How to Capitalize on China Buying Spree in 2019?
The fastest measure to cool off the existing China-US Trade war is for China to buy massively and to eliminate the trade deficit with US
By buying soybeans & LNG alone from US will not be able to close up the trade deficit gaps and of around US$200-600bn
Therefore, the most efficient method to square up the trade deficit with US will be - Reduce on China made products - Shifting production to elsewhere
Shifting production or final assembly to ASEAN, such as Vietnam, Philippines, Cambodia, Myanmar as well as into Latin America, such as, Mexico, Chile, Peru, Brazil and Argentina or even the possibility to East Europe or Africa nations would do a lot to reduce the U.S. deficit with China
You can’t get rid of the bilateral deficit unless you shift the location of final assembly out of China. The math doesn’t work.” ~ Brad W. Setser - Council on Foreign Relations.
Closing the trade gap would require enormous changes and it would require an all out effort from procurement to production and logistics (transportation)
Come & join us at the forthcoming OBOR Global Conference to discover your opportunities
Guangzhou 21-23 Feb 2019