China's Impact on U.S. Retail
The new decade has opened with many analysts focusing on the significance of the manufacturing rebound in China. Indeed, Asia in general is beginning to post results that indicate a more robust foundation upon which the world economy can use to climb out of the doldrums.
For CE retailers and manufacturers, this poses a long-term impact on their supply chain and profitability. Although current economic warnings emanating from the UK and Germany are cause for deep concern, the Chinese economic stimulus and tax incentive packages seem to be the necessary drivers to move the world economy forward.
Many analysts, though, are cautious on that point and divided on its meaning. The caution stems from memories of Japan's economic miracle in the late 1970s and early 1980s, and the fact that it is mired in economic stagnation today. Based on China's newly revised 2008 GDP calculations - factoring in a realistic growth rate of 8 percent - it appears that China could soon overtake Japan as the world's second largest exporter. Furthermore, Beijing forecasted last December that it is poised to overtake Germany (the world's largest exporter) to claim that spot as well. Strong initiatives to decrease energy consumption by 20 percent this year and incentives to increase factory efficiencies could help to increase its export levels at substantially lower costs.