Hence, it is very important that Chinese government and trade authorities

pay close attention to the foreign trade law in China.

If you look at the latest foreign trade laws in China, they have come up with

many new ideas and strategies that will accelerate the growth at which

China is progressing.

The laws have emphasized the exports of consumer goods from China to

provide them with more and more foreign currency that they can later

exchange in order to increase the value of their own domestic currency. To

this end they have invited foreign investment companies to visit China and

invest their capital in China by lowering the amount of red tape required.

These foreign companies can not only freely establish their business in China

without seeking any high level of permission, but they can also run their


18/22


businesses per their own rules and regulations without much interference

from the Chinese government.

Though, China has always promoted exports of goods from China to other

countries like United States, UK and countries in South America. They

appear to have recently decided that in the near future they will be

restricting the flow of exports and imports from China.

The reasons for this are mainly because of their own domestic demands.

However, international corporations are free to set up their businesses in

China and expand their wings into different cities that fall under the Republic

of China.

This may seem confusing at first but, as per the latest foreign trade laws

China has given itself the right to stop or restrict international trade of any

company if the government feels that the services or products of that

particular company is a threat to national security and public interest.

Foreign trade operators are still free to use any currency they prefer while

they are making transactions across different borders though because this

has been proven to earn China a lot of foreign currency that they can later

use for their progress.

This last adjustment to Chinese law may affect some traders but so far it

seems to have had little negative impact on exporting in fact as mentioned

exporting from China is still very much on the rise. It is however an

important thing to consider when anyone is deciding what kinds of products

they intend to export from China.


19/22


DOINGABACKGROUND CHECKONACHINESE

SUPPLIER

Online trade has really changed the way people do business. With the help

of internet things have become simpler today and therefore most people

prefer to go online for trading where they can sell their items quickly to a

huge audience and get their income immediately online through internet

banking.

This compared to buying a building or paying expensive rent in a high priced

location that gets traffic and hopefully customers.

Not only does online trade help us to save money it also helps us to save

time because the communication happens really fast and you can inform

your suppliers or your customers about the status of any business

transaction. With the help of online trade people have started to do

transactions with buyers and sellers in other countries like China which helps

them grow their business quickly and profitably to add more income so that

they can expand their business.

However, like any other technology internet also does have two sides to the

coin. On one side if internet promotes trade and commerce, on the other

hand it also leads to exposure of important data into wrong hands, identity

theft, hacking and manipulating business in a wrong way is always a

concern.


20/22


Many people who are looking for shortcuts and who have dreams of earning

pots of money quickly prefer to use the wrong way. Hence, they make use of

the internet in order to create false identities and pretend that they are high

level executives of big Chinese companies.

Some hackers hack into the system of reputable companies to find the trade

secrets and then come up with their own fake websites where people can be

redirected unknowingly.

To combat this kind of menace in China, Chinese authorities have come up

with their own cyber crime patrol that keeps a close eye on IP addresses and

people who are involved in such malpractices.

Since some of culprits had been Chinese youngsters playing a part of these

fraud schemes, the Chinese government announced the internet censorship

which has been so controversial. But this censorship is what stops culprits

from accessing websites they want to do fraud against. Additionally, Chinese

laws alow employers take extra measures to do more thorough background

checks on employees exporters will be dealing with.

People outside China who are often victims of such online fraud practices

have more reasons not lose their faith in employing Chinese suppliers and

employees than they would from countries less concerned about building

good trade relations.

There are many websites that have been launched by the international trade

community where they can share their problems and experience and also

information about a particular Chinese supplier so that everyone is informed.


21/22


You can learn more about these websites get the whole list and receive more

valuable information about trading with China in other publications I offer If

your interested in doing buisness I encourage you to visit my website.

For those of you who are nervous about engaging in trade with China

because it seems so far away let me say this Relax; you dont get to climb

to the number three spot in world trade from almost obscurity in little more

than three decades by treating your customer bad.

Discover how to make Importing from China part of your bright future!

Dear Reader,

I hope you enjoyed and learned from this short guide on how to make money

trading with China. If you would like to learn, more please visit

How to Import from China

by clicking here.

To Your Success,

Mark Ames

This is just extra fonts for the ViralPDF Silver Edition brander to identify
http://howtoimportfromchinablueprint.com/ebook/


22/22


abcdefghijklmnopqrstuvwxyzABCDEFGHIJKLMNOPQRSTUVWXYZ.:,;-

_!"'#+~*@$%&/\`^|^()=?[]1234567890

abcdefghijklmnopqrstuvwxyzABCDEFGHIJKLMNOPQRSTUVWXYZ.:,;-

_!"'#+~*@$%&/\`^|^()=?[]1234567890

make money importing from china

Documents