This is the problem with CHINA. CHINA can attack others any time they want and anywhere they want, but others can't do the same thing to CHINA. It's all about POWER and MENTAL & PSYCHOOGICAL SUPERIORITY.
Did you expect anything different from a Communist country? Their government has been a constant source of control and suppression way back to Mao Tse Tung.
hmm maybe they see us as weak all of a sudden...
Yep this one is disturbing. Looks like China has found a great time to flex their muscle. While our democracy and economy have a really bad case of swine flu !
I'd wondered how long it would take China to flex their muscles. They could have picked a better time, though. While one would think that the ongoing economic problems in the US would make this a perfect time to put pressure on the US, that's short-term thinking.
Sooner or later the economic problems in the US will work themselves out. It's just a question of how long it will take and how much or how little those in power will interfere in the process. Once recovery starts, China may not be guaranteed the special relationship they had enjoyed with the US up to this point. There are, after all, many emerging countries who would love to supply the US with cheap goods.
Or the US leadership might do the smart thing and enact reforms that will encourage a domestic manufacturing industry. In that scenario, the US will produce cheap goods for export around the world. A secondary benefit is that as producers of inexpensive goods, US citizens will enjoy a higher standard of living. Materially higher at any rate.
In the final analysis, China is insane to be doing this to one of their largest trading partners. Trade is the only thing which will fund the military China needs to impose its will on the world and they are woefully deficient in naval power. Projecting naval power is still the only way to become a Great Power in the world, nuclear weapons notwithstanding. It could be that they seek to use economic force rather than military force, but I can't think of a single instance where such a strategy has been successful. By threatening the US, they've just raised the stakes that the US will repudiate its repayment obligations and China will just have to suck it up and deal with it. All in all, a very bad time to do such a thing.
I don't think there are any plausible reforms that would make it cheaper to assemble furniture in the US than China, and I don't think we would really want them if there were. Going backwards is not the way forward. In time, China's economy will mature to the point that something resembling competitiveness will emerge, but that is a long way off. We need to find ways to grow within the global economy, not waste our energy trying to push a river back upstream.
I think China knows what they can get away with. After all Obama did bow to the Chinese Premier.
"I don't think there are any plausible reforms that would make it cheaper to assemble furniture in the US than China, and I don't think we would really want them if there were."
No Sab...no reforms.
However, it is far cheaper, in the long run, to make goods in Mexico...and the maquila's have exploded since the passage of NAFTA...
Japan and South Korea by far lead the way, after the United States, producing in Mexico, even goods that claim to be "made in the U.S.A.".....and Chinese corporations are getting into this big time...
Additionally, the power of the U.S. Chamber of Commerce in China offsets the "threat" of China...this is a matter of pull economics....it is the market-place gravity of Walmart et al that drives a huge percentage of Chinese production...and Walmart controls its producers....
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