Thread: China’s Trade and Manufacturing Flourish … While America’s Tanks

China’s Trade and Manufacturing Flourish … While America’s Tanks



Submitted by George Washington on 12/03/2012 13:13 -0500

• Brazil
• BRICs
• China
• Eurozone
• India
• International Monetary Fund
• SocGen

U.S. manufacturing has shrunk to a 3-year low.
Business Insider notes:

As we wrote earlier, one of the big stories from today’s PMI (Purchasing Managers Index – a primary measure of a country’s manufacturing activity) reports was the strength of the BRICS. China, Brazil, South Africa, India, and Indonesia all turned in good reports.

Europe was stable too. Eurozone PMI hit its highest level in 8 months.
And this time it was the U.S. ISM report that laid a brick, with the headline number going sub-50 (signaling contraction) and various sub-indices doing poorly.

Whereas the rest of the world is now on an up-tick in momentum, it appears that the U.S. (perhaps due to a combination of Cliff worries and Sandy) is seeing a rough patch.

Earlier today, we posted a couple of sentences from SocGen analyst Kit Juckes. The gist was: The China hard landing risk was coming off the table, the Euro crisis was fading, and now the last risk was the U.S. and the cliff.

Juckes wrote:

An optimist will tell me that at 50.6 China’s manufacturing PMI is at its highest level since April, a pessimist will point out that it’s barely above 50. But the ‘tail risk’ of an imminent hard landing for the Chinese economy is fading, just as the conclusion of the latest Greek drama means that risk of a return to full-blown Euro Zone crisis is fading. So, two of three major risks are reduced, leaving only the dreaded ‘fiscal cliff’ to worry about.

And in a must-read article, AP analyzes IMF data on 180 nations’ trade with China – and concludes that China has surpassed America as the world’s “top global trader”:

As recently as 2006, the U.S. was the larger trading partner for 127 countries, versus just 70 for China. By last year the two had clearly traded places: 124 countries for China, 76 for the U.S.

***

Despite China’s now-slowing economy, its share of world output and trade is expected to keep rising, with growth forecast at up to 8 percent a year over the next decade, far above U.S. and European levels.

***

The United States is still the world’s biggest importer, but China is gaining. It was a bigger market than the United States for 77 countries in 2011, up from 20 in 2000, according to the AP analysis.

***

The United States still does more trade overall – but just barely. If the trend continues, China will push past the U.S. this year, a remarkable feat for a country so poor 30 years ago that the average person had never talked on a telephone.

***

China resumed its upward trajectory in the last two years. Even with key Western markets in a slump, exports are up 58 percent since 2009. Imports are up an even sharper 73 percent.

Indeed, some claim that China is already the world’s biggest economy.
Postscript: While the U.S. has launched wars all over the world to seize control of resources, China has quietly been trading for its needs, or mining or building resources itself for subsequent export. See this, this and this. No wonder China is surpassing the U.S. as the world's trading giant.
And the only healthy sector of U.S. manufacturing is military. But wars are bad for the economy … and we may be headed in the wrong direction.
Another difference between the U.S. and China: derivatives, which Warren Buffet called "weapons of mass destruction". Their unregulated use were largely responsible for the 2008 crisis. China never allowed derivatives to the extent the U.S. did, and reined in derivatives somewhat (here, here, here and here) during the economic crisis. On the other hand, U.S. banks have increased their derivatives exposure - with government backing - and are massively manipulating the derivatives markets. Given that derivatives are inherently destabilizing for the economy, this only hurts the U.S.

China

Manufacturing Hits 3-Year Low as Economic Weakness Returns

Checking Wal-Mart's Shelves for American-made goods, Part 4 ...

americanmanufacturing.org › Blog
May 18, 2011 – ManufactureThis has been looking at Wal-Mart stores for the past week, ... Steam Iron, eight models from $9.00 to $49.98, all made in China ...



