From the Financial Times.com:
China will impose retaliatory duties on US car imports in the latest sign of trade friction between the world’s two largest economies.
In a statement, China’s commerce ministry said on Wednesday that it was taking action in response to damage to its car industry from US “dumping and subsidies”. The move will affect several larger vehicles popular in China, including sport utility vehicles made by Germany’s BMW and Mercedes-Benz brands at their US plants. Shares of BMW and Daimler, which owns Mercedes, fell 5 per cent and 3 per cent respectively on Wednesday.
China overtook the US in 2009 as the world’s largest vehicle market, and sales there account for a substantial chunk of profits for BMW and Mercedes, who build the SUVs they sell globally in North America.
So as a result, what are “foreign” manufacturers doing? They’re building factories in China for their vehicles. GM, the largest seller of “foreign” cars in China, builds almost all of its vehicles on Chinese soil. Employing Chinese workers in the plants. Employing Chinese to build the factories themselves.
I say: quid pro quo. China wants to break into the US market with its vehicles. I recommend a good 20% tariff on their conveyances as well. It’s no secret that Chinese automobile showrooms will be opening up within another year or so on US soil.
Quid pro quo: if the Chinese want to sell cars here, they build their factories here using American contractors, materials, designers, plumbers, electricians. Then they staff those factories with American workers. Because, after all, just what is it that the Chinese haven’t stolen or hacked or reverse-engineered from the US?
In the meantime, China’s new aircraft carrier — a true Blue Water (not littoral) ship — was captured via satellite in trials on the Yellow Sea.
The former Soviet carrier known as the Varyag (keel laid as the Riga) now carries a Chinese flag after having been purchased for $20 million dollars at auction by a civilian front for the Chinese navy, then towed to China. News indicated its bulk was meant to be “only a casino.”
At 1,000 feet and 68,000 tons, the carrier — likely named Shi Lang — will be the first major extension of Chinese sea power.
As was said in the 60s: “ass, gas or grass; nobody rides for free.”
Another axiom immured in stone: you can count on the Chinese to lie.
BZ
Same as every other country on the planet. There’s a leadership void here in the land of the shining light on the hill. We are down in the dumps, divided as a nation and in debt up to eyebrows. Sacrifice is a word that has lost it’s meaning.
China will be our daddy soon. The dept of education in this nation is as responsible for this as any elected official. We have spent so much money educating others, and allowing our students to be sub-par to make some folks feel good… We on the right saw this coming. We yelled and screamed but were not listened to. Time to pay the piper.
I’ll tell you something BZ the best possible thing that could happen to us right now is to be attacked by China or Russia. A trade war, a real war something very drastic needs to occur to wake our citizens up.
California=Obama’s second term… read it at my place very truthful article.
I wouldn’t mind if Americans bought Chinese product without import tariff. The Chinese would be taking pieces of paper for their product. (More accurately, the Chinese would be taking electronic pulses representing pieces of paper for their product.)
Lets go ahead and raid their pantry while we can.
America’s big problems will subside when we stop looking to government to solve them. Imposing a tariff is viscerally satisfying, but not really wise policy.
Thank you for letting me bloviate.
Robert: China probably WILL be our Daddy soon, at this unabated rate.
Bob: “America’s big problems will subside when we stop looking to government to solve them.”
TRUE!
BZ
And thanks for taking the time to visit, BQ, and thanks for commenting. Please return frequently.
BZ
I say, “Bring It”.