Let's keep the Dem's on the run!
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Posted on 10/08/2003 8:30:52 PM PDT by maui_hawaii
Oct. 7 — With the U.S. presidential election only 13 months away and the American economy stuck in low gear, politicians in Washington are eager to show voters that they’re doing something — anything — to address worries that the U.S. is losing jobs to low-cost rivals in Asia. China, thanks to its gigantic trade surplus with the U.S., is a favorite target.
(Excerpt) Read more at msnbc.com ...
What garbage. China is a major cause of economic problems globally, and especially here. When we take action against China then we will see jobs grow. Its cause and effect and simple as that.
They talk about hurting consumers...yeah whatever. Two months back we were talking about deflation and China panderers were claiming 'China only has a small portion of global exports...China is small and has no influence on such things...'
If they have no way to effect deflation then they have no way to help consumers.
They should adopt the motto "Whats best for China comes first" or "China can do no wrong."
Let's keep the Dem's on the run!
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Country and other highlights (Census Basis, not seasonally adjusted) The July deficit with China ($11.3 billion) and July imports from China ($13.4 billion) were both records. The July deficit with Western Europe ($11.2 billion) and July imports from Western Europe ($23.7 billion) were both records. The July deficit with Canada ($5.0 billion) was the highest since January 2001 ($6.8 billion). July imports from South/Central America ($7.0 billion) were a record. The July imports of advanced technology products ($17.6 billion) were the highest since March 2001 ($18.6 billion). The July quantity of crude oil imports (339.7 million barrels) was a record.
If you look at the data and the above quote, the deficit with the EU is 11.2 billion vs. 11.3 billion for China.
China is responsible for about 1/4 of the trade deficit, but not all. The US has a deficit problem with almost every country on the face of the planet including China. China is a large and populous country. The fact that the deficit is large should not be a surprise.
It won’t help U.S. jobs — but will really hurt U.S. consumers.
Right, some Chinese national really cares about the US consumer.
The numbers support that argument. Last year, China had $300 billion in total imports, and exports were just a little over the same amount. Hence, China’s overall trade surplus was modest, even though the figure with the U.S. was $103 billion. But when it comes to the rest of Asia, China has a trade deficit that’s probably $60 billion. The deficit with Taiwan alone is $30 billion.
China's trade with the rest of the world is somehow our concern, or wipes away the surplus we are running with them? Nice try.
Jonathan Anderson, an economist at UBS in Hong Kong, agrees that all the talk about China stealing American manufacturing jobs doesn’t make sense. When it comes to manufacturing, he notes that the Chinese are strong in sectors that aren’t big parts of the U.S. economy, such as light industry. China now exports lots of PCs, for instance, and not many American workers were making computers.
“The bottom line is that there aren’t a lot of those jobs left in the U.S.,” Anderson says. “The average U.S. manufacturing worker is an auto worker or a steel worker, and the competitors are Japan, Europe, maybe Korea — but certainly not China.”
That's right, Americans don't build computers... anymore that is. And, China doesn't produce steel. OK.
How much value-added does China get from all of its electronics exports? Not much, according to Anderson. “About 75 percent of the value-added is imported, from Taiwan, Korea, Japan, whatever,” he says. “The one thing that they do get is a hell of a lot of jobs.”
Impressive, he made a couple paragraphs before he contradicted himself.
How much value-added does China get from all of its electronics exports? Not much, according to Anderson. “About 75 percent of the value-added is imported, from Taiwan, Korea, Japan, whatever,” he says. “The one thing that they do get is a hell of a lot of jobs.”
Next is the part where they will tell us how envious they are of our huge American penises.
They better be doing something or they'll be the ones looking for jobs.
Hmm. Or what's right for those middle calls Americans who's 401k are filled will stocks like Motorola, GM, GE, or any of ther other top investors in China.
Not exactly as cut and dry as you'd like to make it.
Hmm. Or what's right for those middle class Americans who's 401k are filled will stocks like Motorola, GM, GE, or any of ther other top investors in China.
Not exactly as cut and dry as you'd like to make it.
In the short term, tarriffs against China might help, but then production would just move to someplace like Vietnam. If China wan't the problem, it would be Vietnam, India, the Philipinnes, or some other developing country. The problems we have with China are the sypmtoms of how we're dealing with globalization, and can't be pinned on any one country.
I think both sides of the issue are blowing things out of proportion. China isn't a goldmine, but for some companies, it will be very profitably. It also isn't going to destroy the world economy, but it will force some changes.
Economically, politically, and culturally, I'd say that China is on par with Brazil or Mexico. Not the rising giant that some would like to make it out to be.
they will tell us how envious they are of our huge American penises.
Your therapist (as well as your wife) should be concerned with your mental health. Fortunately, I am neither.
we all know which side of the issue you stand on.
You certainly don't: what would you know about the standards of discourse?
Sorry to have interrupted your naval-gazing with my post.
They are creating a bad situation in Asia. Lets say there were 10 million jobs in Asia related to trade and manufacturing... Without China those 10 million would be spread over less people, thus creating a tighter job market. That kind of job market is exactly what is needed for economic recovery here and there both.
Its not all about supply. China can produce like hell, but can't buy worth a ______.
If China were to develop on a different course then it would be a different story. They are trying to use the ASEAN model when they aren't built for it.
China is creating a vast overproduction problem and oversupply of labor and other things.
You think that helps or hurts our 401k's?
If a company is forced to move to China to save on costs, and end up saving 10-15% on costs, but their product prices drop 25% with that move... are they really better off?
Actually they end up 10-15% worse off by trying to save money in an unhealthy way.
The US could easily economically absorb Vietnam and in turn create huge demand at profitable margins in Vietnam.
The problem here is they are trying to solve China's internal problems through exporting to us. Its screwing everyone else though.
The rest of Asia accounts for 1/3 of our exports and doesn't put the same kind of pressure China does. It has healthily developed. China is becoming a detractor, not an adder.
What you said about moving elsewhere...I have been advocating that exact thing for a LONG time.
Shipping parts from Thailand and Singapore to be assembled in China...then shipped to the US...IS NOT consumption inside of China. No matter what their numbers say thats never going to be the case. That is NOT the "Chinese market"... numbers often distort the truth.
Whose Constitution are you reading?
As for the fears of China's export-based economy, I personally believe its too early to tell. True, manufacturing in China is certainly not the same as consumption. But the same thing could have been said about Japan thirty years ago, but their export-dominated strategy kicked up internal consumption. Unfortunately for them, they held on to that strategy too long, with the current results. It is very possible that the same thing will happen in China--it'll spur domestic consumption, but will result in an eventual economic downturn. The Chinese property market is already riduculously overpriced.
I think that it is too early to judge whether China's size will affect the out come. You seem to think it will, but I'm not convinced.
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