Trade War Concerns

There has been a lot of concern about a trade war between the U.S. and China. As President Donald Trump puts it, he is working to get the best deal for the American people while acknowledging that Chinese President Xi Jinping is working to get the best deal for the people of China.

This may seem rather simplistic to some, but it is the way it should be. And if both parties approach the negotiations in this spirit–acknowledging the other has legitimate and reasonable concerns–then it should all work out because the bottom line is the United States and China need each other.

Both countries are carrying heavy debt burdens and they are dependent on commerce to keep afloat. Since opening up to Capitalism, China has experienced incredible economic growth but it has also constructed massive, state-sponsored improvements that need to be paid for. The U.S. government, as we know, has its own problems with considerable debt.

China is our second biggest trading partner (next to Canada). The U.S. is China’s largest trading partner. It is in everybody’s best interest that both have vibrant, profit-producing economies.

Part of our past economic troubles have stemmed from U.S. trade policies that, quite frankly, may have benefited a few but were not in the best interests of the American people as a whole. It seems there should be plenty of room to correct this without placing China in an unacceptable bind.

At Avela Consulting we see plenty of opportunities to promote win-win commerce between the two countries. The engine of Capitalism has quickly produced a Chinese middle class eager to buy Western, particularly American, products. From our offices in Houston and Shanghai we have witnessed this grow as we developed an organic network of in-country resources capable of reaching the China consumer market.

While no one can predict the future, we are confident that discussions between President Trump and President Xi will lead to a more balanced trade relationship that benefits both countries. A trade war is not in either country’s best interest, but prosperity-producing commerce is.

As the trade negotiations produce greater opportunities for commerce, as we believe they will, large and medium-sized business that act quickly have an opportunity to position themselves in this market early. Avela Consulting has the international relationshipsalready in place in-country to provide our clients access to a vast, quickly developing market.