Key How To

Re: [spiers] Key How To

Well, first you repeatedly claim that wages and wage rates have no effect on
pricing or competitiveness. But they say they "face rising wages at the same
time the country's currency is gradually appreciating, making Chinese exports
more expensive abroad". Second, they are saying that "We have to improve our
... management level" while you claim that the one major deficiency in US
business is our management and that Chinese management is one of their major
competitive advantages.

It looks to me like they are saying two things that would seem to contradict
your positions on international trade.


----- Original Message -----
From: John Spiers
To: spiers@yahoogroups.com
Sent: Wednesday, October 18, 2006 12:06 PM
Subject: Re: [spiers] Key How To


Pete,

I am not sure why this woould appall me, it is exactly how it works, and is
exhibit A as to why
US govt policy is so backwards. China wants to get rich like Japan, so they
are doing it the
exact same way. That NYT headline could be straight out of 1975, and read :
"Japan's
automakers also face rising wages at the same time the country's currency is
gradually
appreciating, making Japanese exports more expensive abroad. " The Japanese
goods cost
us, the more we bought. I am delighted both aspects are true... a wealthy
China is all the
better trading partner for a USA. I just regret the communists are fielding a
better team than
USA in the competition for free trade world wide.

JOhn
On Wed, 18 Oct 2006 10:11:43 -0400, "Pete Holt" wrote :

>
> Hi John,
> I thought the following quote from an article in the NY Times concerning
Chinese auto
manufacturers( http://www.nytimes.com/2006/10/18/automobiles/
18chinacars.html?pagewanted=1&_r=1&th&emc=th ) would appall you suitably:
> China's automakers also face rising wages at the same time the country's
currency is
gradually appreciating, making Chinese exports more expensive abroad.
>
> "It is a message for us," said Jiang Lei, the executive vice chairman of the
China Association
of Automobile Manufacturers, a government agency that guides the industry. "We
cannot rely
on cost alone. We have to improve our technology and management level."
>
> Pete Holt

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