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Archive for January, 2011

The Chinese President, Hu Jintao, is visiting the US this week and will hold talks on a range of economic and security issues with the American administration.  He seems to be actively thumbing his nose at the increasingly annoying issues regarding trade with China, including:

  1. under-valued Chinese currency that makes Chinese products cheaper than they should be
  2. requirement that certain products sold in China, such as green technology or infrastructure, be made using Chinese production
  3. State-condoned corporate espionage that allows the theft and transfer of technology from foreign companies working in China to their competitors or joint-venture partners
  4. the requirement that in order to gain access to the Chinese market, foreign firms must operate jointly with Chinese ones, thus opening the door to #3, and produce their products in China, including R&D, thus disinheriting those firms’ workers of sharing in the benefits of the trade
  5. Chinese import tariffs targeting “sensitive industries” that basically China wants to grow to beat out their competitors in the world
  6. reserving certain raw materials, such as rare earths, to favor Chinese industries over their foreign competitors, while China aggressively scours the planet for more raw materials to amass.

The result of these unfair practices is basically a wealth-transfer from other developed and developing nations to China.  The trade deficit would be nowhere near what it is otherwise.  The rampant unemployment, especially in industrial sectors in the US, would also not be as bad.  Rather than finding improving trade, Western companies trying to export to China are finding more and more trade barriers while we get a glut of Chinese products washing up on our shores.

Is this what the US deserves in exchange for championing China’s entrance into the WTO?  Why should we continue to stick our necks our  so that our heads keep getting cut off by Chinese mercantilist trade tactics?  I say enough is enough!  Start imposing tariffs on Chinese products in mirror-image retaliation for their unfair policies.  People are so afraid of slapping China on the wrist.  South Korea was so afraid of North Korea and kept getting slapped in the face until it wouldn’t take it anymore and got angry.  Now North Korea is acting conciliatory.  I would wager that if NK does anything like it did again, it will be bombed into submission.  So with our trade.  Let’s take the hit of not getting cheap crap from China anymore and not exporting to China.  Let shut off the gravy canal leading from the US to China. There’s still the rest of the world that we can trade with and that’s willing to play fair.

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