The Risk
- Global Sourcing Reality:
Few products today are made with 100% U.S. components. Tariffs on foreign content raise costs, sparking pushback from international customers.
- China’s Surge:
With a record $1.2 trillion trade surplus, China is rapidly shifting away from U.S. demand toward other international markets.
- India:
Imports from China reached all-time highs in August.
- Latin America:
Monthly exports have tripled in recent years, nearing $300 billion. - Global Trend:
Nearly all regions—except developed North Asia—are increasing Chinese imports (Bloomberg).Implication:
Chinese exporters are securing new markets that threaten your international share.
Strategic Options
- Accelerate Mexican Market Entry
Mexico has imposed tariffs of up to 50% on Chinese goods, opening opportunities for U.S. exporters.
- Explore Anti-Dumping Measures
India filed 50+ anti-dumping cases against Chinese products in recent weeks.
A slower, bureaucratic path—but useful for protecting specific product categories.
- Monetize Intellectual Property (IP)
Your brand and IP can be your strongest weapon.
By licensing to foreign distributors or Chinese manufacturers, you lower costs and still capture profit via fees.
Benefits:
No freight, duties, or inventory costs
Minimal staff requirements
Revenue stream secured by legal agreements
Licensing Model in Action
- Step 1: Identify reliable partners in target markets.
- Step 2: Grant them the right to manufacture or distribute under your brand, with strict quality and brand protections.
- Step 3: Expand licensing as performance proves reliable.
Result: Sustainable profits from licensing fees, with minimal capital investment and risk.
Call to Action
- Act now to protect international market share.
- Prioritize Mexico as a near-term growth market.
- Use IP licensing to create recurring revenue streams with limited investment.
- Consider anti-dumping petitions where appropriate.
Your intellectual property can be converted into a powerful, low-risk revenue engine—far healthier than watching your market share erode to Chinese competitors.