Comments on: Brief AAM comment– $62.2 billion trade deficit in July http://www.manufacturethis.org/2008/09/11/brief-aam-comment-622-billion-trade-deficit-in-july/ Just another WordPress weblog Fri, 09 Jan 2009 14:26:16 +0000 http://wordpress.org/?v=2.1.2 By: Dan Luria http://www.manufacturethis.org/2008/09/11/brief-aam-comment-622-billion-trade-deficit-in-july/#comment-58601 Dan Luria Thu, 11 Sep 2008 15:14:52 +0000 http://www.manufacturethis.org/2008/09/11/brief-aam-comment-622-billion-trade-deficit-in-july/#comment-58601 I appreciate your AAM releases. However, in this case, you act as if the cause of thge bilatreral imbalance with China is exclusively the actions of its government, and not the fact that US-based multinationals actively campaign to help Beijing remain a cheap-currency export platform. I appreciate your AAM releases.

However, in this case, you act as if the cause of thge bilatreral
imbalance with China is exclusively the actions of its government, and
not the fact that US-based multinationals actively campaign to help
Beijing remain a cheap-currency export platform.

]]> By: David M. Selman http://www.manufacturethis.org/2008/09/11/brief-aam-comment-622-billion-trade-deficit-in-july/#comment-58759 David M. Selman Thu, 11 Sep 2008 20:20:30 +0000 http://www.manufacturethis.org/2008/09/11/brief-aam-comment-622-billion-trade-deficit-in-july/#comment-58759 I saw a comment by Scott Paul of your organization regarding the value of the Chinese currency. He thinks it is overvalued by 40%. He might be right, but I have a larger problem with China as a small exporter. I export various American made products to foundries in China making golf heads. The foundries are owned by the Taiwanese, but they are located in southern China. One product I export, alumina crucibles made by Engineered Ceramics in Gilberts, Illinois, faces a VAT and duty imposed by the Chinese government that totals about 35%. They don’t even make this type of product in China. This illegal duty severely limits the number of crucibles I can sell to these foundries. I have complained to the US Commerce Department, but they are more interested in keeping Walmart, Target, Costco, Home Depot, etc. shelves stocked with Chinese made junk than in helping US exporters do business in China. Yours, David Selman, Kimberlite, Inc. I saw a comment by Scott Paul of your organization regarding the value of the Chinese currency. He thinks it is overvalued by 40%. He might be right, but I have a larger problem with China as a small exporter.

I export various American made products to foundries in China making golf heads. The foundries are owned by the Taiwanese, but they are located in southern China.

One product I export, alumina crucibles made by Engineered Ceramics in Gilberts, Illinois, faces a VAT and duty imposed by the Chinese government that totals about 35%.

They don’t even make this type of product in China. This illegal duty severely limits the number of crucibles I can sell to these foundries.

I have complained to the US Commerce Department, but they are more interested in keeping Walmart, Target, Costco, Home Depot, etc. shelves stocked with Chinese made junk than in helping US exporters do business in China.

Yours,

David Selman, Kimberlite, Inc.

]]> By: Michael J. Riley http://www.manufacturethis.org/2008/09/11/brief-aam-comment-622-billion-trade-deficit-in-july/#comment-58807 Michael J. Riley Thu, 11 Sep 2008 21:53:27 +0000 http://www.manufacturethis.org/2008/09/11/brief-aam-comment-622-billion-trade-deficit-in-july/#comment-58807 Thank you for your tireless efforts and hard work covering the China Syndrome. While I agree with you and 100% support your cause, one significant factor you appear to be missing entirely is the fact that China now owns such a significant portion of U.S. debt that they, in effect, often dictate how our government responds to many policy issues – to the point of influencing our interest rates and other monetary policies. The truth is, those who control currency decisions literally control everything else. If AAM is going to continue this coverage, then expand it to fully expose our current limitations – which have been created by our own government. Mike Riley Editor Fabricating & Metalworking Magazine Thank you for your tireless efforts and hard work covering the China Syndrome.

While I agree with you and 100% support your cause, one significant factor you appear to be missing entirely is the fact that China now owns such a significant portion of U.S. debt that they, in effect, often dictate how our government responds to many policy issues – to the point of influencing our interest rates and other monetary policies.

The truth is, those who control currency decisions literally control everything else.

