Normally,every buyer would look for better prices and bettergoods to buy, sometimes even try very hard to bargain for special discounts ! But the U.S. government is on the contrary constantly criticisingthat Chinais using subsidies and reduce export tax policies in order to export larger
quantity of low cost products to United States. The reasons given are the impact on its local production, causing unemployment and make the trade with China in deficit position.However, the America seem to be the only strange buyers in the world that donot want to buy the cheap and good products from China. Instead of complaining that the selling prices of Chinese products in U.S. market are too low and warning that if China does not change its trading policy, the U.S. government will complain to the W.T.O. and levy higher import duty tax on Chinese imported goods.In fact the America products can not compete with Chinese low cost products because the Americans living standard is much higher than the Chinese. As a developing country China's lab our cost is much lower than the America, therefore the production costs could be much lower than in America.It is logical. The high rate of U.S. unemployment is due to high technology and automation and not cause by the Chinese imported products. Regarding the trading deficit it is due to the fact America is not selling high-tech equipment to China. If the United States is determined to impose the higher import duty on Chinese's products it will go against the rules of W.T.O and will also raise the cost of living of the many U.S. citizens…as well as damaging the good relationship of both country. As such clever American leaders should think twice about it.ee below:
奇怪买家！
一个正常的人，买东西的时候肯定会选择物美价廉的产品，有时为了捡便宜，还要与物主大力杀价、斤斤计较，以便达到折扣优惠的目的。
但美国政府，对物美价廉的中国入口货却不断指责，认为中国是采用津贴及减税出口政策，才能够把大量出口货以低廉的价格卖到美国。影响其国产货的市场，造成工人失业，形成中美贸易不平衡。
美国是世界上少有的奇怪买家，有便宜的货不买，反而埋怨中国货卖得太便宜！还对中国提出警告，如果不改变这种贸易政策，美国政府将向世贸投诉，及要对中国入口货征收繁重入口税。
美国货不敌中国货，是因为美国人民生活水平高，生产成本也跟着昂贵，中国是发展中国家，工资低廉，所以能够生产物美价廉的产品，这是很自然的趋势。
美国失业率高，是因为高科技化和自动化生产的结果，不是中国的便宜货所造成的，对中国贸易入超是因为美国自私和怕输，不肯将高科技产品卖给中国的原因。
如果美国决意对中国入口货征收繁重进口税，不但违背了世贸协约，也将会提高人民的生活费用，使一般平民的生活会雪上加霜，抵制中国货入口也将会影响中美的友好关系，对美国是有害无利的，聪明的美国领导人应该三思而后行之。
12 comments:
Mr Liu,i think you are quite off the mark again with regards to the economic relationship between China and US.
The low cost of production of consumer goods in China has partly helped to keep inflation low in the US and globally.This is particularly pertinent in US as its GDP comprises 70% consumption and its imports from China,Japan and others have resulted in large current account deficits.
The main quarrel the US has with China has to do with the Chinese govt. continued steps to keep the yuan relatively low versus the US dollar.It does this partly by recycling US dollars it gets from exports into the US by buying US dollars and investing these in US Treasuries.
This has resulted in an unsustainable imbalance between the US and China as evidenced by China's reserves of US$1.2 trillion.The issue is how to unwind this imbalance.One way is to increase comsumption in China ie more imports and increase the value of the yuan.
The current financial crisis will put enormous pressure on China's manufacturing sectors,which have excess capacity,that are facing large closures and rising unemployment.This is partly due to US importing or comsuming less and saving more.This unwinding of the imbalance will have huge implication for China.
The current high employment in the US is not due to increase of productivity nor the use of technology but recession that is sweeping the globe.
Robert,
I understand you are not billingual
what you read and knew all from the
English news papers bad report on
China development,therefor your comments were all similar to those westurners,its very pity!
In fact you should learn more from my blog in order to corrects the westurner mistake on China situation. became a China expert you will be able to respect more by the westurn's people.
Regards
ST.Liu
westurn people
Mr Liu,My comments are not "western" oriented as you claimed.
If you have read economic commentaries by Chinese President and the Premier you would have read what I have written.Many of these reports were sent to you.These are not written by western reporters but were reports of speeches by the Mr Hu and Mr Wen.