Walmart in China

http://www.cornellpress.cornell.edu/...80140100107390
Walmart and "Made in China" are practically synonymous; Walmart imports some 70 percent of its merchandise from China. Walmart is now also rapidly ...



mostly sourced from the U.S. GROCERIES
Apples, all from the USA
Green Peppers, Mexico
Iceberg Lettuce, United Arab Emirates
Grapes, Chile
McCormick Garlic Powder, China
Pringles potato snacks, Mexico
HOUSEHOLD GOODS AND APPLIANCES
Napkins, Wal-mart brand ,USA
Wisk laundry detergent, USA
Clorox Bleach, USA
Paper Shredder, China
Avery Labels all, Mexico
Dell Computers, Mexico and China
HP Computers, China
Steam Iron, eight models from $9.00 to $49.98, all made in China
Microwaves, nine models, China and Malaysia
Rubbermaid Storage bins, USA
Igloo Ice Chest, USA
Clock Radio, five models all from China
Paula Deen Cookware, Indonesia and China
Jack Lalanne Power Juicer, China
HOMEWARE
All bed sheets, India
Bed Pillows, China (some were outer shell made in China and filled in USA)
Memory foam bed topper, USA
All Blankets, China
16 assorted table lamps, China
SHOES
Men’s rubber muck boots, China
Dr. Scholl’s men’s dress shoes, China
Ozark Trail Boots, China
Faded Glory shoes (Wal-mart brand), China
CLOTHING
N.F.L. Licensed New England Patriot’s shirt, Nicaragua
M.L.B. Licensed Red Sox’s boys pajama set , China
N.F.L. Licensed Tom Brady Jersey, Guatemala
NASCAR Licensed Logo, and Driver shirts, Mexico
Wrangler Jeans, Mexico
Rustler Jeans, Mexico
Faded Glory Jeans, China
ASSORTED
Turtle wax car products, USA waxes, cleaners, polishes
Baby Medicine Dispenser, China
Infant Nasal aspirator, China
Playtex Binky, China
Casco child car seat, USA
Graco Child car seat, China

The Emma Maersk is one of three ships of this class presently in service. Another two ships are commissioned to be completed in 2012. All 5 vessels are dedicated to one customer - Wal-Mart!

http://www.thecablevine.com/forum/f36/emma-maersk-2888/

What a ship! This monster transports goods across the Pacific in just 5 days! The 5 day trip across the Pacific makes this behemoth competitive at carrying perishable goods.

The typical container ship cruises at 18 - 20 knots. The Emma Maersk's cruise speed is 31 knots. This equates to the goods arriving 4 days before the typical container ship on a China to California run.
.

------------------------------------------------

The ship was built in five sections. The sections are floated together and then welded.

------------------------------------------------

The command bridge is higher than a 10-story building.

------------------------------------------------

Additional info on the Emma Maersk:

Country of origin - Denmark
Length - 1,302 ft
Width - 207 ft
Net cargo - 123,200 tons
Engine - 14 cylinders in-line diesel engine (110,000 BHP)
Cruise Speed - 31 knots
Cargo capacity - 15,000 TEU (1 TEU = 20 cubic feet) 11,000+ containers of which 1,000 can be reefers
Crew - 13 people
First Trip - Sept. 08, 2006
Construction cost - US $145,000,000+

------------------------------------------------

The silicone painting applied to the ship's bottom reduces water resistance at full speed. This equates to an annual savings of 317,000 gallons of diesel fuel.

------------------------------------------------

The full crew of the Emma Maersk is just 13 people on a ship longer than a US aircraft carrier (a U.S. flat-top has a crew of 5,000).

This transport ship has a 207 foot wide deck beam that holds an incredible 11,000+ containers, of which 1,000 can be reefers! With it's 207' beam, it is too wide to fit through the Panama or Suez Canals. This makes the Emma Maersk strictly trans-Pacific.

------------------------------------------------

The docking station in the USA has 11 cargo crane rigs that can operate simultaneously unloading the Emma Maersk in less than two hours.