If AAM is going to continue this coverage, then expand it to fully expose our current limitations – which have been created by our own government.

Mike Riley
Editor
Fabricating & Metalworking Magazine

]]> By: Scott Paul http://www.manufacturethis.org/2008/09/11/brief-aam-comment-622-billion-trade-deficit-in-july/#comment-59286 Scott Paul Fri, 12 Sep 2008 12:58:49 +0000 http://www.manufacturethis.org/2008/09/11/brief-aam-comment-622-billion-trade-deficit-in-july/#comment-59286 I want to thank Dan, David, and Michael for their comments, and to say that I agree with all three of them. Dan is correct in saying that some U.S. multinationals actively pursue offshore production and benefit from currency misalignment. They are also part of the problem. David rightly notes the impact of our tax system...both the U.S. system that doesn't necessarily promote exports and the Chinese system which penalizes imports from the U.S. We talk about tax policy from time to time, and David's comment is a good reminder that this angle needs to be pursued. Finally, Michael sheds some light on one of the consequences of our imbalanced trade relationship with China: $1.8 trillion in foreign currency reserves are now held by Beijing, a number that is growing every day. China is a major buyer of U.S. debt. In essence, we buy from China, and then we borrow from China to buy more from China. Put simply, this is unsustainable. The question is, when will we see action from Washington? Many thanks to all of you, Scott Paul I want to thank Dan, David, and Michael for their comments, and to say that I agree with all three of them. Dan is correct in saying that some U.S. multinationals actively pursue offshore production and benefit from currency misalignment. They are also part of the problem. David rightly notes the impact of our tax system…both the U.S. system that doesn’t necessarily promote exports and the Chinese system which penalizes imports from the U.S. We talk about tax policy from time to time, and David’s comment is a good reminder that this angle needs to be pursued. Finally, Michael sheds some light on one of the consequences of our imbalanced trade relationship with China: $1.8 trillion in foreign currency reserves are now held by Beijing, a number that is growing every day. China is a major buyer of U.S. debt. In essence, we buy from China, and then we borrow from China to buy more from China. Put simply, this is unsustainable. The question is, when will we see action from Washington?

Many thanks to all of you,

Scott Paul

]]> By: Blueneck http://www.manufacturethis.org/2008/09/11/brief-aam-comment-622-billion-trade-deficit-in-july/#comment-59453 Blueneck Fri, 12 Sep 2008 17:39:22 +0000 http://www.manufacturethis.org/2008/09/11/brief-aam-comment-622-billion-trade-deficit-in-july/#comment-59453 I work for a manufacturer of automation components. When we try to sell our products in Asia the landed cost is nearly double what we sell for domestically after all the VATS customs etc. But on the flipside, chinese knockoff products come here and are sold at prices less than we can even buy the material for. How is the "free" trade? I work for a manufacturer of automation components.

When we try to sell our products in Asia the landed cost is nearly double what we sell for domestically after all the VATS customs etc.

But on the flipside, chinese knockoff products come here and are sold at prices less than we can even buy the material for.

How is the “free” trade?

]]> By: Bob Hall http://www.manufacturethis.org/2008/09/11/brief-aam-comment-622-billion-trade-deficit-in-july/#comment-59486 Bob Hall Fri, 12 Sep 2008 18:35:55 +0000 http://www.manufacturethis.org/2008/09/11/brief-aam-comment-622-billion-trade-deficit-in-july/#comment-59486 Sounds like a good time to plug my YouTube video "Dollar to the Giant": http://www.youtube.com/watch?v=TUj8leZxmK8 Neither multinationals nor our own government (another multinational) will help us. We the American People have to start saying "no" to Chinese imports. Next time you go shopping and have an opportunity to vote for "Made in China" at the cash register. . . Don't. Anything you can do to help spread the word about "Dollar to the Giant" can help each and every one of us--our kids most of all. Thank you. Sounds like a good time to plug my YouTube video “Dollar to the Giant”:

http://www.youtube.com/watch?v=TUj8leZxmK8

Neither multinationals nor our own government (another multinational) will help us.

We the American People have to start saying “no” to Chinese imports.

Next time you go shopping and have an opportunity to vote for “Made in China” at the cash register. . .

Don’t.

Anything you can do to help spread the word about “Dollar to the Giant” can help each and every one of us–our kids most of all.

Thank you.

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