International Trade.

International Trade

Over the years, China has been aiming at enhancing the overall performance of its economy. As a result, its leaders have been keen on formulating as well as implementing stratagem that is focused on the realization of the aforementioned objective. Most recently, the government announced that it is concentrating on establishing robust ties with some strategic business partners (Stevenson and Bradsher). The fostering of partnerships serves as an avenue through which the Chinese can enhance the general performance of their economy. The government entered into a partnership agreement with South Korea. The nature of the agreement that was signed between these two countries renders South Korea as China’s largest trading partners. Australia has also been a major trading partner with China. This article indicates that the representatives of these two countries are working on modalities that will facilitate them to enhance the quality of their strategic partnership agreement.

The international business partnership can facilitate the enhancement of the economic performance of a country. This form of partnerships facilitates countries to improve their market shares by way of venturing into other countries. The Chinese are concentrating on marketing their products abroad. This move will enable them to improve the demand for its products, thereby the economy is likely to benefit through realization of export revenues. China is amongst the fastest developing economies across the globe. As a result, it is seeking to become the economic powerhouse of Asia (Stevenson and Bradsher). The government has progressively been negotiating with some of the countries within this particular region, such as Taiwan and Japan, with the aim of fostering trade partnerships.

Key:

  1. North America (Excluding US)
  2. Europe
  3. Sub – Saharan Africa
  4. Arab World
  5. West Africa
  6. East Asia
  7. Australia
  8. S.

Evidently, the Chinese appreciates the essence of international trade. They are conscious that international trade is likely to facilitate the growth of its economy. The Chinese government needs to put in place mechanisms that will allow other countries to benefit from trade partnership agreements. Most recently, the central bank enhanced the value of the Renminbi. This move was encouraging International exporters to export products into the country. The enhancement of the Chinese currency value will also enhance the general competitiveness of products from other countries (Stevenson and Bradsher). For years, the Renminbi has provided Chinese commercial entities with a competitive advantage. Products or services, which were dominated in the aforementioned currency used to be cheaper than those being rendered by the competitors. As a result, they used to generate more demand than their competitors, which led to the realization of comparatively high levels of export revenues. The government appreciates that international trade by the value of the local currency against the U.S. Dollar. The US dollar is normally employed as the standard value of exchange during international trade. This attribute has led to the strengthening of the US dollar. The value of the US dollar is normally determined based on the prevailing economic factors, whereas the value of the Renminbi is defined by the central bank. The China regulates the worth of their currency to enhance the competitiveness of their products in the international markets.

Despite the overall degree of progress that has been realized with regards to the liberalization of trade in China, multinationals still claim foul play. This article reports that multinationals are subjected to double standards with regards to the implementation of the law. The article reports that there are numerous instances, where multinational corporations are treated unfairly (Stevenson and Bradsher). As a result, it is essential for the government to look into this issue and solve it. The prevalence of such setbacks is likely to have negative ramifications on the growth of international trade in China.

Works Cited

stevenson, Alexandra and Keith Bradsher . “China Builds Financial Ties to Neighbors.” 10 Nov 2014. The New York Times. Internet. 24 Nov 2014. <http://www.nytimes.com/2014/11/11/business/china-moves-to-open-economic-links.html?_r=0>.

 

 

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