Thread: The Truth About Chinese Imports ...

The Truth About Chinese Imports ...

Michael Evans
IndustryWeek Columnist
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... is that they are cheaper than U.S. goods.

They will continue to be cheaper even if the yuan revalues.

They will continue to be cheaper even if the U.S. slaps on "punitive" tariffs. In that case, the Chinese will just ship them to a third country and they will be imported from there.

They will continue to be cheaper even if mfg productivity grows at record rates and wages don't rise at all.

They will continue to be cheaper even if the U.S. economy goes into recession and the dollar plunges.

So what are we all going to do about it?

I know, it's a shame to see all these long-time businesses go down the drain, to see lifetime employees tossed out on the streets, and small towns close up shop. I understand these sentiments, and I get these communications all the time whenever I write about this subject. But what should be done? Most consumers, when they are given the choice between buying two identical goods, will choose the lower-priced option. That leaves them more money to spend on other goods and services, which creates jobs elsewhere in the economy.

You either believe in capitalism or you don't. If you do, part of the package is creative destruction, where someone with a better idea or a better method of producing the item takes away your market. It has been happening for over 100 years. The Chinese threat to American industry is no more severe than the Southern threat to New England textile mills that started in the 1920s. Hardly a mill remains in that part of the country. Yet it is thriving, as it moved to more high-tech upscale industries. The South can do the same thing if it wants, and many communities have already made that choice.

Also, I'm getting sick and tired about how hearing how Wal-Mart is taking away all those manufacturing jobs. If you don't like the way they run their company, fine. Don't shop there. And if you don't like the way they treat their employees, fine. Don't work there. And if you think the management are crooks, fine. Don't be so anxious to get their legal business, or their accounting business, or their investment business. or buy their stock. It's a free country. But the time spent whining about how "unfair" Wal-Mart is could be better spent in more productive activities.

The manufacturing sector in China is adding about 10 million new jobs per year. Of course, not all those people work producing exports to the U.S. But the number is so huge that any temporary attempt to slow them down would be futile. Eventually, their standard of living will come up to ours -- just as it did in Japan -- and their goods won't be priced so much lower than ours. Until then, roll with the punches and save your energy for getting ahead instead of complaining about it.

http://forums.industryweek.com/showthread.php?t=81

Eventually, their standard of living will come up to ours -- just as it did in Japan -- and their goods won't be priced so much lower than ours. Until then, roll with the punches and save your energy for getting ahead instead of complaining about it.

So China is being compared with Japan? China has at least ten times the population of Japan! And then there is India.... We already have developed a "Rust Belt" from competing with Japanese imports.

Ah yes, another 'submit to the system or perish' blurb from a corporate globalist. Ho-hum, yawn....

Many countries that have established strong tariff/trade policies have viable economies and high standards of living. China is a big player in contradiction to the aforementioned example, but there are countries that have not thrown themselves at the mantra of 'free trade' and have faired just fine - thank you very much.

Re:

Also, I'm getting sick and tired about how hearing how Wal-Mart is taking away all those manufacturing jobs. If you don't like the way they run their company, fine. Don't shop there. And if you don't like the way they treat their employees, fine. Don't work there. And if you think the management are crooks, fine. Don't be so anxious to get their legal business, or their accounting business, or their investment business. or buy their stock.

One word for you pal: Costco. They're beating the pants off Malwart at the moment. It's growing faster and has a business model and demonstrates corporate responsibility - which is very unlike Malwart. No, I don't shop there. I would never work there. I would never invest in it. Just 'say no' to Malwart.

It's a free country.

Actually, pal, you need to read "Democracy for the Few", by Michael Parenti or listen to a speech by Dr. Paul. The short answer is: in theory, yes; in practice, NO.

But the time spent whining about how "unfair" Wal-Mart is could be better spent in more productive activities.

See you at Costco.

BUT WE DONT HAVE TO BUY CHINESE GOODS IF WE DONT WANT TO. WE CAN SEEK OUT OTHER GOODS.....AND WE SHOULD

Hey PhredE,

I like the term Wal-qaeda better...

Hey Pine. ...That works for me!

I was watching Warren Buffet(?I don't know how to spell his name)) and he was telling that entrepeneurs
are starting to plan moving from China to Vietnam because the labor work
will be cheaper over there and the factories need to look for cheaper laborers. He said also the salaries to Americans were too high so they had to look for other alternative.
This was on CNBC and it was an interview on board of his jet when he was coming back from Corea

What if China had not controlled its population? Would the prospect of two billion Chinese, either competing with our industries or looking for work because they are displaced, seem more palatable?