Archive for November 14th, 2010

A recent article in the LA Times, http://www.latimes.com/business/la-fi-china-jetliner-20101113,0,4824354.story hightlights one of the many unfair trade practices that the Chinese have implemented to put themselves at an advantage over their trading partners.  They are keen on entering higher-end manufacturing segments, such as large plane aviation, and this article details their efforts in building a passenger plane to compete with the likes of the Boeing 737.  There’s nothing wrong with wanting to build a plane, however, they’re going about it by requiring that outside suppliers, such as Rockwell or GE, partner in joint ventures with state-owned Chinese companies.  This way, all the foreign technology can be adopted by Chinese companies and they can later wave goodbye to the Americans when they’re done!  Not only that, but state-owned airlines will be required, if not strongly encouraged by the government, to buy planes from their domestic producers.  So then you will have Chinese plane manufacturers with a protected home market, government-subsidized production, and research cost that was skipped by stealing foreign technology. Then, they’ll be able to undercut Airbus and Boeing through their continued Yuan undervaluation and these factors.

Such unfair Chinese trade practices must be countered.  We should require that any Chinese companies wanting to do business in the US be required to have domestic joint venture partners.  We should require that Chinese producers manufacture a portion of their products in the US.  We should also require our federal government contractors to have a minimum of American equipment or supplies or set a ceiling for Chinese products.  I am all for free trade, but the trade we have with China is anything but fair.  Our government is betraying our interests by kowtowing to the Chinese and selling our jobs overseas in exchange for financing our budget deficit.  I would much rather piss of China and have them stop funding our debt-addiction than lose another single job to them because of this.  The American people have to wake up and stop blaming all our problems on cheaper Chinese labor.  The reality is far more complex.

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