Quote:
Originally Posted by Shotsie
We could also formally label China a currency manipulator, and encourage the rest of the world to do the same because China is destroying the world economy right now by undervaluing their currency in order to get an unfair price advantage on wordwide trade, and after all, we're the ones that buy all their cheap shit. Impose import duties on Chinese goods to balance that out. Not to mention the rest of the downright criminal business practices they engage in like intellectual property theft, exporting shoddy goods like toxic drywall, lead painted toys, etc. that they're NEVER sanctioned for. What China is doing right now is economical warfare and should be treated as such
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The subsidies that Chinese manufacturing have received from their government is unreal. The government carries a big percentage of raw material costs. Energy costs are almost nothing. The government grants startups money to buy specific machinery.
Even today, there are parts we buy from China that are cheaper than the raw material costs here in the US. And that includes shipping.
On the infrastructure side,they look the other way when it comes to employee safety,environmental protection,wages.insurances. There is no way possible to really compete against that. All we can do is wait it out until China becomes a consumer nation.
Or impose serious import tariffs. And based on the history with Japan and Taiwan, that's not going to happen.