They want to grow powerful, as defined by USA, the way the USA has. In international trade, the key is exploiting cheap management, not cheap labor. Now comes the ExIm Bank leader who has a list of complaints against the Chinese versions of the ExIm Bank.
Every single complaint leader Hochburg has against the Chinese are applicable to the ExIM bank. The mendacity is breathtaking. He complains that the Chinese are doing more than we are.
Feel free to forward this by email to three of your friends.
Every single complaint leader Hochburg has against the Chinese are applicable to the ExIM bank. The mendacity is breathtaking. He complains that the Chinese are doing more than we are.
Economists say that state-backed financing for Chinese exporters has contributed only marginally to the substantial expansion of China’s share of global exports over the past two decades. The low costs of Chinese labour and other inputs have been more important.
Mr Hochberg said his biggest concern over Chinese institutions was the opacity of their governance and loans. “China has not demonstrated a great embracing of [a] transparent regime over what their financing terms are, or agreeing to allow more standards,” he said.
Wow. It is ok when we do it, just not when Chinese do it.
The Chinese are out-hustling us in this tactic because they do not require so much baksheesh and overhead to accomplish the task. So they lend more, waste less.
In any event, one of the biggest mistakes in life is to believe your own PR, and although I do not believe leader Hochberg believes a word of ExIm PR, he would actually benefit USA businesses if he advised them to tie up this Chinese credit for USA export sales. The credit goes to customers who buy Chinese products, so JV with Chinese manufacturing and tap into the credit.
Well, of course, it is already being done. Let's compete with what we are good at, not with what we can subsidize.
Feel free to forward this by email to three of your friends.
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