TFM welcomes this guest post from Zennon Kapron, head of KapronAsia, which provides banking, capital markets, payments and cryptocurrency market research across Asia. The volume […]
My colleague Jason Busch has written recently about if you should proactively Finance Chinese Suppliers given the Chinese devaluation and increased supplier performance risk due […]
The level of nuanced arguments surrounding China’s dual-move to a more freely floating currency, combined with an immediate devaluation – close to 5% at the time of writing this piece – has reached a fever pitch in international business circles. Aside from my own views about China’s general behavior from a business context, I personally believe it’s an ingenious move of desperation that would have been difficult to predict ahead of time.
From a sourcing perspective in terms of negotiation with suppliers over price decreases, we recently shared some advice for our subscribers on Spend Matters in a research brief, What a Devalued Chinese RMB Means For China Sourcing Strategies. But speaking more broadly than negotiating price decreases as a result of the devaluation, there is the broader question of supply risk with Chinese vendors – and the level of action companies should take to protect their supply chains through active trade financing programs.
I thought the chart produced by Standard Chartered showing just the sheer scale of China trade with some trend data puts it into perspective how […]