The facts of this case indicate that imposing the USITC's recommended quota would not likely benefit the domestic producing industry and instead would cause imports to shift from China to other offshore sources.
I agree with this. I am not against trade at all, hence this company probably would not get 'overall' protection had I been elected President.
However IMO, it will be a much better boon to America to have that shift. China is not a huge boon market for the US.
If we say, spread $50 billion worth of imports from China, and spread them over say 20 competing smaller countries it will be MUCH better for the US.
First we can guarantee market access for other products under that scheme (let us in or don't get the plant)...Secondly in placing a plant in a smaller economy, it creates much better micro economic environments. For example, if we put an electric motor plant in the tiny island nation of Samoa, it would have several effects: First it would employ much of the population. Secondly it would be a massive boom in their economy. Wages would increase, but the products being shipped to the US would still have import price tags on them (albeit not China cheap, but still pretty darn profit making cheap). On top of that, US companies would be able to sell to these new consumers.
Where the tire meets the road is where we sell our goods. Trying to go cheaper cheaper all the time is not in our best interests.
It would still not 100% protect this company above, but the returns reaped would be much better overall. Old folks get their cheap scooters, the importers make money, and the markets we can tap will expand far greater and faster and our returns will be better.
Such a move though will in effect reverse PNTR. Its not anti-trade, just smart business IMHO.
The only real hitch here is that the electronics industry thinks, and is convinced, that China is going to be the next big tech boom.
Absolutely ! Why isn't India, with also one billion people, a target for trade ?