Import Deal Shop

Why China?

Cheap prices, high quality.

President Richard Nixon announced to the world on July 15, 1971 that the United States that he would visit the People’s Republic of China (communist China). That announcement was fulfilled with the president’s visit to China in early 1972. 

The shock waves of normalizing relations with a communist country proved much more rational when taken into consideration the deteriorating relationship the United States had with The Soviet Union (Russia) after our former World War II allies. The Soviet Union preferred to develop relationships with communist countries rather than continue to work with America. 

President Nixon’s overtures to China culminated with a peace agreement and the normalization of relations with Taiwan. As a result of the Chinese civil War the split into the present-day democratic Republic of China (Taiwan), a self governing nation and the People’s Republic of China, a communist nation hostilities had existed between the two for decades. Nixon got mainland China to accept a peaceful settlement with Taiwan.

In 2019 goods and services with China had reached $634.8 billion. The United States exported $163 billion to China while importing $471.8 billion worth of goods and services from China. After the normalization of relations between the United States and China in the 1970s trade rapidly accelerated when China entered into the World Trade Organization in 2001. However, the United States has had a trade deficit with China since the 1980s.

Why does the United States and other western nations buy so much from China? Primarily because their products are inexpensively manufactured by an abundance of low wage workers. From Mexico, to the Tiger Countries in Southeast Asia, U.S. buyers are motivated by the low cost of items we desire to purchase.  

Recently, a Forbes contributor noted that 40% of Americans would rather not buy from China. The article continued to describe the effects of a 40% drop in the Gross Domestic Product (GDP) of our country. The empty shelves, and the increase in the cost of those items to get similar ones from more costly sources. Also what if China stopped buying from the United States? 

The tough task of holding cost down here in the U.S. or sourcing products from other places sounds reasonable but until then the buyer is “King”. The cost of items we want is what drives our purchasing decisions.

Teal Deals simply sources products and matches those items to buyers in the United States. If new sourcing providers become available we hope to ferret those out and continue to drive our sales as we meet our customers demands.