It’s no secret that political tension has been high within the United States. But has a change in administration facilitated sufficient resolution for international business deals?
As it stands, China must spend a minimum of $200 billion on American goods and services by the end of the year. The trade agreement established in January 2020 could certainly suffer from the global health crisis, as medical concerns essentially quashed international sales forecasts.
Although agricultural transactions are between 79% and 87% of goal, China was only at 73% of the stipulated target this April. Entrepreneurs may feel powerless against high-level agreements. Companies based in the U.S., however, continue vying for purchases statewide.
Made in the…how much do consumers care?
Face mask imports increased the trade gap during the pandemic, but purchasing products manufactured in China is nothing new.
Reportedly, last year 40% of American consumers said they would not purchase Chinese-manufactured goods. Data reflects aligned purchasing decisions, though it’s hard to say whether that’s primarily because of national pride or factory shutdowns overseas.
Statistics suggest anything but loyalty to American manufacturing. However, might there be a way to re-shift consumer focus?
Despite international shopping, the business world might need to adopt a significant paradigm shift to improve Western supply chains. Proposed solutions to drive competition include:
- The federal government should buy American-manufactured goods to not only encourage innovation but also provide job stability.
- Grow the Manufacturing USA program (MUSA) to increase ownership of scientific research surrounding manufacturing processes that address climate change.
- Improve opportunities for small- and medium-sized enterprises to offer higher wages by applying scientific findings to the manufacturing industry.
Whether improvements are necessary for domestic production doesn’t necessarily depend on trade agreements. Decisions made in the best interest of the American economy, though, might need more than a government mandate.