Author: tenderloin

Trump needs to be scared & intimidated; Banning of a US company set example   [Copy link] 中文

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Post time 2018-3-22 10:19:47 |Display all floors
Boston101 Post time: 2018-3-22 07:55
The EU is complaining about the same Chinese trade violations that the US is complaining about.

Can you solve any trade problems due to own inferior competitiveness simply by blaming your competitors for wotever reasons which are easy to make up? Why don't you simply make products cheaper and better.

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Post time 2018-3-22 13:20:31 |Display all floors
Some comments by readers of Wall Street Journal - today

Yes it's time for the USA business to think strategically in the long term and start diversifying their  international portfolios away from China.  Without such an adjustment China's economic dominance will be irresistible. (Robert Smith)

But I am confused - American farmers wanted Trump as president? America's number one export is ag products and so the producers of these products are going to be penalized for voting for Trump. Also the president's immigration policy has not helped farmers who need migrant workers.  (Michael Stephens)

Can anyone point to an overarching competitiveness strategy? America's economy is burdened by decrepit infrastructure, costing $600 billion annually; America's economy is burdened by hideously expensive healthcare,, eating more than 18% of GDP (that was basically true before the ACA), 7% to 10% more than any other advanced economy spends (America is thus at a huge competitive cost disadvantage).  

America has fallen from #1 in workforce quality to near the bottom (or at the bottom) of the OECD nations.  We have eviscerated public sector R&D by 60% of the last couple of decades, depriving the private sector of that critical flow of fundamental scientific breakthroughs and innovations on which it draws to commercial goods and services. Private sector R&D has grown--but it largely focuses on short-term commercialization.  South Korea, Japan, and others now spend significantly more relative to GDP on R&D than America.

There is nothing on the table to make America competitive again. Nothing.   

@Jeff Boone You ignore the huge progress China has made in developing its own capabilities.  China now houses the world's fastest computer--built entirely with Chinese chipsets.  China is pouring billions into advanced research institutes and research universities; it is already ahead of the U.S. in seems in solar panel technology, wind turbines, and high speed trains.  It is rapidly becoming competitive in AI.  China has identified the ten crucial technologies of tomorrow--and intends to dominate all of them on the basis of its own research network.

And what is America doing?  Cutting public sector R&D, letting our infrastructure decay, and ignoring our ill-prepared workforce.  We are choosing not to compete; its not clear we will have much IP of interest to anyone within a few years.  Sad.
(Fred Carstensen)

Countries should not impose tariffs on their friends.  The European Union has a 10% tariff imposed on cars imported from the USA.  Guess they were not really our friends. (William Kramer)

Look at how badly Trump bungled his tariff declaration, Republicans. Your president and hero is having to back-pedal furiously, to make many exceptions to the tariffs, so that the US will not be isolated, in a trade war with China.

Why, oh why do you still have faith in that bumbling clown? (Michael Quick)

The US must not let loose of trade policy on EU. The insular and bigoted EU nations should stop the free trade disguise to sell only Audies and French wine using the US’s innate and free spritred mindset. But, now the US don’t even have the last straw to restore the demise and failing states of the economic and social fabrics of rural and urban America.

The keeping on tariff on EU and allies should be kept same as directed to China and Korea’s immoral fake capitalism on steel and industrial goods’ dumping. If anything, the US should consider to put on high tarriff on mercedes and french and Europeans wines and high ends goods.

EU and Merkel redeem China as more ally than the US and revere China as it can sell Audi’s to the entire chinese high echelon of Beijing military government.  (Leni Ann)

The Chinese knee-jerk response is ridiculous--they should be seeking to accommodate the U.S. in reducing the trade imbalance, ending their predatory theft of intellectual property, and defending and extending their non-tariff barriers. Their retaliatory measures, for example, against U.S. farmers only will alienate American farmers.

