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China’s 3rd Plenum and President Xi’s New Powers

China is becoming more intriguing all the time because as it moves towards a stronger capitalistic economy, the government is apparently consolidating power in their President’s position.  This could be seen as a move for more centralized power, or alternatively an attempt at copying the US’s system and the President’s powers in the US.  It is no secret that the Chinese have modeled many of their systems, roads, infrastructure projects, etc. after the US.  The Chinese feel the US has been tremendously successful and there is no reason to copy any other (however, its only my opinion, but they may want to pass on copying our health care system and retirement system).

In simple terms, what did this Third (3rd) Plenum achieve… the top line statement given after the meeting was that China’s leadership would make more decisive movements toward a free market system, while maintaining a firm central state grip on the overall picture…not sure about you but I am confused.  However, in contrast to the past 2 Chinese President’s,  the 3rd Plenum did appear to have granted President Xi the following new powers:

1.  Control over Military, Foreign Affairs, Intelligence, and Economic Officials (not quite like the US Reserve model)

2. Creation of a National Security Council

3. Control over most of Domestic Security issues

4. Control Foreign Defense without Leadership approval

There are many similarities to the US…too many to comment on but this is probably a good thing as having a President with too little power can create more problems and frustrations so another ally that is aligned with our business interests can only be a good thing for the overall future for both countries and the world.

by Stephen Perl, MS, MBA

Author of “Dancing with the Dragon: Doing Business with China (2012)

China’s Social Stability is the World’s Problem….

Many think that the social issues and welfare of China are the sole problems of China…in fact, I would argue just the opposite.  China’s social stability is directly tied to “global growth” and stability.  How can this be?

China’s top down approach to capitalism where the state manages the countries economy in a capitalistic format has worked well for many years, but there have been disruptions.  Many only see the strong GDP numbers from the financial markets and the new projects that China is developing from the media, but underneath is still a developing country as they are part of the BRIC countries.  The BRIC states have amazing potential, but they are still developing and struggling with the many issues of growth and capitalism.

What happened to China’s economy in 1989 in Beijing when Tianemen Square revolt occurred?  The Chinese GDP plunged to 2.5% for two years…thank goodness their economy was not nearly as big then.  The consumption power that China now wields is tremendous and if there is social social unrest, it will bring this economy to its knees and hobble many others.  Even the US will feel the effect.

It is important that the US guides its partners in the right direction, but only gradually.  We cannot expect a baby to walk before it crawls so we cannot expect China to jump before it can run.

Currently, China’s economy is slowing down and maturing gradually…we should not be worried as this is normal for all maturing economies, but we must foster the right economic policies and social standards for their country.  This requires Americans to step out of their comfort zone and to practice cultural sensitivity (to the right degree…so please do not take my advice out of context).

Keeping the social stability in China is a matter that the world must be concerned with.


by Stephen Perl, MBA, MS

CEO of PMF Bancorp

Author: Dancing with the Dragon (2012)

US-China Trade Promotion Event at the LA Hotel on Oct 14, 2013

US-China Trade Event at the LA Hotel Oct 14th

On October 14th, 2013, PMF Bancorp participated in the U.S.-China Trade Event at the LA Hotel in Downtown Los Angeles to promote California and China trade. The Vice Minister of Commerce of China Mr. Wang, Supervisor Michael Antonovitch, and LA Mayor Eric Garcetti all spoke on the value of increasing trade and the meaningful economic stimulus that it brings to our Southern California region. Mr. Stephen Perl, CEO of 1st PMF Bancorp discussed trade finance as a tool for small business to increase trade with Supervisor Michael Antonovitch while also discussing 1st PMF Bancorp’s support for up coming trade mission.

Supervisor Michael Antonovitch & Stephen Perl, CEO 1st PMF Bancorp discuss PMF Bancorp trade financing as a way to grow trade with China & US.US-China Trade Event at the LA Hotel Oct 14th

Factoring and the Modern American Dream: An Introduction to an Ongoing Series of Success Stories

Financing the Modern American Dream

Financing the Modern American Dream

In modern America where credit is tight and bank loans are harder and harder to obtain, factoring and accounts receivable financing has become one of the key engines of the American dream. What is the American dream? According to Wikipedia, the American Dream is the promise of the possibility of prosperity and the freedom for everyone to achieve success in the United States. James Truslow Adams defined the American dream in 1931 when he wrote that: “life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement.”

Since the end of World War II, the American economy expanded and showed few signs of letting up. The growth in the standard of living in the United States has been fueled by the desire of many to attain the American dream. In the early part of this century, this dream began to crumble as the economy slowed, housing prices tumbled and unemployment invaded all areas of the country. With the bank crisis and the failure of major Wall Street brokerage houses, it became more and more difficult for businesses to borrow money in order to grow and get the economy back on track.

Luckily, factoring companies like PMF Bancorp have stepped up over the last several decades to save the day and help American businesses find alternative means of financing and funding. By providing invoice factoring, asset based financing, and import-export trade financing. PMF also offers extensive credit services to help its clients make the right credit decisions to set credit limits and monitor companies with marginal credit. PMF’s credit services also provide insurance against customers defaulting on their invoice payments. This protective service is referred to as credit insurance.

Financing Business Success

Opening Doors And Financing Business Success

PMF Bancorp’s credit insurance program can be used to insure repayment on American companies as well as mitigating cross boarder sales with foreign companies. The sales generated by U.S. corporations are derived in majority now by sales to foreign companies.  By offering such a variety of workable credit and financial solutions, PMF Bancorp is an essential part of the ongoing revival of the American dream, especially for the smaller companies that do not have sophisticated credit departments to sell abroad.

If an American business owner wants to grow a successful business, shouldn’t they be given the opportunity to achieve a new level of prosperity? Credit scores and ratings have come to dominate the American business market to the point that viable and worthy businesses are unable to find financing because of a past mistake or a bad year during the recent crisis. It does not seem right that an economic downturn should result in handcuffs being placed on the ongoing innovation and realization of the American dream.

Founding Fathers of Financial Freedom

The Founding Fathers Fostered Financial Freedom

By offering ways of financing that focus on what is happening with a company in the present (actual inventory and invoices and accounts), PMF Bancorp breathes essential life into the heart of the American dream. If your company needs help through access to alternative forms of financing, contact PMF Bancorp. We know that we can help take your business to the next plateau of achievable profit and productivity.

In this ongoing series on the revitalization of the American dream, every month we will tell a true story of an American company that PMF Bancorp has helped to finance. Since PMF Bancorp always respects the privacy of our clients, all of these stories will be told anonymously. By becoming a one-stop shop for a variety of beneficial financial and management services, PMF Bancorp helps our clients to realize their true potential. By relaying these success stories that reflect the best of the American dream, PMF Bancorp is able to express the pride in what we do both in terms of intrinsic value and real financial sense.