------------------------------------------------

The Emma Maersk is one of three ships of this class presently in service. Another two ships are commissioned to be completed in 2012. All 5 vessels are dedicated to one customer - Wal-Mart!

------------------------------------------------

91% of Walmart products are made in China. During March of 2010, a recent documentary on the History Channel noted that all of these containers are shipped back to China - EMPTY! Yep, that's right. We send nothing back to China! What does that tell you about the current economic state of this country? Just keep buying those imported goods (mostly gadgets) until you run out of money!

China’s Trade and Manufacturing Flourish … While America’s Tanks

Posted on December 3, 2012 by WashingtonsBlog

U.S. Manufacturing Index Plunges to 3 Year Low … While Manufacturing Rises in the BRICS

U.S. manufacturing has shrunk to a 3-year low.

Business Insider notes:

As we wrote earlier, one of the big stories from today’s PMI (Purchasing Managers Index – a primary measure of a country’s manufacturing activity) reports was the strength of the BRICS. China, Brazil, South Africa, India, and Indonesia all turned in good reports.

Europe was stable too. Eurozone PMI hit its highest level in 8 months.

And this time it was the U.S. ISM report that laid a brick, with the headline number going sub-50 (signaling contraction) and various sub-indices doing poorly.
Whereas the rest of the world is now on an up-tick in momentum, it appears that the U.S. (perhaps due to a combination of Cliff worries and Sandy) is seeing a rough patch.

Earlier today, we posted a couple of sentences from SocGen analyst Kit Juckes.

The gist was: The China hard landing risk was coming off the table, the Euro crisis was fading, and now the last risk was the U.S. and the cliff.

Juckes wrote:

An optimist will tell me that at 50.6 China’s manufacturing PMI is at its highest level since April, a pessimist will point out that it’s barely above 50.

But the ‘tail risk’ of an imminent hard landing for the Chinese economy is fading, just as the conclusion of the latest Greek drama means that risk of a return to full-blown Euro Zone crisis is fading. So, two of three major risks are reduced, leaving only the dreaded ‘fiscal cliff’ to worry about.

And in a must-read article, AP analyzes IMF data on 180 nations’ trade with China – and concludes that China has surpassed America as the world’s “top global trader”:

As recently as 2006, the U.S. was the larger trading partner for 127 countries, versus just 70 for China. By last year the two had clearly traded places: 124 countries for China, 76 for the U.S.

***
Despite China’s now-slowing economy, its share of world output and trade is expected to keep rising, with growth forecast at up to 8 percent a year over the next decade, far above U.S. and European levels.

***
The United States is still the world’s biggest importer, but China is gaining. It was a bigger market than the United States for 77 countries in 2011, up from 20 in 2000, according to the AP analysis.

***
The United States still does more trade overall – but just barely. If the trend continues, China will push past the U.S. this year, a remarkable feat for a country so poor 30 years ago that the average person had never talked on a telephone.

***
China resumed its upward trajectory in the last two years. Even with key Western markets in a slump, exports are up 58 percent since 2009. Imports are up an even sharper 73 percent.

Indeed, some claim that China is already the world’s biggest economy.

Postscript: While the U.S. has launched wars all over the world to seize control of resources, China has quietly been trading for its needs, or mining or building resources itself for subsequent export.

See this, this and this. No wonder China is surpassing the U.S. as the world’s trading giant.

And the only healthy sector of U.S. manufacturing is military. But wars are bad for the economy … and we may be headed in the wrong direction.

Another difference between the U.S. and China: derivatives, which Warren Buffet called “weapons of mass destruction”. Their unregulated use were largely responsible for the 2008 crisis. China never allowed derivatives to the extent the U.S. did, and reined in derivatives somewhat (here, here, here and here) during the economic crisis.

On the other hand, U.S. banks have increased their derivatives exposure – with government backing – and are massively manipulating the derivatives markets. Given that derivatives are inherently destabilizing for the economy, this only hurts the U.S.


For a contrary view, see this and this.


China’s Trade and Manufacturing Flourish … While America’s Tanks - Washington's Blog