China's New Economic Change &Nbsp; American Purse Big Pumping

In the more than 10 years since the early 90s of last century, cheap labor in developing countries such as China has produced a large number of low priced goods, which has lowered the US inflation rate and made the US Federal Reserve Committee have the conditions for long-term implementation.

However, as all kinds of overseas manufactured goods show higher prices on the US shelves, the "old era" of American consumers enjoying cheap commodities is coming to an end.

The price of imported crude oil in the United States has changed for twenty years, rising 8% in the past two years.

The US government has been calling for appreciation of the renminbi.

According to the 21 day data from the Wall Street journal, the renminbi appreciated by 28% against the US dollar in the past 6 years.

It is reported that the weaker dollar does help American exporters, but the stronger yuan and higher domestic production costs have led to higher commodity prices for American consumers.

The above changes

One of the reasons is the rise in cotton prices. On the other hand, the labor costs and pportation costs of the Chinese foundry factories and the appreciation of the renminbi and other factors are prompting manufacturers and retailers to raise prices.

The Federation of clothing, footwear and footwear industry estimates that the price of imported footwear and footwear will rise 4% to 6% over the same period this year.

Kevin Burke, President of the association, said that the price of clothing, footwear and socks is relatively lower than that of other retail products.

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With the increasing trend of population aging in China, the proportion of the population entering the labor market is shrinking.

According to the latest census data, the proportion of people under 14 years of age in China is 16.6%, compared with 27.69% in 1990.

Pedersen, an economist at the Institute of international economics of the, believes that increased labour productivity helps ease the slowdown in labor growth.

The International Monetary Fund predicts that the productivity of China's export industry will grow at an average annual rate of 9.3% from 2000 to 2008, far exceeding the level of 2.3% of its trading partners.

Nevertheless, the US brand is ahead of schedule, adjusting ahead of the changing labor cost territory.

Over the past few years, american apparel manufacturers have been moving to lower labor costs, and this trend has become more evident recently.

Steve Madden, a shoemaking company, is seeking to move the factory from the south to the north and Mexico.

The company has raised the price of its products and is expected to rise by 5% to 8% a year.

Bernard Lefell, CEO of SG Footwear Company, said: "people who have the right to speak have changed.

Retailers used to ask for lower prices, and sellers like us sell prices down to manufacturers, and manufacturers usually struggle to do so.

Now, the whole thing is reversed, and eventually the American consumers will pay for it. "

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The rising prices of imported clothing and other products may make the Federal Reserve struggling even in the process of stimulating economic recovery.

The latest data show that the US economy is weak, and the overall inflation rate is unlikely to repeat the momentum of the 70s surge.

Fed officials are comfortable with the current inflation level and continue to maintain ultra-low interest rates close to zero.

However, they hesitated about whether to take further easing measures, as inflation began to pick up.

Dallas Fed President Richard Fisher said in a media interview this month that the "inflation pulse" from abroad requires the fed to "be vigilant."

The US consumer price index rose 3.6% in the year to May, exceeding the 2% inflation target of the Federal Reserve.

Ben Bernanke, chairman of the Federal Reserve, blamed the rise in oil prices for short-term inflation.

But inflationary pressures also come from other sources.

According to figures from the US Department of Commerce, China provides 78% of the imported footwear products, 71% ties and 55% gloves to the United States, about 50% of women's and baby's clothing, and 90% of household slippers.