The days when China’s economy soared to new heights are long gone. The truth is that China’s economy has been very slow in recent times. In October, the World Bank lowered their expected economic forecast for China’s Gross Domestic Product. They lowered the forecast by 0.2% in 2014 and 0.3% in 2015. A result of the sluggish economic in China deals with the prices of goods. In recent months, the prices of goods from China are falling and any price increases are unlikely. The US Labor Department reported that Chinese import prices were down 0.1% last month.
There are numerous factors that are contributing to the slow-moving economy in China. The demand from numerous trading nations, where China can export their goods, is lowering their prices for goods that once had domestic appeal. The increase in the wages for Chinese workers also means that the cost for goods will be impacted. And events in recent years in Asia, such as the 2011 Tsunami in Japan, impact the prices and the economy.
China might be an exporting superpower, but exporting is not going to save their situation and drive their economy to new heights. The key is on the domestic front. Chinese consumers must spend more to save their economy.
The question looms: How does a slower Chinese economy impact ocean freight shipping? China is a leading shipping nation with many ports. But lower prices for goods could also be a blessing in disguise. Those companies that import from China should speak to a trusted freight forwarder. They will guide you to make sure that the economy in China, no matter how slow it is, still works for you.