Global business experts are aware of China’s historical impact on trade, especially its comeback over the past thirty years. China’s gains have been led by being an export-based economy providing low-cost, labor-intensive manufactured goods. China’s economy is reaching a maturation point where it must continue to evolve, not as much by investment, but by innovation as other modern economies do.
China signed a free trade agreement with the ten country Association of Southeast Asia Nations (ASEAN) that came into force on January 1, 2010. It is the largest global free trade agreement in terms of population, and third largest in GDP moving China ahead of the US in ASEAN trade. At present, China is seeking to expand this agreement with the ASEAN to include the other five large Asian countries (Japan, India, Korea, Australia, and New Zealand) by negotiating the Regional Comprehensive Economic Partnership (RCEP). If successful, the RCEP will represent an unprecedented global trading bloc and bring China on par both economically and politically with these other nations.
The modern Silk Road, also known as One Belt One Road, is an improvement venture for connectivity between China, Eurasia, Africa, and Oceania. It encompasses about sixty countries and investment of up to $8 trillion for both roads, high speed rail, sea ports, and other infrastructure.
Risk and reward abound for international trading firms and countries when it comes to positioning China into their trade strategies. A successful plan must account for, and take advantage of, the opportunity to deal with one of the worlds’ largest and growing economies while recognizing the potential for adverse and volatile change either from within or outside of China.
Cedrus Investments is a global boutique investment firm founded by Mr. Rani Tarek Jarkas more than 19 years ago. Mr. Rani Jarkas is a highly experienced and accomplished financial services executive, with over 23 years of international banking experience. Currently, Mr. Jarkas is the Chairman and CEO of Cedrus Group and its member companies worldwide.