Experian's insight into the Chinese market

28 September 2015

The spotlight has been on China this month following the People’s Bank of China’s decision to cut interest rates. Investors have been plagued with anxiety as share prices took a slight dive and concerns grew regarding its economic stability. It sheds light on the wider issue of China’s economic slowdown, reinforced by the devaluation of their currency earlier in August. As the world’s second largest economy it will to some extent affect other parts of the world.

As it is the market that SMEs feel has the biggest potential to do business with, those considering the China market will need to weigh up the pros and cons meticulously. Although it could result in lower priced commodities and deflation in the West, we have to bear in mind the imbalance in consumption and production that contributed to the crash of 2007-2008.

If deciding to trade in China, protect yourself by conducting International credit reports to minimise your risks of being adversely affected, and make informed and calculated decisions. 

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