In China, US factories usually prepaid for production. The Europeans wanted credit extended, a wish that was granted up until now. Almost all the European companies I am dealing with now need to immediately pay the cost in full prior to production and shipment of product.
Not anymore.
Some Hong Kongers just woke up the other day and realized that there is no manufacturing left in Hong Kong.
Hong Kong’s economy is actually quite complicated, but the best way to describe it is as follows:
As people begin to unfold the credit derivatives and structured products, problems are surfacing about actual commodities delivery: gold, wheat, pigs, etc. … and who really owns the products?
Furthermore, Hong Kongers may need to start moving to the mainland to find work in the factories they once owned.
It has been brought to my attention that some of my vendors cannot deliver or start orders on products because some U.S. banks are unable to settle international transfers.
In case you are having the same problem, I just wanted to let you know that others are also going through this headache. This is disturbing.
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