Chinese Real Estate Bubble
UNIVERSITYOF LA VERNE
La Verne, CA
Issue Related to A Progress Report
Prepared for
BUS 500J Found of Business Communication
Prepared by Xinghan.Wang
May 15, 2013
College of Business and Public Management
Department of Business Administration
Introduction
There is no doubt that chinese real estate bubble has an effect on global economy. Construction can not do without building materials. Therefore, global building materials markets may be influenced by this real estate bubble. As a export revenue of building materials, U.S. will not avoid this. I will give a report to show my progress about impacts of chinese real estate bubble to U.S. building materials export market.
Background
According to Halstead (2012), in 2004, China surpassed Mexico and became the third-largest export market for U.S. wood product. As we see, china is an very important market for building materials export of U.S. Due to America’s moribund housing market, doemstic demand for logs and metals decline continuely. Meanwhile, raw materials export plays an important part in some states, such as Oregon. In 2010 low domestic demand for logs combined with increased international demand drove log exports higher (Lettman, 2013). Thus, America have to explore the internetional market to promote development of domestic economy. However, chinese real estate bubble may make much instability and unprediction for these exports. According to Lettman (2013), although still well below historic highs reached in the 1980s, were a key driver in Oregon’s 2011 log market, but they subsequently declined in 2012.
Several criterias
Government actions
Chinese government have taken many measures to control the real estate, and the investment for housing market have slowed down. Accordint to Luhby (2012), the Chinese government, concerned by the steep run-up in prices and residents' frustration with the lack of affordable housing, stepped in in 2010 with measures to rein in speculator.
La Verne, CA
Issue Related to A Progress Report
Prepared for
BUS 500J Found of Business Communication
Prepared by Xinghan.Wang
May 15, 2013
College of Business and Public Management
Department of Business Administration
Introduction
There is no doubt that chinese real estate bubble has an effect on global economy. Construction can not do without building materials. Therefore, global building materials markets may be influenced by this real estate bubble. As a export revenue of building materials, U.S. will not avoid this. I will give a report to show my progress about impacts of chinese real estate bubble to U.S. building materials export market.
Background
According to Halstead (2012), in 2004, China surpassed Mexico and became the third-largest export market for U.S. wood product. As we see, china is an very important market for building materials export of U.S. Due to America’s moribund housing market, doemstic demand for logs and metals decline continuely. Meanwhile, raw materials export plays an important part in some states, such as Oregon. In 2010 low domestic demand for logs combined with increased international demand drove log exports higher (Lettman, 2013). Thus, America have to explore the internetional market to promote development of domestic economy. However, chinese real estate bubble may make much instability and unprediction for these exports. According to Lettman (2013), although still well below historic highs reached in the 1980s, were a key driver in Oregon’s 2011 log market, but they subsequently declined in 2012.
Several criterias
Government actions
Chinese government have taken many measures to control the real estate, and the investment for housing market have slowed down. Accordint to Luhby (2012), the Chinese government, concerned by the steep run-up in prices and residents' frustration with the lack of affordable housing, stepped in in 2010 with measures to rein in speculator.