China should quickly get out of its huge US trade problem (good article)

CNBC.com ^ | 1 hour ago | Dr. Michael Ivanovich

[cba123]

Beijing cannot indefinitely continue to accumulate wealth and technology by exploiting America’s open markets.

A prompt solution of the U.S.-China trade dispute requires a rebalancing on bilateral trade accounts — drastically lower Chinese sales to the U.S. and sharply increasing Chinese purchases of American goods and services. China’s regulatory changes are a different matter.

Financial markets should stop fretting about the U.S.-China trade problem — that’s a peripheral issue and a purely trading event. Only the Fed can crash Wall Street.

(Please see full article at the link)

[cba123]

It is time to stand up, for America, Mr. President.

America first.

Too many people have been selling out America, to China for far, far too long.

This is in large part why you won.

Bring back American businesses.

Please.

[cba123]

https://www.cnbc.com/amp/2019/03/18/china-should-quickly-get-out-of-its-huge-us-trade-problem-commentary.html

[entropy12]

Trump is the only president who is making the effort. Even Reagan encouraged China trade.

[cba123]

The bilateral situation between our two countries was VERY, VERY different way back then.

Now it is becoming critical. It is ridiculous, how badly we are now sold out.

This issue is why you were elected, Mr. President.

This issue.

[gaijin]

Good post.

People need to hear this more.

[DIRTYSECRET]

We should not have opened up to them as much as we did. You end up with Loral under Clinton. Then there’s the Bushies. Deep state. We pay the price. WE should have made alll those race deals with the Philippines. They like Americans. Call centers in India might help with the Chicoms and Pakistan but they only tolerate us.

[PGR88]

Part of the problem is America’s to fix.

American liability and tort-law, American taxes, American government regulations of all kinds, and American welfare system make the low-paid Chinese worker much more attractive to US corporations.

[cba123]

One short generation ago, all the things on all the stores, were all made here.

(Over-simplifying for argument.)

Bring them back.

[cba123]

(Just to be clear, I am in the States right now)

[roadcat]

American liability and tort-law, American taxes, American government regulations of all kinds, and American welfare system make the low-paid Chinese worker much more attractive to US corporations.

Correct. Solution? Poison the attraction. Tariffs! A series of actions by President Trump are already under way. However, we have a Congress that constantly attempts to block President Trump, a Congress that holds allegiance to lobbyists and constituents that don't care about making America great again. So how does one poison that allegiance of Congress?

[Robert DeLong]

One of the issues for sure, but far from being the only issue. Illegal immigration is another huge issue for many.

[cba123]

Myself included.

[Mr. Jeeves]

Poison the attraction. Tariffs!

Next time you go to the store to buy a pair of jeans, they will cost $275.00. Pay for them happily! No complaints allowed, since your solution does nothing about the tort laws, mandatory unionism, and excessive regulation that drove production offshore in the first place.

[vannrox]

I agree that the best solution to the trade imbalance is to increase trade in such a way that more American products are purchased in China.

Believe me, the Chinese want this.

Believe me, the Europeans do not want this.

In fact, the trade arrangements that China has with European nations specifically require tariffs on competitive products; which is USA products. The sticking point and the biggest issue in all these USA - China trade talks is what to do with all the web-of-trade restrictions that the EU and their sister states have negotiated with China.

[cba123]

What drove American production offshore, was in large part, simple greed.

[cba123]

I would like to believe what you say.

I really would.

However, it really does not appear to be true.

[roadcat]

Pay for them happily!

You didn't read the second half of my message.

"So how does one poison that allegiance of Congress?"

Higher tariffs are the solution to the trade imbalance with China. Of course, without cheap Chinese goods in Walmart we're going to have unhappy screaming consumers. They are the ones who will have to attack Congress and get them off their butts (and away from their lobbyists) to deal with 'tort laws, mandatory unionism, and excessive regulation' etc.

[ChinaGotTheGoodsOnClinton]

The premise of the article seems to be that it is in the long term interest of China to quit ripping off the US.

Sure, they will voluntarily do that. When pigs fly.

[Stevenfo]

I know a person who worked at a door manufacturing plant in Tennessee. His company was once fined $600K for not hiring a black lady who had applied for a job. She went to EEOC and they found the company had too few blacks. This type of action affects every company in the USA. Insurance rates will reflect this risk. Companies hire less qualified minorities to defend themselves. Regardless, doing business in the USA has this and much other regulatory overhead that China does not have.

[nathanbedford]

What drove American production offshore, was in large part, simple greed.

I think you mischaracterize the dilemma of the manager facing sales losses to cheaper widgets imported by his competitor. Either he takes his business offshore or the vultures of Wall Street will read his next quarterly report and come in for the kill. Thus, a vicious cycle of outsourcing accelerates, generously stimulated by our tax laws and our domestic regulations.

I am not sure all of the assumptions in this article, however, are factually correct when it comes to describing the extent and basis of Chinese trade margins and our trade negatives. It could be that our economy under Trump is doing very well and we are therefore rich enough to export more and the Chinese economy is doing relatively poorly compared to recent years and they are, therefore, importing fewer American goods and basic materials.