This is especially true if you are sourcing from China.
Recently the Chinese Yuan (RMB) has steadily gained in value and is at its highest point in the last 2 years.
Currently the exchange rate is approximately 6.6 CNY for $1 USD.
What does this mean?
Since the beginning of the trade war, China has been devaluing the RMB to make their products more competitive to offset the tariffs.
Now is China gradually allowing the RMB to appreciate as they gain confidence after their economy rebounded relatively quickly from the pandemic.
This means that the Chinese suppliers may adjust their prices given the currency appreciation.Furthermore with the upcoming Biden Administration, China’s leadership may sense that upcoming policies will be “less hostile” or and more predictable according to a Bloomberg article recently.
Moreover, in an informal poll I ran earlier this week on a small group of ecommerce entrepreneurs, 46% feel that the new US Administration will have a positive effect on their sourcing and supply chain.
19% felt it would have a negative effect. 11.5% felt it would have no effect. And 23% are unsure of the effect.
I’m curious - how do you think the new administration will affect your business’s sourcing and supply chain?
If you haven’t taken this short survey yet, I’d love to hear your opinion!
Please fill out this 5 min survey
Thanks and have a great weekend!