China Overtakes US as Supplier of IT Goods
Ant writes "CNET News.com is reporting that 'after almost a decade of explosive growth in its electronics sector, China has overtaken the United States as the world's biggest supplier of Information Technology goods, according to a report by the Organization for Economic Cooperation and Development.' From the article: "The most spectacular demonstration of China's ambition to become a consumer electronics heavyweight came in May this year when Lenovo, the Chinese computer maker, paid $1.75 billion to buy IBM's personal computer unit."
... welcome our new chinese overlords. Better than the old ones...
if only their government didn't suck ass, they could be so great. they have immense cultural momentum, a well reasoned and disciplined populace, and a penchant for churning out intelligent people.
The day IBM sold it's PC business, this was only to be expected...
In other news, India overtakes the US as the leading Supplier of Software Services... not too long either.
If you keep throwing chairs, one day you'll break windows....
China has nowhere near as many IP lawyers protecting their "valuable intellectual property" as the USA.
Frankly, after the shootings the other day in China I wish we'd stop doing business with them. Our relationship with China is nothing to be proud of.
think again
Wow... a Pentium II? I suppose that's pretty advanced, but I honestly thought they would be able to produce something better on their own.
Heh.. maybe you guys can now do outsourcing for China !
From the article:
Also, China's efforts to impose its own technology standards across a range of consumer products, including mobile phones, digital photography and wireless networks, are widely interpreted as a strategy to dominate the global market for information technology goods.
That approach will probably serve them quite well within their own borders, but I don't see how they can hope to impose their own standards on the rest of the world. There are already standards (e.g. 3G) in place across the globe, accompanied by hardware produced by manufacturers in several countries. The Chinese standards would have to displace the incumbents (so to speak) and become widely adopted by those same former incumbents. It sounds like a very difficult - if not insurmountable - obstacle.
I want to drag this out as long as possible. Bring me my protractor.
...is pretty straightforward, actually. Thanks to unions, US labor costs are WAY more than the market ever could bear. A similar situation is happening in the US automotive industry; the only reason it's not in the same boat yet is that industry moves so much more slowly than tech.
The really amusing bit (I guess, if you're not living in a country where you can't get good jobs anymore) is that if a group of companies got together and used the same tactics against the people who paid them (i.e. consumers) that unions use against the people who pay them (i.e. employers), the companies would get slapped down so hard with anti-trust, collusion, etc. suits so fast the press would barely have time to breathlessly report the victory for the people. I'm at a complete loss to explain how unions get away with it.
JP Morgan and some other firms are now outsourcing finance positions to India for the first time. If the US doesn't wake up and go for FAIR trade, FREE trade will cut all of our collective throats.
46. The Hobo smiles, his eyes glaze over, and he burps. "Beware the man who has lived longer than the Wasteland."
I wonder what selections the party has made for my viewing pleasure today?
~S
From a manufacturing base with huge exports of cars, military goods, computers, electronics and so on, to a services based economy.
Companies like GM, Ford, boeing are all being overtaken by European and Asian counterparts such as Airbus, Mercedes (who of course, recently took over Chrysler), Toyota and so on. Traditional industrial areas such as Arms manufacturing have been undercut by the European weapons giants FN and Heckler and koch, (the designers and makers of the next gen US army replacement rifle that will soon be replacing the M16.
IBM going to China, Chrysler going to Germany, Ford and GM opening plants in Mexico and Canada. America does not actually make that much stuff anymore (Germany remains the number one exporter in the world with China a close second).
But does that matter, is it no longer profitable for companies like IBM or GM to make product in America? Is the real money in IP, like with Microsoft, or with American Pharma giants like Pfizer? Or how does that explain companies like toyota opening up manufacturing plants in America? How does a service based economy provide the jobs necessary for 300 million people?
