In today’s new China has shown a dip in export and import, which, due to the economic circumstance, is bound to make consumers particularly nervous.
China, the biggest trader in terms of high-tech products shipped across the globe, has taken a real hit from some of it’s biggest clients in the USA and Europe.
It puts China on the tough year ahead list, despite there being continual trade, is has dropped off dramatically.
In the UK, many companies cut their international trade and instead, invested in ways of producing products on British soil. Machinery which could produce exactly the same quality as the Chinese businesses we purchased and run in the UK, this minimised staff costs and running cost, as well as the costs of shipping and charges.
Many companies, rather than looking further afield are having to keep production costs to a minimum which means keeping things in-house.
Shipping isn’t always straight forward. There are charges and a guarantee needs to be drawn up in the guise of a Letter of Credit to guarantee payment from clients.
There have been cases in the past that companies haven’t adhered to letters of credit and thus many British and European companies have lost a lot of money from sending products and materials.
So, what happens now? We sit tight and prepare for the rough ride. We can’t deny 2012 will be a tough year for business. Where some fail, some flourish.
It’s sometimes difficult to stay positive at times like this, but at the end of the day, if your business can survive in these hard times, it will flourish as time get better.
There is plenty of support and if you need to start purchasing international products or trade overseas, there are people who can walk you through every step.