Cash in on China’s clash with US
The world pays attention when the two largest economies start to vie for their positioning on the global stage.
Now that President Donald Trump has turned down an invitation to re-join the TPP, it looks like the US will be going it alone for a while.
Partially in response to US concerns about the trade imbalance, China is now calling for more imports.
This is great news for providers of high-quality goods and services.
Loosening restrictions in many industries further facilitates this.
So it is time for some New Zealand companies to take another look at what’s in store. Although we have not really seen the true impact of potentially higher tariffs imposed by both the US and Chinese governments, businesses on both sides are bracing for the impact.
Even at this point of uncertainty, trade diversion is likely. This will create opportunities for countries and companies that have never really been in the game in a big way with either China or the US.
Brazilian pork exports to China have experienced a huge rise of 151.6 per cent year-on-year.
And now that China has imposed a 25 per cent tariff on pork imports from the US, the numbers are likely to increase even further.
Brazilian farmers will also benefit from tariffs that may be imposed on US soya beans.
Should this tariff go ahead, European buyers will surely be keen to snap up US soya beans.
And if China decides to impose more tariffs across a huge range of agricultural products, then there will be huge Chinese demand for such products from New Zealand and Latin America.
What this means is that we are starting to observe a shift in the movement of trade flows – not a surprise, given China and the US
With this reset, we could see a more inclusive and globalised world.