Archive for December, 2009

Ben Sainsbury, China – December 2009

Thursday, December 3rd, 2009

Doctor D and Company

Hey how are things going?  We will just have to wait and see what happens with the Taiwan issue, I am probably more of a Henry Kissinger man when it comes to international relations.  Anyways this past week has been great.  This week we are throwing a big fair, that includes companies from all over China and a few from surrounding countries, such as Korea, Japan and Taiwan, but mainly they will just be Chinese companies.  With global exports down around 15-30% the government officials are trying to stimulate the Chinese market into buying Chinese made goods.  The Chinese stimulus unlike the American stimulus artificially kept the economy growing around 8% this year but if exports don’t rebound China will be hurting, so they need to stimulate the Chinese consumer to buy.  With the Chinese growing in wealth now it is a good time to stimulate the Chinese consumers to buoy up the Chinese economic engine in the future.  With emerging markets such as India and Vietnam where things can be made dirt cheap, and with the Yuan being artificially low China can currently compete, but if they value the Yuan where it’s really supposed to be valued China will lose its exporting edge. So this fair should be a good one.  They are expecting around 100,000 people to attend, most of which will be business owners and government officials not to mention regular Joes that want to purchase product. I will be returning on the 8th of December.

Take care all,
Ben