It will hurt the US teasury as much as the chinese government. Just think if US default on Chinese Debt, who else will buy US Government Bond? what kind of retail interest rate will US be facing? Forget subprime if the default happened, US will have a bigger problem
I'm sorry...but I don't believe that it's the Chinese themselves are responsible for building the specific export controls that are needed by US and other world manufacturers. It's the same thing as anywhere else...if the logistics and control of exporting and government benefits are correct, then a place can end up making itself a business hub. Do you think Taiwan, Phillipines, Costa Rica, Mexico, etc. are incapable of exporting things properly? Of course not, totally capable of it. The problem with Africa is more governmental and geographical, at least in distance to the US. The Chinese had a price that WAS good. They've been artificially holding back prices in order to remain in favor. The tariffs are past due. They won't work long term because of the dumping law, but they're a damn good start. I'd personally rather see us doing manufacturing in Mexico or other parts of Latin America. It's close, it's fairly cheap, they're our neighbors. And Civic is Japanese and BMW is German.
Just an example about demand for cheaper items, mate. Korea or Japs, not differences, if you can afford it you would buy a better car (think retail market, let's don't augre this.) Blast, great companies take times to build, same for the logistic side of a country (again, materials, and transport), labour cost is just one of the factor. Other countries will take a little more time to catch up, I think you would agree. HK companies are moving around China for lower labour cost and materials (farbic and paper around the Shanghi region and North East), some of them move out of china, such as the Garment Industry (traiff). Ex-workmate used to work for one of the largest OEM manufacture for GE indoor wireless phone (and my ex-employer was selling them packaging, LOL), the firm built a production line in Mexico (closer, faster response) and they couldn't run it, maybe it's a cultural thing on the management side, maybe is the labour (too many Taco?), it just didn't work out. Taiwan, if you think there are still lots of manufacturing in there or their wages is at the same price as china, then god bless you. Taiwan's wages is at least 5 times that of china. Most major Taiwanese companies have their plants in China. HK and Taiwan lost their manufacturing to China in the late 1980s. Blast, you are correct that China's price WAS good.. LOL, I was in manufacturing myself, our paper products were properly one of the most expensive in South China. Back to the point, some industries could be displaced overnight, some could not such as electronic assembly. Skill level and price of the work forces couldn't be build overnight. Anyway, it's not easy to buy elsewhere right at this minute, China knows it, the US knows it, other countries know it and they will play catch up. China will move to someother things, just think about how Japan and Korean done with their economy. Blast, if it is racial thing, then we are not talking about economics rite? I am just trying to be fair in my comments, and I hope you do so too. To my mind, the only way for China manufacturing to stay afloat is to move on to stuff with more techology contents. Same that Japanese, Korean, Taiwan, Hong Kong had done in the past.
Willeugn. Please don't take offense, but I can't understand any of what you're saying really. It all seems washed out. It's clear that English isn't your first language and I'm having a hard time understanding anything you're trying to say really. One thing I did understand is that a place like Korea's labor is 5 times or more of that of China. That's a lot compared to China if you're using a base labor rate and final product cost in the Chinese economy. But if you factor in the price difference in the end product if it were made in Korea or Mexico, while it will no doubt be more expensive, the consumer wouldn't know the difference if China wouldn't allow exploitative pricing. It's truly a race to the bottom. My point is that I'd rather pay more to have it made somewhere competitively and where there is a better balance between the workers and the end product. The government in China has no problems tossing aside people for money or power. I think that's something most people believe to be true and I know I do. I think if it weren't frowned upon, Chinese politicians would happily cheer slave labor. I'd take a Honda over a VW or a Lexus over a Mercedes anyday. No question. Cheapers cars are sometimes better. Please don't take offense to what I said about miscommunication...but I can't really understand any point you're attempting to get across.
Blast, am I suppose to felt insulted now? My point is you can't replace China industry overnight, you like it or not, the US will still be buying craps from China in a few years, because that is what the US consumer can afford. In the real world, people don't care about labour condition, political motives, they just want to spend less and buy more. :eek: I hope you can understand my poor english... LOL
This is a tough call, you might be correct in someway. But remember most other developing countries can't make shit, evening compare to china China is not Iran, Blast, we don't capture soldiers to rise the oil price. It's a place for business, if you want cheap goods at a certain quality, go to in china. If you can afford to send a satellite into space China will do it to, they have been do this for the last decade...
Will, I'm Chinese and I had a hard time understanding your post before this one, too. You're pointing out the obvious though, of course it is physically impossible for all manufacturing to move outside of China over night unless someone invents some sort of time-dimensional insta-warp thingie. From my business experience in Shanghai, this migration of labor based manufacturing outside of China into Vietnam, Phillipines, Indonesia and others had begun about 2-3 years ago. It will just be a matter of time before people in these other developing nations learn English and China realizes that it needs innovation to keep up.
Who said you could replace China overnight? It would be ludicrous to think so and I never said anything of the sort. You're not the first one to realize that. People can afford better btw. Americans buy a lot of shit they don't need...we can afford high quality things we NEED and much of what we WANT...but to assume that the majority of Americans couldn't afford a good lifestyle or something like that if we bought from Taiwan or Mexico only would be silly. I understood your English better now. Your English in the prior post was very hard to understand. sorry.