One of the most puzzling aspects of the debate on U.S. trade with China is the absence of any reference to the balance of payments. The focus has been and continues to be on the current and trading accounts and the U.S. deficits on those accounts. Firstly, it is unclear why we should be worried that China is willing to accept entries in a ledger in exchange for tangible goods. Secondly, the focus on merchandise trade and services means not seeing the forest for the trees. The trade deficit must be balanced by a surplus in other balance of payment accounts. For every Chinese widget an American consumer buys, China gets U.S. dollars, most of which find their way into U.S. Treasuries, but they are increasingly finding their way into other asset classes. Facilitating that process and assisting Chinese companies to invest directly in the U.S. is CD International Enterprises, Inc. (OTC: CDII), a U.S.-based company that sources industrial commodities and provides business and management corporate consulting services.
The current account, which includes the merchandise trade account, is just one of three major accounts that make up the overall balance of payments, so called because it is an accounting device, which, like a balance sheet, is meant to balance. Apart from the current account, the balance of payments includes the capital account and the financial account. Transactions in the current account are offset by balancing transactions in either the capital account or financial account. This means that Americans are buying Chinese goods on current account, while Chinese are buying American assets on the capital and financial accounts.
Those dollars leaving American shores have been finding their way back. Earlier this year, the Financial Times reported a surge in Chinese corporate investment into the U.S. (http://dtn.fm/rS1M6), writing that ‘Chinese companies invested a record $45.6 billion in the U.S. in 2016’. This was three times as much as the Chinese direct investment in 2015. Now, China’s long-term investment in U.S. physical assets exceeds $100 billion for the first time, taking employment by Chinese-owned U.S. companies to about 100,000.
CD International Enterprises is part of that direct investment nexus. The company is geared to provide advice to Chinese entities on the U.S. capital markets, cross-border transactions, Sino-American joint venture structure, foreign invested entity structure, mergers and acquisitions and divestitures. CD International will also undertake screening and due diligence of potential acquisition targets for Chinese corporate buyers.
The consulting services it offers comprise just one division of CD International. The company also trades commodities through its wholly owned subsidiary CDII Minerals, Inc., which sources, aggregates, and distributes iron ore, manganese ore, and scrap metal for companies in the People’s Republic of China.
In April, CD International announced the launch of its newly formed, wholly owned subsidiary, Green Products Distribution, Inc., and the associated online store Green CBD Products (http://dtn.fm/rr8kC), aimed at the Chinese-speaking diaspora.
The launch of Green Products Distribution and the associated online store is a key part of the company’s expansion plans. With this launch, CD International’s chief objective is to retail CBD-based products to Chinese-speaking communities, which collectively represent a global market of over two billion people. After getting the online store up and running within the next several weeks, the company plans to contract an online marketing firm to promote the online store and its products in Chinese-speaking communities across the world. Other plans under consideration by CD International include developing a mobile app for optimal distribution of CBD-based products through mobile devices and the bulk distribution of cannabidiol (CBD) crystal in the U.S.
The company has also entered into a partnership agent sales agreement with NutraFuels, Inc. (OTC: NTFU), a manufacturer and distributor of naturally derived, liquid-based health and wellness nutraceutical products. Under the terms of the agreement, CD International will market NutraFuels’ available product lines to the global Chinese-speaking population. These include five unique oral spray daily health and wellness products containing industrial hemp-based CBD. These supplements have been shown to support various daily health and wellness goals, including weight loss, stress relief, improved energy and focus, better sleep and lasting pain relief.
For more information, visit the company’s website at www.CDII.net
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