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China tells US to put its house in order
The Financial Times ^ | November 22 2004 | James Kynge

Posted on 11/23/2004 10:15:33 AM PST by CDB

“That is not sustainable,” he added. “The appreciation of the RMB will not solve the problems of unemployment in the US because the cost of labour in China is only three per cent that of US labour. They should give up textiles, shoe-making and even agriculture probably."


TOPICS: Business/Economy; Foreign Affairs; Government
KEYWORDS: china; trade
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To: CDB

Go back to the old MFN and WTO threads and youll see some Freepers saying the same thing...


21 posted on 11/23/2004 10:43:12 AM PST by gnarledmaw (I traded freedom for security and all I got were these damned shackles.)
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To: Conspiracy Guy

"We'll get right on it."

This Chinese fellow is sooo impatient.


22 posted on 11/23/2004 10:47:07 AM PST by Shermy
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To: Shermy

Washy crowsie.


23 posted on 11/23/2004 10:47:37 AM PST by Conspiracy Guy (Kevin Sites is a coward and a terrorist sympathizer.)
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To: Bikers4Bush
Exactly my point. We are by far the largest consumers of Chinese goods, we need to hit them where it hurts, their wallet.

Not true. Read on from the Chicom news source itself:

"The trade volume with Japan, China's largest trading partner, hit 60.91 billion US dollars, up 36.1 percent."
Source: China's Foreign Trade Surged 39 Percent in First Half Year 7/11/03 People's Daily On-Line

24 posted on 11/23/2004 10:48:25 AM PST by jriemer (We are a Republic not a Democracy)
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To: CDB
They are trying to corner natural resources (following the same track as Japan 1930s) and we will (again) have to deal with that.

We can see this war coming in slow motion but our politicians won't do anything except help their constituents pigout at the Walmart feeding trough.


BUMP

25 posted on 11/23/2004 10:49:53 AM PST by tm22721 (In fac they)
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To: jriemer

And I'm supposed to believe the Chi com news source?

I don't think so.


26 posted on 11/23/2004 10:50:23 AM PST by Bikers4Bush (Flood waters rising, heading for more conservative ground. Vote for true conservatives!)
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To: jpsb
Can't blame them for making the suggestion,when a sitting US president suggested the US quit farming and rely for food on Third World farmers instead .
27 posted on 11/23/2004 10:53:45 AM PST by kaylar
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To: tm22721
We can see this war coming in slow motion

You can bet your butt, a draft will be needed to fight it.

And if we are still fighting politically correct wars when it comes--the outcome is less than certain.

28 posted on 11/23/2004 10:55:03 AM PST by riri
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To: Last Dakotan

Tell China we are closing their access to Home Depot, Wal Mart, Target, Walfgreens, Costco, etc.


29 posted on 11/23/2004 10:55:07 AM PST by FrankRepublican (Boycott NBC & their parent company General Electric for smearing the USMC)
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To: CDB
In a mark of China's growing economic confidence, the country's central bank has offered blunt advice to Washington about its ballooning trade deficit and unemployment.

China's arrogance will only grow more insufferable as China grows wealthier.

30 posted on 11/23/2004 10:56:55 AM PST by snowsislander
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To: CDB

For labor intensive industries, the 3% labor figure is a reason companies locate in China. Automation in the U.S. can overcome some of this difference even for labor intensive industries.

But for most industries, lower labor cost is not the only draw for U.S. companies to set up in China.

1). China is a very big market with an emerging middle class of over 300 million people. They are buying radios, TVs, microwaves, cars, shampoo and all manner of consumer goods in very large numbers.

2). China provides a good jumping off point to other world markets, including other asian countries, the Middle East and Europe.

3). The vast numbers of companies already set up in China provides a very significant market for support and secondary manufacturing industries supplying these manufacturers with items such as corregated, ball bearings, rubber components, accounting services, and more.

4). One of the biggest draws for U.S. manufacturers to set up in China, however, is a desire by U.S. manufacturers to escape a very overbearing regulatory and legal burden associated with doing business in the U.S. In short, the U.S. represents a very hostile business climate whereas the Chinese welcome business.

