Without a doubt, these are exciting times indeed. While some of the headlines may elicit groans from the ones who have been enjoying a steadily profitable time a few years ago during China’s booming “economic miracle” years… and feeling the recession’s pinch in more recent days, it should be noted that all the turmoil in the wholesale and manufacturing industries have produced some surprising new opportunities for those who adapt to the changes. Staying informed is crusial with all of this change, and the latest torrent of news to hit the wholesale and retail community should be part of the strategy to make 2010 a winning year, in spite of unexpected obstacles cropping up at every turn.
The WTO has had more than its share of headaches these days, with every event they hold resulting in a messy response from protestors and rioters in host cities. Major talks are being held at this time over the US Trade Representative’s office and the WTO and industry groups over China’s Internet policies, which have been linked to protectionist acts, allegations of online espionage, and trade sanctions, to name a few of the top complaints. Google, the online search giant, has been pushing the Internet freedom angle harder than ever, in a case that undeniably ties in to salvaging weakening trade relationships and user activity on the global scene. While the company still hasn’t pulled out of the China market – as it has loudly threatened to do – Google remains firm in their public stance when it comes to censorship of its search results, claiming that the filtering efforts of the CCP are more than just acts of keeping the peace, but rather acts of stifling growth for foreign companies in China’s rich user landscape of over one billion potential Internet users.
Free trade is a always on the lips of those who depend upon making transactions with foreign partners, and the Internet censorship issues don’t just end where Google begins. Lately there has been quite a bit of concern over the issue of online commerce, and how China’s search results filtering and overall policing of the Chinese Internet is not somehow a ploy to give favorable advantages to domestic enterprises, rather than creating a level playing field that everyone can participate in. Should customers be the ones to ultimately decide what is best, or is it within the CCP’s right to simply black-out the ones who threaten to gain too much of the online shopper’s confidence? Google’s plans to roll out a new service that promises speeds of up to 1-gigabit downloads and uploads is making them nervous. If this catches on, there will be a new and powerful market force that offers huge content to customers who like having choices.
Meanwhile, China has responded to the recent news of trade barriers and protectionism by offering an official statement from its State-run sources, telling the world that “China has been strictly following the rules of the World Trade Organization (WTO) in foreign trade since it became a member of the international organization.” Li Zhaoxing, spokesman of the 3rd session of the 11th National People’s Congress, was quite vocal about the facts surrounding his government’s involvement in trade negotiations and adherence to WTO policies. Is it a case of stating the obvious until it becomes truth, or is there something to be said for the rise of China, India, and Brazil as new influential factors, who claim that countries like the USA have been using protectionist tactics for the past decade?
It doesn’t look like China will lend its support on the topic of Iran any time soon. While Foreign Minister Yang Jiechi sounded a bit defiant in a briefing on Sunday, telling reporters that the US is to blame for putting strain on an already strained relationship by selling arms to Taiwan, the representatives from the American side were more optimistic. “The responsibility for the difficulties in China-U.S. relations does not lie with China,” Mr. Yang said.
Star power makes itself known to the members of China’s government, as Bo Xilai, the top contender for a high-level position in 2012’s political turnover for the CCP, has become something of a national celebrity. A video circulating on the Internet pays tribute to the Municipal leader in Chongqing, and details his modern thinking and fearless desire for justice in a system that is rife with corruption and internal flaws.
A little heads-up to those who have been waiting for the other shoe to drop on the yuan’s peg to the US dollar, as Chinese central bank Governor Zhou Xiaochuan said China will eventually move away from its current policies, in due time. While that doesn’t mean the peg will be dropped tomorrow, for those who have some experience working with the Chinese it’s a sign that something could happen pretty soon. Chinese officials don’t bother to make comments about anything until it’s close to the 11th hour, and this is news that should be factored in with considerable thought, as a big market shift could occur in a very small amount of time, after the yuan is given new status as global currency – and especially after we see which countries are willing to bite, once that lure’s dropped in the water.