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China's economy is growing at its slowest pace in three years -- frank -- says China is still growing at a rate above seven and a half percent that's enough.
For US companies out there to do well frank is the former US undersecretary of commerce for national trade and the CEO of export now and it's always a pleasure -- frank.
Great to see again thanks for coming and -- -- so so what do you think it did all these reports about the China's slowdown.
It's true that China is sag growing up less than its pay grade but still it's going to be very healthy 7% an important -- -- David is if the economy growing at 7%.
Consumer spending is probably growing at 30% or so.
-- right now when I hear numbers I know we -- that as much as you deal with -- that the Chinese Government you've got to be skeptical of these numbers when you hear the right.
Well I think it is very hard to you get.
Precision in these numbers but we know there's a lot of good news the consumer space when.
Yeah -- announces that it just opened its fourth thousands.
KFC restaurant in China wants Starbucks says that China will be its second largest market after the US when.
Great companies like -- -- you're getting 30% growth rates.
We know there's a lot of good news in the consumer products sector China OK what we do -- we do know that good news but there's also some some other news is coming out in of course federal express.
Telegraphed that a couple weeks ago when Fred Smith came out gave.
FedEx is not just a neutral observer there in China they spend a lot of money in China -- their infrastructure their transportation hub there.
And when he says and I'm gonna -- right now I've been somewhat abused.
Watching some of the China observers I think completely underestimate the effects of the slower exports on the overall China -- kind of -- Doesn't that give you a little bit of -- -- Look I think that there's.
No question all my mind there's a slowdown underway.
But I think there are also with the same point it's China's well in the positive zone so I know I've not been brought a -- any analyst says -- not gonna have respectable number 7%.
Now that might have social repercussions might cause other problems for trying to because that's off peak they were ten or 11% just two or three years ago but from our perspective US.
Somebody you can -- 7% growth is doing a pretty good job.
OK now how do you get into the market period assuming that the internal demand is gonna continue to grow because.
It's not that they're not only reliant on what happened on the Europeans and Americans buy their products they do have.
A growing internal demand as as the people get richer in the economy gets a little freer how -- how to why it's a US company get into selling to the Chinese.
What what -- -- David is that China is the most e-commerce intensive country in the world that more consumers look -- e-commerce further every -- needs in China than any other country in the world.
So it has the largest e-commerce platforms in the best delivery systems collection systems and so forth.
So our main way -- help US companies is we just get them on those e-commerce.
Platforms and put them up on.
Web page -- -- last mile delivery we do collections -- -- for them so any US company.
Can sell for e-commerce on China without ever having to go to China.
What does sell well in China among the Chinese what kind of goods what kind of services.
Well I'll world in the consumer space and I can tell you this there's an enormous preference for US food and wine those -- premium products -- those of her -- -- -- products.
Household items everyday items that you might find in your kitchen -- Baby equipment.
Huge preference for those even pet supplies.
Automotive accessories C there's a booming middle class in China and -- and -- -- -- consumer becomes more affluent.
No surprise that they want some of the great stuff -- US companies may particularly on the high end it sounds like write like that that did Tiffany style stuff.
Well insurer or or think of -- to think of Starbucks David the affordable -- it's not necessarily an ultra luxury good.
But look it's it's pricey product but -- something you can buy back on so that's how a lot of US products are perceived in China to that's out Nike and Levi's.
Most of the companies we work with our and that's -- than -- premium if not if not really luxury.
And frank has a track record Goodwin frank Levin -- getting US companies into China export thousand at a company good to see if frank thanks alike say.