Sadly, Lenovo now having IBM's computing line is making me look at ordering an old Thinkpad off Ebay rather than a brand-new shiny silver one (yes, they no longer come in just matte black, unfortunately)
It's not because a Chinese company is building this computer line, and we've all heard the cliches and stereotypes of Asian-quality products so I won't go further into that. It's the fact that IBM gave all the work on their Thinkpads and Thinkcenters to someone else, period. I know it was part of their big paradigm shift or whatever buzzword it is, but they made the choice for themselves. I'm all for China's economy and tech economy improving, but IBM selling out leads me to question the quality of their future products.
Soon we will be their customer support function - 20 years, tops.
What we have at the moment couldn't remotely be called free trade.
Deleted
our new chinese overlords. Better than the old ones...
I'm not so sure.
I want to drag this out as long as possible. Bring me my protractor.
While the rest of you scream and protest, I for one welcome our new Chinese IT overlords.
I guess giving patents to everyone for everything, lengthening copyright to forever and a day, and criminalizing minor infringements didn't work. Which is funny given that the proponents of this IP regime argue that this is what the USA can make money selling.
Now if only the EU isn't so dumb as to fall for the same rubbish....
When I was growing up in the 80's, there was a big anti-communist thing going on (Most notibly, the great war epic Red Dawn). There was also a big "buy American" movement due to a strong Japanese economy. Now we have a communist economic powerhouse and noone seems to be raising a stink. Why is that? My only thought on this is that with China, US executives are still making money. The Japanese kept everything from manufacturing to management in-house. China just does the manufacturing and leaves the US management to their big salaries. I think you will only see the "Made in China" issue come to the forefront when they start managing everything, thereby screwing the US upper management.
I'm typing this on a 12" Apple PowerBook. Made in China. It's currently charging my 'Assembled in China' iPod. These would be tallied into the Chinese total, though they are clearly 'American' products and the bulk of their profits go to the (shareholders of the) American company.
While the advances in the Chinese IT industry are nothing less than phenomenal, I suspect that it will be at least a few decades before The States is knocked from the #1 position in IT.
In an oblique way, TFA says the same thing:
It is foreigners who have driven much of the growth, with heavy investment from global giants like Intel, Nokia, Motorola, Microsoft and Cisco Systems. Figures from the Chinese Ministry of Commerce show that companies that had received overseas investment accounted for almost 90 percent of 2004 exports of high technology products.
Oh yeah - and this OECD study only measures exports, not production. With Americans also leading the world in resource hoggery, American production may still lead Chinese production.
__ Someday, but not this morning, I'll finally learn to use the preview button.
They are doing something about it.
f m
http://www.voanews.com/english/2005-12-11-voa20.c
http://www.livejournal.com/users/metricmusic
I'm surprised we were even #1!
I've NEVER seen ANY piece of computer equipment say "Made in the USA" in the past few years. In fact, I can't even recall any that said "Assembled in the USA". Ditto for Canada (our 51st state, eh?).
Everything you buy seems to be made somewhere in Asia. Usually China, sometimes (for slightly higher-quality stuff) Taiwan, or (for the GOOD stuff) Japan. Occasionally Korea, Malaysia, etc.
With spending like this, exactly what are "conservatives" conserving?
"China is quickly becoming an innovator and, as we know, it has the money to turn those ideas into weapons," he said.
Why is it that commentators and news writers are always paranoid about China becoming a dangerous military superpower, yet apparently noone has a problem investing billions of dollars in the country as well as freely using their cheap labor to manufacture goods? Wal-Mart says about 60% of their goods are manufactured in China. Why all the paranoia if we are so willing and able to use them to make a profit?
He who knows best knows how little he knows. - Thomas Jefferson
"China is like a sleeping giant. And when she awakes, she shall astonish the world." Napoleon Bonaparte in 1803
I think the idea that they are attempting to impose standards is misplaced. I suspect that their main motivation is the desire to have standards that don't involve royalty payments -- at least, not external ones. It's a massive drain on profitability to be paying per-unit license fees on all these things.