Just one line item of regulatory compliance on a U.S. based company's balance sheet will exceed the entire G&A expense of a small to medium sized company doing business in China.

Change the business climate for manufacturing in the U.S. and you will see a significant slowing of U.S. manufacturing going to China. And that does not mean lowering the wages of U.S. workers.


31 posted on 11/23/2004 11:03:13 AM PST by BJungNan (Stop Spam - Do NOT buy from junk email.)
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To: Bikers4Bush
And I'm supposed to believe the Chi com news source?
I don't think so.

Ok, here's two other sources saying the same thing.

"With China-related business booming, the argument that China is a threat to Japan, or Japan's "China Syndrome," is rapidly receding. Exports to China, especially, are surging and soaring demand in China is becoming a driving force behind the recovery of the Japanese economy.

According to Japanese statistics, Japan's trade with China in 2003 totaled $132.4 billion, marking a record high for the fifth consecutive year. Of this amount, exports to China surged 43.6% to $57.2 billion, while imports from China rose 21.9% to $75.2 billion...."

Diagram: "Greater China" has become Japan's largest export market

(Source) Based on customs statistics of Japan's Ministry of Finance

Japan's "China Syndrome" Dissipating as Exports to China Surge (2004.3.1) Research Institute of Economy, Trade and Industry (RIETI) Japan

32 posted on 11/23/2004 11:04:22 AM PST by jriemer (We are a Republic not a Democracy)
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To: jriemer

Uhm, that article is talking about the Japanese economy with respect to the Chinese. Not the U.S. with respect to the Chinese.


33 posted on 11/23/2004 11:09:49 AM PST by Bikers4Bush (Flood waters rising, heading for more conservative ground. Vote for true conservatives!)
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To: jriemer

Walmart has sales of $256 billion annually. 80% of their products come from China.

Assuming they have a 100% markup on the chinese goods then walmart alone imports roughly $102 billion in chinese goods annually.


34 posted on 11/23/2004 11:18:48 AM PST by Bikers4Bush (Flood waters rising, heading for more conservative ground. Vote for true conservatives!)
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To: Last Dakotan
...(at great cost)...

You did learn something; I'm so proud of you.

35 posted on 11/23/2004 11:23:36 AM PST by LowCountryJoe (Willie Green after a chemical attack would make an excellent selective unmasking candidate.)
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To: epluribus_2

Quite possibly because there's an American consumer demand for those items, I'm guessing.


36 posted on 11/23/2004 11:25:26 AM PST by LowCountryJoe (Willie Green after a chemical attack would make an excellent selective unmasking candidate.)
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To: Last Dakotan; Bikers4Bush
No I'm not! I get hit from both sides in the free trade argument here.

I'll attest to this.

BTW, who is the majority and what are they rolling over and taking? No one is making anyone do anything the way I see it, there's no forcing going on...only market forces. Do markets scare you?

37 posted on 11/23/2004 11:32:13 AM PST by LowCountryJoe (Willie Green after a chemical attack would make an excellent selective unmasking candidate.)
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To: Bikers4Bush

"Walmart has sales of $256 billion annually. 80% of their products come from China. "

12% of China's exports to America wind up on China Inc's, er sorry, I mean WalMart's shelves.

So long as China's masses accept $2 a day in wages and the other 500 million are content with dirt to eat, Mr. Li can continue to dish out advice to America but the day of reckoning is coming.


38 posted on 11/23/2004 11:32:23 AM PST by matchwood
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To: Last Dakotan
China's currency peg is a declaration of a unilateral trade war.

The falling dollar is by design and to put the heat on China to devalue (un-peg if you will). Believe me, as you wrote earlier, this manipulation has tremendous costs to the Chinese.

39 posted on 11/23/2004 11:35:02 AM PST by LowCountryJoe (Willie Green after a chemical attack would make an excellent selective unmasking candidate.)
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To: Bikers4Bush

I don't see why you would not believe anything you read. Tariff advocate?!?! What's so great about tariffs that you've read?


40 posted on 11/23/2004 11:38:06 AM PST by LowCountryJoe (Willie Green after a chemical attack would make an excellent selective unmasking candidate.)
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