Also, the U.S. is only one of many countries dissatisfied with China's trade practices and soon they will find themselves pressured from many sides. It's a fight they cannot win. Moreover, the Chinese economy is at greater risk of imploding than the U.S. economy. (David Weisz)

@David Weisz : I'm pretty sure that China will act in what it perceives to be its best interests.Having lived and worked in China, I'm pretty sure that it doesn't give a flying you-know-what if American farmers are alienated, any more than we care if Chinese farmers are alienated. (Peter Kranzler)

@Kranzler, Weisz: Yes, we should have been working on a collaborative response to China.  But Trump has isolated and weakened America.  The TTP represented 40% of global GDP; he walked away and lost that leverage.  He has alienated the British, the Canadians, and nearly every one of our (former?) allies.  And it is clear no nation can trust Trump: his commitments are worthless, reversed by an early morning tweet.

China understands perfectly well that it has to develop its own research ability to drive cutting edge developments; it can not rely on American (or European) IP to achieve the leadership it seeks.  So China is pouring billions into research institutes and research universities--it already has the world's fastest computer, built with Chinese chipsets.  China is already on a par or ahead of the US. in several technologies.

And what are we doing to make America more competitive?  Virtually nothing.  Neither tax cuts nor tariffs/trade wars will change the dynamic. (Fred Carstensen)

I always wondered if someone has conducted a review what would tariffs do, if implemented. Would that mean that we stop buying products from China, because we have enough production capacity here locally, or would it just mean that people will pay more and government would get bigger because they collect more money in tariffs?

And how would the tariffs affect US companies like Apple, who make products in China and then import them to US for selling. Would Apple build a factory here in US to make their iPhones? And even if they would, how quickly? Three years, five years? While we all pay higher prices and the added cost go to government? I am by no mean economist or well versed in foreign trade, but I sure would like to learn. (Karel Prochazka)

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Post time 2018-3-22 16:38:06 |Display all floors
This post was edited by Boston101 at 2018-3-22 16:38
Chinaman2017 Post time: 2018-3-22 10:15
Do you know how many Americans being employed in the China import biz? Do you want them to be laid ...

Do you know how many manufacturing jobs the US lost? Five (5)  million manufacturing jobs from 2000 to 2015. The few import jobs, you talk about, comes no where near the amount of money one can earn from manufacturing.

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Post time 2018-3-22 16:42:42 |Display all floors
Chinaman2017 Post time: 2018-3-22 10:19
Can you solve any trade problems due to own inferior competitiveness simply by blaming your compet ...

China is a communist dictatorship, though it has adopted a few aspects of capitalism in order to participate in global trade. Unlike US’s free-trade approach, communist capitalism operates on the strategy of mercantilism and plays the game by its own rules.

It's time to stop China from breaking the rules. If you don't like it, then sell yours goods to another market just as you spoke about earlier.

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Post time 2018-3-22 18:05:42 |Display all floors
Boston101 Post time: 2018-3-22 16:42
China is a communist dictatorship, though it has adopted a few aspects of capitalism in order to p ...

All I know is the US who's breaking the rules. China has been complying to trade rules for long time. Not only i know that, the whole world knows.

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Post time 2018-3-22 20:24:24 |Display all floors
Chinaman2017 Post time: 2018-3-22 18:05
All I know is the US who's breaking the rules. China has been complying to trade rules for long ti ...
PRC government’s recent actions—such as restricting exports and implementing indigenous innovation policies that favor domestic industry—have caused foreign traders and investors to fear that China may be rigging the laws against them. In a number of critical arenas relating to WTO obligations and extending beyond WTO obligations, renewed state intervention seems to have supplanted market-oriented reforms, and China seems to have shifted away from a commitment to freer trade and investment toward a policy of protectionism.

How do US companies recoup their loss due to China's industrial espionage and counterfeiting?
Can China remove the condition of accessing the Chinese markets by requiring US companies to build plants in China to create joint ventures with local companies—which forces them to share their latest technologies?
China also requires foreign companies with plants in China set up R&D facilities in China. This strategy is one way China steal intellectual property (IP).
China owns and subsidizes many companies, as in the steel industry, which are against WTO rules.
In addition, China has still not signed the WTO Agreement on Government Procurement. So, forget about any Huawei arguments.

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Post time 2018-3-22 20:51:04 |Display all floors
This post was edited by tenderloin at 2018-3-22 20:51
Boston101 Post time: 2018-3-22 20:24
How do US companies recoup their loss due to China's industrial espionage and counterfeiting?
Ca ...

There's no US government procurement policy with any Chinese products why you talk about Chinese government procurement??

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