China Slows Down the Global Supply Chain

There are people in some manufacturing circles that suggests that the loss of millions of manufacturing jobs over the past decade can be blamed largely, if not entirely, on China's emergence as the world's low-cost producer while flouting the global trade rules that other countries follow. China, for instance, "has consistently manipulated its currency to steal productive capacity from the United States," observes Kevin Kearns, president of the U.S. Business and Industry Council. This currency manipulation has allowed China to "devastate America's invaluable productive industries, addict the country to debt-fueled, bubble-created 'growth' and destabilize the global economy."

What is the result of this? who can predict!While politicians and trade groups debate the merits of applying some sort of sanctions on China, for those manufacturers already doing business overseas the situation is becoming even more complicated and restrictive, thanks to a push among the Chinese for new import/export regulations. According to Jackson Slipek, a senior consultant with the Trade Management Consulting team at financial giant J.P. Morgan, there are three areas attracting the most attention from Chinese regulatory authorities within the context of China-U.S. trade: anti-dumping, China Compulsory Certificates and additional import license requirements for encryption products.