US Autos Dig Their Own Grave
Once again I am going to use the automotive industry to illustrate the threat that is posed by communist China. This time National Public Radio has done a surprisingly good piece on the American automotive industry helping to dig their own graves, by moving production to China.
First let’s start by saying that the automotive parts and automobile building industries of the United States have in the last decade been moving production to China in order to save on costs. It was an obvious decision when you see that the average Chinese worker makes $1.50 an hour. In a free market system this is going to happen, but what China is doing is using its ability to control every facet of the economy to force strong US industries to build up weaker Chinese ones.
In the automotive industry, that is requiring international companies to setup training and research centers in China in order to be given permission to produce and sell parts or cars in China. This allows the PRC to receive home grown automotive workers and engineers that it never had before, yet that possess the latest industry knowledge and know-how. In addition, they get a modern, upgraded production infrastructure that will soon allow them to build their own vehicles that are similar or even better quality wise then foreign producers.
It is China's goal to make the automotive industry one of the pillars of their economy. They wish to be able to not only sell Chinese cars in China, but sell Chinese made cars in foreign markets. Even though, they only had $8 billion in foreign sales, the PRC envisions Chinese companies ruling the Auto industry in the near future, and it is using American producers to achieve this goal.
The only solution that I can see is removing China from trading in the free market system and using protective measures (i.e. tariffs, quotas) to defend home industries against competition of the Chinese. They should only be allowed to reenter the free market system after the Communist party gives up its control of the economy, or else the free market countries will never be able to compete with China.
First let’s start by saying that the automotive parts and automobile building industries of the United States have in the last decade been moving production to China in order to save on costs. It was an obvious decision when you see that the average Chinese worker makes $1.50 an hour. In a free market system this is going to happen, but what China is doing is using its ability to control every facet of the economy to force strong US industries to build up weaker Chinese ones.
In the automotive industry, that is requiring international companies to setup training and research centers in China in order to be given permission to produce and sell parts or cars in China. This allows the PRC to receive home grown automotive workers and engineers that it never had before, yet that possess the latest industry knowledge and know-how. In addition, they get a modern, upgraded production infrastructure that will soon allow them to build their own vehicles that are similar or even better quality wise then foreign producers.
It is China's goal to make the automotive industry one of the pillars of their economy. They wish to be able to not only sell Chinese cars in China, but sell Chinese made cars in foreign markets. Even though, they only had $8 billion in foreign sales, the PRC envisions Chinese companies ruling the Auto industry in the near future, and it is using American producers to achieve this goal.
The only solution that I can see is removing China from trading in the free market system and using protective measures (i.e. tariffs, quotas) to defend home industries against competition of the Chinese. They should only be allowed to reenter the free market system after the Communist party gives up its control of the economy, or else the free market countries will never be able to compete with China.
posted by Aleksandr at 11:39 PM
1 Comments:
Don’t wary about this issue. The technology they getting is American. There fore it will be crappy cars. As long as there is no Japanese car R&D center in China, we will be safe.
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