Comments on: A + B = China http://www.manufacturethis.org/2008/03/26/a-b-china/ Just another WordPress weblog Sat, 22 Nov 2008 11:47:18 +0000 http://wordpress.org/?v=2.1.2 By: Joe Erie http://www.manufacturethis.org/2008/03/26/a-b-china/#comment-17988 Joe Erie Thu, 27 Mar 2008 15:02:56 +0000 http://www.manufacturethis.org/2008/03/26/a-b-china/#comment-17988 That huge trade deficit with China is basically the same one that we've had with Asia as a whole for a long time now. China has simply consolidated the trade surplus of all of Asia into its own with the US. What do you have to say about the fact that US corporations control more than 2/3 of China's export production; that our corporations are renting China's cheap labor and keeping much of the profit? Is this China's fault? No. To blame our current demise in the manufacturing sector on "China's cheating" is entirely naive, and displays a misunderstanding of the issue. Start talking about the corporate American-influenced disintegration of international supply chains in the manufacturing sector in favor the cheapest labor costs for production, and then you are actually beginning to see the larger, clearer picture. That huge trade deficit with China is basically the same one that we’ve had with Asia as a whole for a long time now. China has simply consolidated the trade surplus of all of Asia into its own with the US.

What do you have to say about the fact that US corporations control more than 2/3 of China’s export production; that our corporations are renting China’s cheap labor and keeping much of the profit?

Is this China’s fault? No. To blame our current demise in the manufacturing sector on “China’s cheating” is entirely naive, and displays a misunderstanding of the issue.

Start talking about the corporate American-influenced disintegration of international supply chains in the manufacturing sector in favor the cheapest labor costs for production, and then you are actually beginning to see the larger, clearer picture.

]]> By: Pete Murphy http://www.manufacturethis.org/2008/03/26/a-b-china/#comment-18056 Pete Murphy Fri, 28 Mar 2008 00:42:49 +0000 http://www.manufacturethis.org/2008/03/26/a-b-china/#comment-18056 Joe, I agree. The fault lies with our own trade policies. The U.S. must take actions that are within our control to effect the desired results, and stop cajoling our tade "partners" to play nice. It's time to take a step back from free trade. It's time to consider whether the economic theory upon which it's based - Ricardo's principle of comparative advantage - may be overly simplistic and flawed. We can't keep doing the same things we've been doing for decades and expect any different results. Trade is fine. I don't care if we import everything that we consume, as long as the rest of the world buys an equal amount from us. The key is balance. It's absolutely critical that the U.S. take action to restore a balance of trade. Pete Murphy Author, Five Short Blasts Joe, I agree. The fault lies with our own trade policies. The U.S. must take actions that are within our control to effect the desired results, and stop cajoling our tade “partners” to play nice.

It’s time to take a step back from free trade. It’s time to consider whether the economic theory upon which it’s based - Ricardo’s principle of comparative advantage - may be overly simplistic and flawed. We can’t keep doing the same things we’ve been doing for decades and expect any different results.

Trade is fine. I don’t care if we import everything that we consume, as long as the rest of the world buys an equal amount from us. The key is balance. It’s absolutely critical that the U.S. take action to restore a balance of trade.

Pete Murphy
Author, Five Short Blasts

]]> By: George Carty http://www.manufacturethis.org/2008/03/26/a-b-china/#comment-18837 George Carty Thu, 03 Apr 2008 12:29:35 +0000 http://www.manufacturethis.org/2008/03/26/a-b-china/#comment-18837 Isn't it clear why America can't compete with China given that the exchange rate is about 8 yuan per dollar, when those 8 yuan in China will buy as much as $32 in the United States? Isn’t it clear why America can’t compete with China given that the exchange rate is about 8 yuan per dollar, when those 8 yuan in China will buy as much as $32 in the United States?

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