The appreciation of Yuan will have impact on all countries not just US. Even if Yuan appreciate 40%, US would still compete with Japanese electronics, German cars. However, Yuan is undervalued, I will say that. A more sensible response to the undervalued Yuan would be that create a downward pressure to devalue their currencies for all major nations and that hurt US economy. Also China has been reaping exporting benefits for the last 30 years or so. Now it is the 2nd largest economy in the world and it's time for it to be responsible to the world economy. Instead of focusing on sucking up global demand by manipulating Yuan , how about focusing on restructuring economy, boosting domestic demand and let the wealth accumulated spread to the Chinese. This in the long run will benefit China tremendously too. There you have it.
I agree and letting the Yuan appreciate will allow Chinese to buy American and other imports at a cheaper price and thus let their standard of living rise. So the U.S. is actually doing a favor to the Chinese people by trying to push the value of the Yuan down to it's proper level.
I haven't heard of patent transfer. I do know that China wants tech specs and plans when companies bid on things like power plants and reactors. But that's called negotiation, not some illegal maneuver. (breaking those patents are)
Here's your negotiation: http://www.kiplinger.com/businessre.../china-rolls-up-welcome-mat-for-us-firms.html
^^^ I just cannot fathom the broad implication of such a draconian Chinese rule on patent transfer. There has to be a context of the rule. I am not an expert on this, but my guess is that the patents Chinese authority demanded are those that reap most of their economic benefits in China. E.g. Ford are selling certain models of cars exclusively in China. This is a market for technology move on China's part, which is smart. I think other developing countries have similar policies, such as Brazil, India. So in that light it is not such draconian, if you believe there is technology divide between the developing and developed countries due to uneven economic development. US was world's largest pirate until later 19th century. China seems to be playing the same game.
Whatever justifications are made for it, I think the U.S. is in the right to consider it hostile practices and consider it barriers to market. U.S. business are moronic if they give away their technology to Chinese companies which can then turn around and reproduce it for cheaper and then export it and run them out of business.
I see a deep protectionist in you. Where is the free competition spirit this country is about? It's not so much that China will acquire the technology. Knowing the technology is nothing because patents are published anyways and we know there is an enforcement problem in China. China rather wants the know-how and willing to give US market access in acquiring such. If US could always stay a step ahead of China, this ain't a bad deal.
LMAO. I've seen this bullsh1t line repeated at least 10 times in this very thread by you and still haven't seen a wee bit of proof. To start, why is it that the US is "trying to make the field even" when it is the one that, as I've mentioned n o less than 3 times, and haven't received a response, that it is the one printing massive amounts of money such that its currency is down over 35% against a trade weight basket since the 80's. Sounds to me (and pretty much anyone with half a brain) that the Chinese are the ones trying to level the field. I have an interesting article for you, from yesterday. The second bolded portion pretty much highlighted why Paul Krugman pretty much lost all credibility when it comes to this subject. So summarize, Krugman is accusing China of manipulating the currency while at the same time having the US and Europe print pretty much massive amounts of it (which he has for some quite time). Hear Hillary Clinton demanding the Chinese clarify their position on rare earth? I think Wang Qishan should be demanding that Krugman clarify his position. In other words, he wants competitive devaluation here? http://www.bloomberg.com/news/2010-...duce-ecb-surrender-as-fed-weakens-dollar.html
Pot, meet kettle. I think this is rather ironic, considering the US government has restricted purchases from China in anywhere from PC's to network switches to apparently berets and flags. The next time some idiot in Congress pull out the Ren Zhengfei with "Red Chinese Army ties" will be the 165,606,801,567th time.
Not at all, if China opened her markets I'd be all for free trade. But it takes two to tango. I am not naive or silly enough to give away anything for free. that's how people get screwed. China wants our technical know how so they can produce things cheaper and flood our markets and take over the industry. I'm sorry, what you are asking the U.S. to do is commit economic suicide.
Oh please. Your own silly country refuses to open its markets to China. Remember Unocal? Remember Huawei? Nope, don't think so.
Refusing to let Chinese buy American companies is a big difference from preventing Chinese goods from being sold here. We buy a lot of crap from China. Why won't China let us sell our crap to her?
This is a gross overstatement. China is one of the most open economies, if not the most, in the world. I think 65% of its GDP comes from export and import related activities. Compare that to US's 8%. Chinese manipulation of Yuan isn't WTO incompatible. You just can't say China isn't engaging in free trade by the rule at all. China is actually very careful with its international trade conditions. Now don't get me wrong. Chinese manipulates its currency, no doubt. But there has to be a propionate response to it. I think your thoughts represent many Americans' on this issue. Politicians in Washington either don't know very well or know too well by seizing such sentiment. At some point, bluffing on the US part will lose all its force if what's threatened doesn't seem realistic for its own interest. This is a dangerous line. Two things are clear, 1) China doesn't want to be pressured into another Japanese Plaza accord where it will face huge problems of even more asset appreciation 2) China doesn't want to be another victim of 1998 style monetary crisis. Against these two huge debilitating consequences, China might as well respond "so be it" to the US trade w/ China. Then what. Would US carry forward? The bottom line US wants Yuan to appreciate but a threat of trade war with China is not the way to go about it because it doesn't make whole lot economic sense. That's why I predict HR 2378 will be killed in the senate.
Demand and supply sweet peas. The "crap" that China sells in the United States is being demanded by some people of the United States. The "crap" that the United States wants to sell in China is not in demand by even "some" of the people of China. Except maybe Apple Iphones, Caterpillar machinery, Boeing airplanes (hopefully Airbus boots Boeing out of China) and chicken legs (oops, tariffs have been applied on them). An open economy is an open economy. Regardless of whether the form of economic activity is selling of "crap goods" to one another or buying the companies of one another.
Plaza Accord...98 Asian Financial crisis... The average American doesn't know its context. The American currency and economy is a complex issue, but it boils down to the American consumer borrowing and spending like a junkie who, similar to housing prices, assumes that interest rates will always stay the way it is now. China bending to the desires of the American companies and elite doesn't solve our long term issues. It's a bigger scapegoat than people think even if there are areas where China should improve. Contrary to popular dogma, American manufacturing does not need to collapse because of Chinese/Asian comparative advantage. It's just that it's easier to sell that route because of political and social hurdles at home. Unions and regulations do play a role in that.
Indeed. That's why in China, Intel becomes Chinatel. Coke becomes China-cola. Microsoft Windows become China-windows. Ford becomes Chinord. And then using their cheap labor, China has since flooded the US market with their cheap knockoffs of these American brands. That's why we see Chinese brand everyday on the street. Brands they extorted from, spat out, and replaced with their own cheaper brands. Wait, are we discussing China or Japan of last generation?
I like how you combine imports and exports, why dont you break it out and then let's compare how much the u .s. imports to what china imports. and the 1997 Financial crisis was the OPPOSITE of what's happening now. The Thai Bhat collaspsed because of foreign debt. The currencies tanked, not appreciated. The U.S. is the country going through a financial crisis, but China is preventing our currency from devaluing which is what it needs to do in order to restore balance. As for the Plaza Accord, that was in the mid 80's....and the cause of Japan's economic collapse was a bubble, not a result of currency being let to float against the dollar. It was speculative bubble bursting. Letting China;s currency float isn't going to wreck her economy, it's going to make things balanced. Pegging it against the dollar is what creates problems.
