China is signing trade deals with Canada, Australia, USA etc. I personally think that it will help companies which produce raw resources, like agricultural products etc. But I think it will hurt manufacturing. Personally I think it is a bad idea for these countries to sign these deals. Which will be the winners and losers company wise ?
China has been quite busy signing trade deals left and right. I believe they are smart enough to know what will be good for them so I'm sure these deals are going to benefit them more than they will the countries they've signed them with. The reason, is prior to the signing of these deals, some people preferred buying cheaper Chinese products. This won't change any time soon.
In fact, I just read a news that HSBC announces that REMNIBI is now overtaking the YEN as the 4th most popular currency of trade next to USD, GBP and EURO.. oh man! I think one day, we will all have to convert our savings to this currency that we are not familiar with. But wan can you do? Time deposit is between 2-2.5 percent compare to the nearly zero when you put your time deposit in USD.
China is always fighting for free trade, but most countries can't accept that because it will kill local production. I don't know the details of the new deal, but more benefits to China I am assuming.
Yeah, they will never get major free trade agreements because they have no protection for intellectual property, which is a huge part of the value to the companies from developed countries. The USA is never going to have free trade with China so they can flood us with cheap manufactured goods and at the same time have ´Dissneyland´ and basically rip-off every Apple and Microsoft product ever made.
It will benefit china more than anyone else, certainly not those in US manufacturing. Although as china develops they will get less competitive. I'm not sure how far away it will be before Chinese wages are at western standards.
I don't actually think it means a great deal. China's constantly signing trade deals, renewing deals, or changing the terms of trade. China's big coming out party was when it entered the WTO, and since then trade deals have just been incremental to the country's evolution.
American companies will also benefit from it, right? I mean, they get to source their goods at a cheaper price, and I bet that there's also quality manufacturers in China. It's just that there's so much crap they make, and that's all we see... It really comes down to wether or not they will respect the intellectual property and all... Any thoughts on how to create value out of all this movement?
