Friday, April 08, 2005

Europe in Trouble?

The Europeans after courting China and criticizing US on its attempts to cut its trade deficit with the Middle Kingdom now are worried about China exporting textiles to Europe. Europe has just passed a bill that would warn them when the Chinese imports of textiles increase too much. This warning will trigger investigations and private consultations with China. What Europe forgets is how it criticizes the United States every time it tries to protect its domestic manufacturers, but now that European manufacturers are in danger it’s a whole different story.
This rush to get on top of Chinas textile exports is do to the abolishment of the world’s textile import system. Now that the quotas have been abolished sellers are obviously going with the super cheep Chinese textiles. This means that all the world producers that were used to having a guaranteed need for their textiles are being pushed out of business. It would be alright if this was happening in a fair system, but communists Chinas ability to use dictatorial government action to keep employees unorganized, uninformed, and highly underpaid allows it to destroy any competitor that it comes against.
Until China frees up its protectionist policies there should be no reason why the rest of the world should be stopped from protecting its manufacturers.

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