In china, if you want to to buisness in china you have to employee chinese and buildout in china. In china there is a buy china policy, if you want to buy something for the chinese government it has to be made in china and preferably it has to be a chinese company. There is a huge list of things China is doing to insure jobs stay in china. But why is it that we do nothing about this, ie such as a tariff on chinese goods since they are not playing fair when it comes to free trade.
They also don't allow dual citizenship. If your looking to open a business, it's going to have to happen in a second tier city. If you open a business you have to deposit something like $120k in the bank of China to "ensure the survival of your business." If you want to bring in foreign workers, or workers from your country if you are a foreignor, the job has to be something a domestic chinese person cannot perform otherwise you have to hire chinese. There is a whole list of rules but those are the ones that really stood out when I read up on this a year ago. Is this free trade? It's more like soft protectionism. As long as they produce cheap stuff and the politicians can be bought, this will continue on.
The Chinese government is doing a good job on the self preservation of their economy. I guess it is why they are labeled as the sleeping dragon.
It seems like most people on this site believe that the Chinese model of self-preservation is/ would have been the answer for the US. ...rather than outsourcing all of our jobs and hiring workers overseas. But eventually...won't the Chinese depend upon the economic health of the rest of the world too? Outsourcing appears to hurt the US in the short run, but when it's allowed to follow it's natural course, over time, isn't it better for the world and ultimately for the US in the long run? I really don't have any answers here, I'm just trying to stimulate the debate.
That is an incorrect fallacy. Work in china means the money circulates in china, so the Chinese buy the goods they make and it circulates in their economy. What we do is unsustainable, We offshore as much as possible for short term gains which means we import goods and services and export debt. This would be the equivalent of someone borrowing and borrowing to live a lavish lifestyle but eventually the credit spigot closes. What would come next is a sudden collapse and 30% unemployment, but I still see that 10-15 years in the horizon. The Chinese plan for a 100 year or more horizon. China believes in protecting china and its interests. Americans plan for a 3 month horizon. America is still busy worrying about protecting the world and protecting private bankers at the expense of the whole country.
Because Wall St can sell your ass to them and get rich skimming a cut. Then they say "If we don't award big bonuses, all our talent will leave the U.S.!" Let them go to China - where they will execute you if they find you guilty of committing fraud (and they WILL find you guilty).
Median income in China is $6,600 per year, vs our $46,400 per year median income. In an hourly rate that breaks down to us making $23.20 per hour. The average chinese makes $3.30 per hour. In the U.S. if you work part-time at mcdonalds earning min wage, you are doing better than the average full time employeed chinese guy. Even our unemployed make more than 3 times what the average chinese citizen makes. Now...tell me again that their economy is doing much better than ours.
The reason the wages in the west are higher is because of reserve currency status. People buy dollars because of the stability they have (due to oil trade) providing safe returns. This makes the dollar more valuable and in return makes the purchasing power greater. Due to the high demand for dollars it makes the american economy look as though it produces more than it does. Not that they do not create a lot but the disparity in wages is partly due to this. In short in terms of actual resources and production china is not far behind and improving. If the reserve currency changes to the yuan then you will see a reverse.
Weath of a nation is a byproduct of initiative, inventiveness, hope, optimism, and faith. Reserve status has nothing to do with it. People of China knows how corrupt their government is when it comes to controlling business...this destroys hope, optimism and faith. Inventiveness is lacking in china too. We tell china what to make for us. They counterfeit everything they can because they dont know how to invent anything themselves. If reserve status had anything to do with it, then why isnt canada paying much lower wages? Dont say because they border with the US, because mexico also borders with us and they make very little. Per capita GDP for Canada is $38k per year and Mexico is $13k per year.