STATEMENTS & RELEASES
[SIZE=7]Statement by the President Regarding Trade with China[/SIZE] FOREIGN POLICY
Issued on: June 15, 2018
My great friendship with President Xi of China and our country’s relationship with China are both very important to me. Trade between our nations, however, has been very unfair, for a very long time. This situation is no longer sustainable. China has, for example, long been engaging in several unfair practices related to the acquisition of American intellectual property and technology. These practices, documented in an extensive report published by the United States Trade Representative (USTR) on March 22, 2018, harm our economic and national security and deepen our already massive trade imbalance with China.
In light of China’s theft of intellectual property and technology and its other unfair trade practices, the United States will implement a 25 percent tariff on $50 billion of goods from China that contain industrially significant technologies. This includes goods related to China’s Made in China 2025 strategic planto dominate the emerging high-technology industries that will drive future economic growth for China, but hurt economic growth for the United States and many other countries. The United States can no longer tolerate losing our technology and intellectual property through unfair economic practices.
These tariffs are essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs. In addition, they will serve as an initial step toward bringing balance to the trade relationship between the United States and China.
The United States will pursue additional tariffs if China engages in retaliatory measures, such as imposing new tariffs on United States goods, services, or agricultural products; raising non-tariff barriers; or taking punitive actions against American exporters or American companies operating in China.
Just read the bolded part. That’s the real strategy of this dumbfuck; to sabotage China’s Vision 2025.
But that is like “kuzuia ndovu kunyia, huwezi!!” i.e. you can’t stop an elephant from taking a dump, it will just shit on you instead.
What the low IQ Trump doesn’t understand is that the ship sailed a long time ago. China is the world’s largest economy by Purchasing Power Parity (PPP).
These moves he’s pulling now should have been done in the 1990’s when China was vulnerable not now.
Nobody forced American corporations to manufacture in China.
They did so because all they care about is the bottom line and they don’t give a fuck about the American people. Neither does your government, but that’s another debate.
The fact is that China retains none of the incremental profit from cheap labor manufacturing. They benefit from employment and a small (10% or less) margin for contract manufacturing.
All the profit gets siphoned off by US Corporations using transfer pricing and various IP fees to tax havens such as Cayman Islands, Bermuda, etc so as to avoid paying US taxes on the profits.
US Companies impacted by tariffs will now simply move manufacturing from China to Vietnam, Bangladesh, Thailand, Indonesia etc. and will not return manufacturing to the US.
I was watching Ted talk, where the guy from the US was talking about the issue. The thing with China and the whole East Asia economies were very strong more than 2000years before… Because of population and production and the ‘normal’ is returning back. After occupation, colonization and all those negative past that had interfered with previous human existence. The normal is setting in and the West can not comprehend a world where the standard is not westernization.
The double speak is amazing they have no objections when then set huge trade deficits with lesser developing countries like the one African is left with them but set treaties that make sure they can’t impose tariffs.
Africa in the global play in my opinion are way behind. Yes US may try… And the key word here is Try to fight off the China 2025 vision, but the thing is already on course or flight. China already has the market internal and the other three continents. But Africa better continue giving up it’s resources for cheap, that is all it’s good for.
You nailed it. America’s root cause of economic problems is their high labor costs. Period. They will never solve that problem until there is a massive mean reversion of their salaries towards the global average. Their corporations will always prefer to manufacture where labor is cheapest. If they can’t work in China, they will just relocate to the tens of other poor nations where labor is cheap. In 20 years, there will either be very many jobless Americans, or their average salaries will not be as high above the global mean as they are today. Something has to give.
It’s so pathetic that Trumptard fools think these “jobs are coming back”
They will only come back if Americans workers take a huge pay cut. At what point do tariffs justify manufacturing in the US, keeping in mind that there’s still Vietnam, India, Philippines, Indonesia and other cheaper labor countries where these tariffs won’t apply ???
Amazon bills itself as a creator of jobs, but according to public records five states listed Bezos’s empire as a top beneficiary of Supplemental Nutrition Assistance dollars.
The issue of Amazon workers relying on food stamps may be more widespread, as this news only represents the data that’s been furnished publicly so far. But in Kansas, Pennsylvania, Washington, Ohio, and Arizona, Amazon is among the top 20 beneficiaries of SNAP—and in Arizona things are particularly dire, with one out of every three Amazon employees needing food stamps to eat.
One thing you forget is the American consumer purchasing power. Paying an extra 2 dollars for an iphone manufactured in the US wont hurt the American consumer. And labor costs are just a percentage of the overall price of a commodity. Unemployment will not cross 6-8% in the US in the next 20 years. The economy is too dynamic.
The average American consumer is still rational. He will save a dollar whenever he can. If a product is working, he will save money and ignore a “made in America” expensive label. Just because they have a high purchasing power doesn’t mean they aren’t rational. Also, the type of products exported to the USA usually match American standards, otherwise they wouldn’t pass through customs. They are not the same products we receive here in Africa from China.
Hii figure umetoa wapi jameni? Alafu companies moved to get cheaper labour for their own benefit, not to make their produce cheaper. If it’s up to them, they’ll get as cheap labour as they can and sell as high as they can.
Many Western and American manufacturers initially went to china due to cheap labour, the situation has changed, they are staying there to access the more affluent Chinese market with 1.4 + billion people. The American companies will continue to make profit from the Chinese consumer but Chinese products entering the American market will be limited and more expensive. This means America has an edge.
Chinese owned manufacturers will probably do what Western nations have always done; establish factories in countries, especially third world countries, with a large export quarter or without a high tariffs and export from there as source of origin. If they come to Africa that may be a starting point for manufacturing skills transfer.
