China4B2B Blog

Dear friends,

Once more I am back to Singapore. My last trip was in early march. Now is late April and the weather is starting to show its seasonal strength!! Hot and humid days in Singapore are a hallmark. It is interesting to see how resilient is Singapore. its economy is coming back just from a couple of bad months early in the year. The newspapers are filled with job openings, however my friends tell me that some industries are still suffering the global recession effects.

The shipping industry, for example, has significantly slowed down in Singapore to the point that some shippers are willing to ship from Singapore to Europe for only $300-500 usd per container!! The priority is to retain their customer base. Competition has heated up so much that some shippers are starting to tumble.

The big question in averybody’s mind is if China would come out of this recession stronger and maybe more resilient. Now China is once more fostering the growth of business manufacturing. China is relaxing some rules and trying to ease loans for entrepreneurs. Some regulations are being lowered to facilitate exporting. In some regions salaries have fallen due to the slowing down of manufacturing exports from China to the world.

Next week I will be in Shanghai for the auto show and see what is new and what strategic and strucutral changes are affecting the auto industry in China. As many already know, China is close to reach similar automobile and trucks production levels than the US. This has made China the beacon of growth for American car makers (at least for the short term).

A new set of business opportunities are opening in China again, although textiles have been hit hard by the recession other metal-mechanic related industries seem to be finding global niches for their products. Other Chinese industries have turned inward to foster growth by targeting the rural areas and continue riding experience effects through volume. Examples are appliances and cellular handsets.

Pollution continues to be an issue and the new wave of manufacturing growth may hamper some of the China’s government efforts to improve the quality of air and waters.

By the way I have a chance to visit the construction site of Shanghai 2010 sustainability fair programmed for next year. They have working at a fast pace to get these new pavillions and forums ready. The site is impressive and by the looks it promises that it will be a world class event. 

Well my friends, I will tell you more about China and Asia once I visit the auto trade show.

Regards to all and wish you good business and good health,

Jesus Ponce de Leon

President China4b2b.com  and jpdel.com