Lawyers on Logistics, China’s Policy Toolbox, Foreigners Prey on Chinese Labor, and The Rise of Female Consumers

Monday, October 29, 2007 18:49
Posted in category Uncategorized

InterConnect Winter 2007 Report on Logistics (PDF Report here)
Based in Clevland Ohio, Benesch, Friedlander, Coplan & Aronoff LLP has just released a 6 pager on the status of logistics in China. At 6 pages, this report was written from the copilot seat of a B52, however where their report gets interesting (and why I have included it) is on the 2 pages they devoted to the security regualations related to the Security and Accountability for Every Port Act (“SAFE Port Act”) and Container Safety Initiative. For those of you who don’t know, these two policies will have a massive impact on frieght as ports exporting containers to the U.S. will be required to scan the contents of the container before being put on the boat…. and regardless of whether or not the deadlines are met, and/ or foreign governments actually make the investments, these are policies that will affect everyone as the investment required to meet the requirements of SAFE and CSI will be shared by ports and consumers alike.

How China Could Crash the US Dollar on a Whim
While I generally do not put much into time into the arguments made by protectionists, I will admit that looking at the “what ifs” no matter how remote can only be a good thing from an academic and risk mitigation perspective. Therefore, when the author of the above article alerted me to his article, I thought to myself that this article possessed some interesting nuggets of information that my client (including my readers) would benefit from… and I was right. While not overly protectionist, this article looks the tools China (and effects of those tools being used) has in its tool belt should the relationship between the U.S. and China go pear shaped.

American Imports, Chinese Deaths,, ILRF Critiques Wal-Mart’s Sourcing Practices, and China’s Real Toy Story are all stories and reports that share the same theme. Foreign firms need to be held accountable for their operations in China. It is one of the topics that I discussed with the Accountability group Friday night over dinner, and it is going to be a topic that will be elevated to a higher level as product recall investigations start bringing many of the cost cutting measures foreign buyers accept to light. The issues highlighted are some of the most important, and I will cover them more fully on Crossroads later this week.

The Rise of Female Consumerism (PDF Report here)
Mao once said that women hold up half the sky, and if this EY report is correct, they are more than pulling their weight at the cash register. Selling into China en mass has been every retailers dream, and no doubt this report has been thrown out to wet the appetites of group who have yet to enter China. At 9 pages, it is a quick and easy read with some very interesting graphs (EY estimates 1.2% of the female population spend 100% of their monthly wages).

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5 Responses to “Lawyers on Logistics, China’s Policy Toolbox, Foreigners Prey on Chinese Labor, and The Rise of Female Consumers”

  1. Jay Boyle says:

    October 30th, 2007 at 1:21 am

    Regarding China Crashing the US economy.

    The author fails to say that the two economies are co-dependent. In the last 5 years China’s export sector of the economy has not grown proportionally to its internal consumption and as a result every hiccup in the US economy trickles back up the supply chain to China. Whatever China does intentionally or unintentionally to the US it will also do to its own economy.

    As social stability is the number one goal I do not think it will intentionally kill the goose that laid the golden egg. Look for policies that will continue to promote full employment, transitioning away from the state sector while increasing domestic consumption and weaning itself from export led growth. Look for investments in environmental technologies, agricultural infrastructure, agricultural information, insurance (not one toy company had product liability insurance) and development of provincial or semi-private pension funds. (Think CALPERS)

    Jay

  2. Rich says:

    October 30th, 2007 at 6:12 am

    Hi Jay,

    I agree with you with regard to some of the holes in the argument. However, I think the author did a pretty decent job in what space was given to them to at least layout some of the tools.

    In the end, the primary reason why I discount many of these is that they are not coming from people like yourself who have 10 years. If it came to it, China and U.S. both have policy tools to smack each over the head with… and like conjoined twins, both parties would be left with a headache.

    Where I do like these articles though, is that it forces me to think what if. No doubt, some of these tools are going to be used in controlled manners (strengthening of RMB for example), and that these movements will have an impact.

    R

  3. Rich says:

    October 31st, 2007 at 6:17 am

    Following up on the Interconnect report, K&N has an interesting take on SAFE as well. you can download their newsletter here

  4. himanshu says:

    November 17th, 2007 at 9:39 am

    hi, i like to work in china i like china’s crowd.

  5. Rich says:

    November 18th, 2007 at 3:08 am

    Himanshu.

    Are you baiting me? Is there anything in particular you like about China’s crowd?

    R

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