With so much talk about the United States outsourcing production to foreign countries like China and Mexico, there is little coverage on China’s move to the U.S. A recent article in Bloomberg Businessweek suggests Chinese companies are expanding manufacturing facilities in the U.S. and experiencing a plethora of benefits.

China’s Suntech Power Holdings has been manufacturing solar panels in an 117,000 square foot factory- not based in China, rather located on domestic turf in Goodyear, Arizona. According to the article in Bloomberg Businessweek, “Chinese companies increasingly are setting up shop in the U.S. to escape trade barriers, capitalize on the U.S. government’s alternative energy push, and learn lessons that would help them in their home market.” In addition, the high unemployment in the U.S. is a favorable factor to Chinese companies looking for U.S. workers.

Does this mean U.S. imports from China are decreasing? Not likely in the near future. In 2010, U.S. imports originating in China rose 16% over 2009 and decreased 2% over 2008. The graph below illustrates this three year trend of imports from China. Many factors, including the economic state as well as trade negotiations, will contribute to the presence of Chinese owned companies in the U.S.

 

The world’s largest cocoa producer, Ivory Coast, is halting exports of cocoa for 30 days in order to cut funds heading to the ex-president, Laurent Gbagbo, who refuses to step down. The president-elect has issued the ban and major exporters have agreed to stand with him. Supporters of the ban are widespread, but concerns mount over the impact of world cocoa prices and the economic state of the delicate nation. The line graph below illustrates the value trend of cocoa imports to the United States from the Ivory Coast.

This unexpected ban has created apprehension for cocoa importers, who are requesting softer restrictions on exports from the country. According to the Minneapolis Star Tribune, “The March contract was $28 more expensive than cocoa for May delivery, a signal that buyers are concerned that supplies for immediate delivery will be tight.” As prices rise for buyers, in turn, consumers will likely be burdened with higher prices or smaller packages. Sources predict the price of cocoa could rise as much as 10 percent; posing a large hit for buyers and consumers. The pie graph below illustrates the large impact of the Ivory Coast in U.S. cocoa imports.


The ban is also taking its toll on cocoa exporters and producers in Ivory Coast and others that depend on the cocoa sales to make a living. With pressure mounting worldwide for Gbagbo to step down from office, many are hoping that the ban will be the last push he needs.      

Zepol regularly contributes to trade publications across all industries, providing readers with ongoing import and export statistics. Here are some of Zepol’s most recent contributions:

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The U.S. Census Bureau released its Merchandise Trade data numbers on January 13th for November 2010. The Merchandise Trade balance increased 15.6% over last November and jumped 6.4% from the previous month. Imports fell 0.8% from October and gained 18.1% over last year, while exports decreased by 4.0% from the previous month and 19.4% over November 2009.

Below is an in-depth breakdown of the U.S. Census Merchandise Trade data. This month we have highlighted 5 interesting items that we found while looking at November's data; here are the highlights:

1. DVD imports losing steam with increased online streaming
2. Ramping up on food trade in the winter
3. Services portion of the economy strong
4. Wholesale prices rise, but mostly steady
5. Lock step with Canada
   

Click here for Zepol's U.S. Census Merchandise Trade Data Update for November 2010