Wool consultant learns about China’s economy at conference
October 16, 2015
American Sheep Industry Association Wool Consultant Barry Savage attended the wool conference in Nanjing, China, recently and offered the following thoughts on the trip.
"We have seen a lot of U.S. press releases recently related to the impact that the weakening Chinese economy has had on the U.S. financial markets, and on all markets worldwide. At the Nanjing Wool Market Conference attended by U.S. wool industry and ASI representatives, the information indicated was that the Chinese economy is expected to remain relatively 'subdued' for the near future," Savage wrote.
"Labor costs have increased significantly in the last two to three years, and the significant Chinese crackdown on industry pollution has also increased production costs significantly. This, along with difficult international trading conditions, has negatively impacted Chinese exports. The Chinese domestic market has also slowed. These two factors are expected to have the Chinese economy grow at a much reduced rate of 6 to 7 percent, versus the much higher double-digit growth rates experienced until recently. As China is a major importer of U.S. wool, these conditions are, in turn expected to slow any significant growth in wool exports to China in the near future."
–American Sheep Industry