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China Products. Be Gettin' 'Em While The Gettin' Is Good.

By Dan Harris and Steve Dickinson

So I just had an interesting conversation with a client today. This client manufactures really big things in China (sorry, I have to be so vague here) under his company's name and then sells these big things in the US. He was bragging about how good business has been for him lately. How can that be, I asked. Aren't your sales down? A little he replied. Around ten percent. Well then, why are you talking about things being so good? Dan, it's like this [recapped, not word for word]: -- The cost of the materials for my product has plunged. -- The production costs for my product have plunged. -- My VAT rebate has increased. -- I have been getting killer shipping rates. "Killer," he repeated, with obvious glee in his voice. "So yeah, sales are down a bit, but my profits are up....you still serious about gathering up a buying expedition to Iceland?' For more on the massive decline in shipping rates from China, check out, "The Impact of the Massive drop in China Shipping Rates," at the For Sale In China blog."

Full post as published by China Law Blog on November 06, 2008 (boomark / email).