China has over-capacity in manufacturing facilities there is no doubt and its GDP growth this year and next will fall.The issue is the degree of this fall ie hard or soft landing.There is no doubt that factory closings are being seen at the coastal cities and unemployment is rising.
There is no doubt that there is an imbalance in the current accounts of China and US.Check with any reputable Chinese economist.the fact that China has a reserve of US$1.2 trillion shows this.
You need to open your mind and see reality for what it is and not what you want it to be.
Robert,
You should know that i knew China development situations much better then you .and
no matter what happen to China even
"over manufactoring capacity,GDP giong down, factories closing,
unemployment is rising etc... . the China economics developments will still much bertter than America and others westurns countries.now -a-day.
Chinese people will have more smilling face than wseturners from now on.
China has a reverves of us$1.2 trillions is not enough with the1.3 billions populations
Japan enjoy trade surplus with U.S.for last 30 years why not China
to solve the embalance problams U.S. should either sell weapons and high-tec porducts to China or less import goods from China why
insist China must rise the yuan value unreasonable!causing China loss a lot of money in U. S. bond
Howver,do not go too fas off with my topic i only wanted to advive the U.S. goervnment do not be a
strange buyer otherwise will make Americans lives more difficutys and may damage the two conuntry
relationship!
Regards
ST.Liu
Mr Liu,to solve any international issues one must adopt a balanced view.One cannot always insist that the US take unilateral actions.This is an interdependent world;one problem that occurs at one location will spread to other parts as witnessed by the current financial problem.
One must not only be balanced and also present both sides of an issue so that the readers can decide for themselves.
Sure ,japan has always an imbalance in its current account but the value of the yen has risen quite a lot verus the US dollar.This will help to reduce its trade surplus and therefore its current account.Japan also suffers from its inability to stimulate its domestic economy,particularly in domestic consumption.
In fact the yuan has risen versus the US dollar but in a measured way so that China's products will continue to be competitive.But there is no point having all these products if less people want them as we are currently seeing.Therefore,we are seeing factories in China closing giving rise to higher unemployment.
Robert,
As i told you please stick to the points do not refer the east to catch the west!
My view is just to advive the U.S.government do not levy high import duty on Chinese import googs to make Americans lives more dificutys and create more troubles with China since the new president
have enough promlams to be solved and to be faire do not force China to rise their yuan value further let it be free and determine by the market.
Thout U.S.trade with China was deficit but China has left behind
mostly their money to be used by the U.S.so why should U.S. worry about the trade deficit?
Regards
STLIU
Mr liu,every country must worry about its trade deficit because it means that it imports more than it exports ie spending more than saving.In other words,the country with deficit(on net net basis)must find the money and the pay a cost to fund this deficit.
you must be naive to suggest that chinese yuan is a free trading currency.It is not.Even Mr Hu and Mr Wen dare not say that the yuan is a free floating currency whose value is set by market forces.
Robert,
Trede deficit between 2 country it does not means is the whole nation in deficit, America is surplus all the times with others on trades income.
it is my suggestion that the Chinese yuan should be in free
floating market.
Regards
STLIU
Mr Liu,
the US has a net net budget deficit(after taking into account capital inflows,FDI etc).
If only the Chinese govt.will accept a free floating yuan.This is what the US govt. has been persuading the Chinese govt. to do but to no avail.
Robert,
The national budget deficit and the trade deficit are two diferent matter.
China have their freedom to decide
what they wanted their yuan value to be.
Regards
STlIU
Liu,
The current budget deficit is about US 1.3 trillion,inclusive of trade deficits,capital inflows etc..
It has a current account deficit of about US 700 bil or about 6% of GDP.
I think you do not understand the figures.
Robert.
Sorry sir I know the figures better than you do.
Please do not confuse the national treasury deficit with the trading
deficit.I said though U.S.trading with China is in deficit position but
China has retain most of their money to buy U.S. bond just like you buy
my goods I buy your bond.. so in fact America is gaining
Whereas the national treasury deficcit is due to expenditure more then
revenue ,there is no thing to do with trading its very easy to understand right?
Robert
2008 U.S national budget was more than 400 billion deficit plus President Bush
700 billion rescue plan with another rescue plan of 1000 billion by
Obama the new President that is the real cause of the U.S.
deficit budget in 2009.
ST Liu
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