Another thing to note about standards is that they are primarily a matter of ubiquity. You really don't have to care what encoding your digital mobile phone uses, or your video disc uses, etc., so long as its quality is "good enough" and you don't run into compatibility issues. Microsoft knows this, and uses their dominance of the desktop as leverage: if they want something to be a de facto standard, they just include it in the next Windows service pack. So long as enough goods are manufactured which support a particular protocol, that protocol becomes a de facto standard.
proof, n. A demonstration that a conclusion is implied by certain premises and axioms.
While it is true, the US was not devastated in WW II, your statement ignores significant other facts. Particularly, the US had a HUGE economic lead before WW II. Take a look at historical GDP/GNP data from around the world. I agree that WW II devastation helped the US maintain its lead, but it started with a big lead, and compared to many (most?) countries grows faster. For example, the US growth rate for the last decade or so has outstripped European growth rates.
So china is doing what they have done for last 20 years anyway, make electronics, except now they are doing from themselves instead of for dell, ibm and others.
We still lead the world in developing new technology. And China has some serious growing problems that they wont be able to alleviate for many years. There is a serious inequality in the number of women for men, there are going to be a lot of lonely men in China. The gobi desert is growing rapidly in the western border of the country and the Chinese government is throwing billions to try and stop the spread. The US and our allies still hold the material cards, as China despite its vastness has to import a lot of material just like Japan does to sustain its manufacturing based economy. China is a growing force to be reckoned with but they are not the juggernaut that the US has been since WWII
I've read a lot of posts about how the US is becoming a services-based economy. I have news for you, the services are being offshored as well. I went to my doctor for my annual physical last month, and while there was a nurse in the office performing the physical, the doctor was on an LCD screen from his office in, you guessed it, India.
Did you also know that there are law schools in India now that teach AMERICAN law and not Indian law? I'm guessing that paralegals and other support functions in Law will shortly be available for cheap offshoring.
I used to think that Medicine and Law would be the last things to go, but it seems I was wrong about that. As I scramble to find a safer profession than Engineering, I'm not even sure where to go. I thought of teaching, and then realized that there are movements afoot to move this overseas, too, with a cheap security guard in the classroom to maintain order and a cheap teacher overseas in front of a camera.
So, while it's not so untrue that America is becoming a services based economy, I think it would be more accurate to say that it is becoming an UNSKILLED or lesser-skilled services economy.
All the elections showed is that the American people preferred one jackass over another. I don't know anyone who really liked either candidate.
Also, the reason there is no major opposition is that most people are just living their lives like they always have. For all the talk about the Patriot Act, few people have seen any problems with it. Bush is diverting vast amounts of money into Iraq and the "war" on terror, but most people didn't see that money before Bush spent it. For the average American, Bush isn't much worse than his predeccesors, unless they have family in the military. They have no reason to support him, but there's not much reason to oppose him either.
Slow down, cowboy! It has been 4 hours since you last posted. You must wait another few hours.
Think about it .. the Chinese are "late starters" to the hi-tech game, and have a bit of an advantage as a result. Look at thier first commercial grade microprocessor, the "Dragon" MIPS chip .. thier -FIRST- generation naitive CPU was a 233mhz big-endian chip.. this doesnt mean they are any more or less advanced, it simply means they were able to take "leftovers" from other companies (in the form of IP and FAB equipment, etc) to have thier first-gen way way ahead of "our" first-gen. If they progress at the same rate as the US/Europe did early in the game, they will likely overtake us not only in quantity but also in quality. Companies in China have a very very serious advantage in that thier economic model permits them to use the "ip" of other companies (chinese or foreign) without many strings attached, so the end result is more developers working on the hard problems and improving whats already there... I'm sure thier Dragon CPU is already in a newer revision, and there are probably a few other Chinese firms working on copies/upgrades of it.
The "Chinese Dragon" isnt sleeping, its just hung-over from the 50s-60s....
Let's see what's happening today:
We have an american company that has a global monopoly on operating systems. The 2 big chip makers for desktop computers are american. Nothing European here, move along. With patents on the horizon, we'll probably never make alot of inroads here.
