Surprising ways in which importing from China can benefit a country
It is not an unknown fact that the Americans are nowadays getting more than just cheap prices on the products that are made in China. According to research from the Federal Reserve Bank of San Francisco, every single dollar that is spent on a product made in China, 55 cents go the US businesses for different services like sales and marketing. In fact in the year 2013, 2.8% of US consumer spending went to the products that were made in China, as per another relevant study.
All this research comes amidst a heated debate about the present value of foreign-made products as there was a sudden dip in the US employment rate to 9.2% in July after a steep rise since the last 3 consecutive months. This data clearly shows a picture of the composite nature of US-China trading relationship and how interlinked the two economies have become. Overall, it has been seen that a huge range of goods and services that are sold in the US are manufactured within the country, according to the San Francisco Fed research. However, clothing and shoes are an exception. Nearly 38% of the US dollars are spent on Chinese items, compared to 24% on US-made products.
The burgeoning China market
What is the reason behind the increased¬†import goods from China¬†? Even as the United States of America purchases goods from China, they also ruthlessly sell into the market of 1.3 billion consumers.¬†China¬†exports¬†ranks as the third-largest USA‚Äôs export market, just behind Canada and Mexico. Between 2000 and 2013, US export of agricultural products and electricity to China rose 468% to $92 billion and its export to the rest of the world increased by 56%, as per reports by the US-China Business Council.
The little-known benefits of importing from China
Studies reveal that China has always been experiencing unprecedented growth in its Gross Domestic Product, manufacturing, other economic sectors and in exports. Increased¬†China¬†imports¬†can soon generate long term and short term growth within the nation. Here are some of the benefits of importing goods from China.
- Cheaper goods with lower taxes: As long as you comply with the customs regulations, you are allowed to purchase goods from China at a way cheaper price and also with lower taxes than what you might had to pay if you would deal with another home nation. Since you act as an independent retailer, you can purchase your products directly from the manufacturer and import them within our own country. China doesn‚Äôt need any special license to purchase products.
- Direct control over distribution model: One more advantage of not having to deal with a middleman nation is that you will have direct control over the distribution model of your business. You can either sell the products online or rent a store and even sell them in person. Hence, you get enough flexibility that a major retailer might not have.
The purchasing process of goods from the factories of China, are handled by the EASY IMEX Shanghai office. So, by the assistance of an¬†EASY IMEX import agent in China, you can alleviate the stress of the process of importing goods to your country.