General Motors has posted a decent increase in sales to China in the last month. Kevin Den Adel explains the reason behind the increase and what it can mean for both countries’ economies.
U.S. automobile manufacturer General Motors has announced a 14.3 percent increase in sales to China over the month of October. Direct competitor, Ford, also saw an increase in sales to the country as well. Part of the reason for the increase comes on the foreign policy front as China and Japan dispute the ownership of some neighboring islands. This has led to a boycott in trade with Japan.
Kevin Den Adel says that General Motors sold over 200,000 vehicles between GM brand vehicles and its subsidiaries. Ford has seen success in China with the sale of the Ford Focus, as well as other famous Ford vehicles in the current lineup. Ford has been aggressively trying to gain favor in what is now the world’s largest consumer base, after China began to ease its grip on businesses.
American businesses have started to make a splash in the Chinese economy after the government started to allow McDonald’s and Starbucks to build stores in the major cities. The West saw it as an acceptance of some capitalism in an otherwise communist country. Ford’s line of vehicles has been expanding as fast as their presence in China. Plans to release a renamed version of the Escape and EcoSport would be introduced in the next few months as fun, fuel-efficient, safe vehicles for a newer China.
The United States’ economic and political relationship with China began in the 1970’s after President Richard Nixon visited the nation. As Kevin Den Adel can attest, it was the first time a United States president had visited the nation since it had become the Peoples Republic of China. The two countries had distanced themselves for 25 years, as the United States would only officially recognize the Republic of China (Taiwan) as the real China before. Some of the benefits of the visit for the U.S. included a move by China to side more with the United States rather than the Soviet Union during the Cold War. This was seen as a turning point in the Cold War.
Kevin Den Adel is a professional accountant who is also a college professor in the same field. He keeps up to date on the economic climate regularly.