September 14, 2016
Importing & Exporting to China.
China isn't just one of the biggest countries on the planet, it also has enjoyed the fastest growing economy over the last decade, producing fifty percent of the world’s goods. It’s nearly impossible to consider international growth without considering China as a trading partner, especially in Canada. Aside from being a manufacturing powerhouse, China is Canada’s second largest export market, after the US. And when you take all of that into consideration, it’s easy to see why in order to grow big, you need to go big.
Offshore versus onshore currency: what’s tradable?
While the Renminbi is the official currency of the People’s Republic of China, the Yuan, abbreviated to CNY, is essentially synonymous (not unlike how British sterling and the pound both relate to British currency). What’s circulated on the mainland isn’t actually allowed to leave the country. So, another Yuan was created: the CNH offshore Yuan, which, happily, is tradeable. And while many Chinese suppliers actually accept US Dollars, it adds additional complexity on their end. Importantly, by having access to offshore or onshore Yuan, you could negotiate better pricing with suppliers.
Money doesn’t always cross the border.
So, trading with China has huge potential for your business. Great. Now what? As you’ve just found out, Chinese currency is a little more complicated. Internal currency regulations aim to prevent Renminbi from leaving home soil, so to fully realize the potential of international trade with China, you’ll need to find solutions to pay and get paid at the right rates. That’s where having a currency specialist can save you time and money.
The right advice can help your business go the right direction.
Growing globally with China in mind is a huge business opportunity. One that most small and medium sized businesses don’t take advantage of, or are too afraid to. Working with an international payment and currency specialist will give you the confidence to broaden your horizons and seek out new, rewarding business opportunities. At Firma Foreign Exchange, you’ll find everything you need to succeed in today’s global economy, getting the best advice from people who care, no matter how big or small your business is.