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June 2012
EDA Office of Foreign Trade • Riverside County, California • USA
China/ US -Connected at the HIP
April 2012
C
hina continues to be on
everybody’s mind relative to trade
and potential opportunities, but
also continues to mystify!!
These questions continue to be asked
by many of us, unless you have actually
lived in China, and at the same time
built a bridge between both countries! I
am one of the fortunate ones who have
taken this step.
China with relatively the same land
mass as the US has approximately one
billion more residents. The Central
Government and Provinces continues
to build the country’s infrastructure
including new roads, bridges, rail, port
and airports during the current 12
th
- 5
year plan.
The most important take away here
is the Chinese are becoming big
consumers, with a burgeoning middle
class approaching 200 to 300 hundred
million! This should create increased
opportunities for our companies to
develop or enhance export strategies.
With transportation costs at over 50%
of all inbound and outbound costs, it
will be important to create a sound
real estate and supply chain strategy
on both the US and China side. Further
understanding bondable warehousing,
foreign trade zone’s and third party
warehousing in China & US are
important elements in lowering costs
and creating successes.
Of course, County of Riverside EDA
Foreign Trade and US Department of
Commerce Foreign Trade specialists
are available to assist with other
required needs to create a smoother
entry into China.
The Chinese consumer will be the
largest consuming market in the
world in close order. We can take full
advantage of this if we continue to
position ourselves to stay competitive
and hopefully create jobs and increased
revenues.
It is important to realize the US and
Chinese are literally CONNECTED AT
THE HIP!!!!
Written by;
Herb Grabell, SIOR Senior Vice President- Grubb & Ellis/ Global Logistics Team
herb.grabell@grubb-ellis.com