Why, when we think of all we import from China, the mind runs to trade barriers to save our economy. “Let’s stop letting the Chinese sell so much to USA!”
So how much of what we buy comes from China? Anyone want to guess? It is less than 3% 2.96% per cent to be exact. This is USA dept of commerce data, that when reported caused a bit of a stir, and the numbers were rechecked by many independent sources. I checked them too. Yep, less than 3%.
So little? Of course! You don’t buy your house form China, or your food or insurance, or health care. What other big expenses? Gas, not from China. Some clothing. You iphone came from China. And there is where the misapprehension occurs. You think nothing of paying $1000 a month for housing, but once eery 4 years you spend a $1000 at Apple, and you take a few days to decide, and you talk to people about it, and you play with the thing again and again. You’ll take an hour to buy a shirt from China, but think nothing of writing a check ever month for $250 for utilities. You belief that “everything comes from China” is delusional.
Once we get our facts straight, like a good marxist, we can begin to think clearly. Let’s look at automobiles for a second, and I quote auto industry sources:
Statistics from CCCME AUTO showed that China exported 849,900 vehicles, full sets of car spare parts and car chassis in 2011, up 49.96 percent from a year earlier and the largest figure seen since 2009. The exports were valued at 10.95 billion U.S. dollars, up 56.72 percent from 2010.
For comparison, Toyota exports from Japan
41,688,000 units worldwide
18,069,000 units USA
China exported automobiles to 190 countries and regions last year, with Russia, Brazil and Iran accounting for most of China's automobile export value, CCCME AUTO said.
How many of these cars were exported to USA?
Zero. Not a single one. How come?
So what is the plan? Cut out market share for USA autos around the world, then come into USA. So what is the USA response?
Well, USA is suing China over Chinese auto exports.
Chinese automakers have been rapidly expanding their shares of markets in emerging markets in South America, for example, traditionally an area of strength for Detroit manufacturers. The W.T.O. case is aimed at all Chinese automotive subsidies regardless of whether the exports are going to the United States.
Wait! What? China has not yet exported a single car to USA and our response is to sue them?
Over what? Well, apparently China bails out its automakers, which is an WTO rule violation. And that is unfair.
And we would never do that. O wait, we do. That is the auto industry. It is dying in USA
We’ve been bailing out the auto industry all along, decade after decade, long before the stupid bailout of Chrysler. And when we refused to buy their risible cars, we had to give them our money anyway. Here is the Detroit Renaissance Center from the 1980s, paid for by taxpayers.
Here is Detroit today. Shovel ready, but not in the politicians' sense.
How come when China wants to compete in certain areas, they get crushed by USA business? Spielberg exports, he crushes the competition And Steve Jobs, and Starbucks? And Nike? Because they compete overseas. And they are not welfare queens in USA. (WalMart failed where it mattered, Hong Kong.)
What is our strength? Design. Marketing. We have a natural trade barrier. It is called innovation. Creativity. Michael Phelps wins the gold by 2 /10ths of a second. It does not take much to win.
We also cheat big time very often. The Chinese learn from us, scandalously. Lance Armstrong.
Hmmmm...
We do not need to cheat, we do not need welfare. We need only freedom. There is not a single Chinese brand known worldwide outside of China. One quarter of the world’s population, not a single brand.
The fact that there are fake Apple stores in China, problems with baby formula, refilled wine bottles, and Kelvin Klein jeans in China is not a problem for anyone in USA. But it is a huge problem for the Chinese themselves. Now, Communist party has called for a “clean business campaign.” The communist party has a winning streak that is not likely to end soon.
A problem for chinese is the opportunity for you. USA is assumed to be clean business. Jackie Chan is the first to point out that may not be so true. Jackie Chan got in trouble for sounding what John Wayne used to sound like when defending USA.
The Chinese advantage is they know they have a problem. Our disadvantage is we are no longer depending on freedom, (why should we? We have drones!). The Chinese are getting their act together all over the world. Competing with usa in the Congo, Brazil and Bulgaria.
And then they will come here. The Chinese have some work to do, and they know it.
If USA autos want to win, they need to compete with China in Turkey. And we are, sort of. The best selling in USA ford truck is made in Turkey. Your bailout dollars at work. it is not possible to tax a corporation, since the end user alway pays all taxes. By moving production overseas a corporation at once avoids stupidly lain taxes and can otherwise launder money forever. you want to see a renaissance in Detroit? Eliminate all corporate taxes, eliminate all Government subsidies and protections. We would crush China worldwide economically.
We have work to do as well. But our only advantage is freedom. The only work going on in politics today is curtailing freedom. We can lose. Lance Armstrong is not the only hero who has cheated. name a single person in the commanding heights, private or public, in medicine, law, military, education, banking, industry, religion ot whatever who is not a hypocritical welfare queen, answering problems with less options and saying “show me the money, right wing every bit as bad as left wing.
And keep in mind. Right now, China has less than 3% share of what you buy. When they get into exporting cars to USA, their share of what you will buy will jump. China wants to get from 3% to 6%. And we are not doing anything about it. Suing China or other trade barriers is the worst possible response. Turn the tax-slaves loose and let USA become number one in other things besides public assistance.
Feel free to forward this by email to three of your friends.
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