Reading China's Economic Signals

Oct 21, 2013

Mark Denzler of the Illinois Manufacturers Association

American manufacturers are closely watching economic news out of China, which is reassessing some of its key policies.

Despite an economic rebound in the third quarter, China is still focused on shifting from an export-driven growth model toward one that is led more by domestic demand. Mark Denzler is with the Illinois Manufacturers Association. He says whether or not that's good for American companies largely depends on trade tactics.

“As long as China continues to allow American products into their country, we think we stand on good footing,” Denzler said.

But Denzler says any trade restrictions could create problems for American manufacturers. He points to other U.S. economic sectors, including steel, which have been affected by such policies from China.

Meanwhile, Denzler says they continue to see positive signs when it comes to the so-called “re-shoring” of U.S. jobs.

“The inflation in China has increased wages over there, so the competitiveness in terms of paying lower wages to the Chinese worker no longer exists for them,’ Denzler said.

Denzler also says transportation and energy costs have forced companies to reconsider sending jobs to other parts of the globe. Still, other observers say the U.S. has a long way to go to bring back a lot of those jobs.