Let's see what's probably going to happen in the future:
We'll have more chipmakers from Asia to choose from, or possibly in the future only asian chipmakers. All of that probably on linux (no need for the chineese to reinvent the wheel. Also, without american companies pushing for patents in europe, maybe we also will have a chance to fearlessly develop our own solutions and make money off them.
So, thing may not get alot better, but surely they won't be any worse!
See frequent black box voting slashdot articles, etc. This is one of those things that is just too blatant and obvious to ignore. We are living under a regime that came about because of a technological coup. It is not accurate to claim that most support the current regime,because most do *not*.
The Chinese have a lot of advantages. The first is sheer numbers...a higher number of people can be educated and work in the technology field. All other offshoring destinations (India, etc.) have this same advantage. The second is control; the Chinese government can still crack down and force people to do things that may otherwise be unpopular. The Soviet Union was famous for this when they forced the industrialization of Russia in a very short period of time. The third is an educational advantage. The only way to get ahead in Chinese society is education, and it seems from the numbers that parents drum this into their kids' heads right from the start.
I think that one of the things we could do to reverse the trend is to find a way to graduate more students in math/science/engineering. They're being scared off because they think that the only jobs left in this country will be in management. I can't say I blame them either.
How is this flaimbait!?!? Fuck all of you downmodding dickheads. Pull your head out of your ass and think for a change.
Dont forget that our entire society is setup to mock intelligence, and tries to teach children that intelligence/education are somehow "bad" .. kids hear jokes about school as if to suggest not being there is the desired state of being, and smart people are always portrayed as nerds with thick glasses while football stars are portrayed as heros of virtue (rather than rapists and drug abusers... ahem ...).... I was involved with schoolboard in my local town and while we have a great program for disadvantaged students ("special education"), that special-ed program only covers kids who have a -dis-advantage rather than gifted students... Also consider that our town buys each kid on the football team $1500 in equipment NEW every year, but the kids on the chess club have to buy thier own chess sets and there is no funding for a computer team. I live in New Hampshire, in one of the more conservative towns, so its not a matter of the rich town giving football a budget, its a matter of where they put the priority.... Given how hard our society tries to actively discourage education and intelligence, can we be suprised in the slightest?
Application denied forever. Comeback in a thousand years and maybe we lets you back.
England? Read up on their empire and it is their politics that led to the whole mess in the middle east with how the formation of Israel was handled, they should have created a palistine at the same time or at least given Israel better borders (the whole golan heights issue is because it gives syria a very easy front to attack from and a very difficult for Israel to defend). Oh and who created the situation between India and Pakistan.
So the axis nations are out. Maybe france? Can you say vietnam? No thanks and that leaves out the US as well. China is out for obvious reasons. Russia? Oh boy no.
Maybe a small country like say my own the netherlands? Nope, indonesia and our other former colonies show that we are just hitlers on a miniature scale and anyway our behaviour during WW2 was appaling.
The belgians? Please they got a goverment so corrupt that it makes the italians look capable.
Australians? Maybe after they do somthing to right the wrong committed against the natives.
It doesn't exactly leave anyone? Sooner or later pretty much every country has done stuff in the last century that shows that if a country/society/ethnic group has a change they will murder rape and slaughter those they think of as less important.
The only reason some countries at the moment behave is because they would get their asses kicked if they didn't. Nazi sympathy in germany is still sky high but the russians would never tolerate them getting in a position of power to the power that be in germany sit on it at the moment but still refuse to deport war criminals or lock them up.
No kiddo, no country can take the moral highground. Wich isn't going to stop anyone of course because rule one of real life. It ain't bad if it is you doing it.
MMO Quests are like orgasms:
You may solo them, I prefer them in a group.
It's a shame this was modded "Funny". It should be Insightful.
Great news - I can't wait to start ripping off their intellectual property, and selling CDs on the street for pennies on the dollar.
if only their government didn't suck ass, they could be so great. they have immense cultural momentum, a well reasoned and disciplined populace, and a penchant for churning out intelligent people.
You make an excellent point and one I believe many people here would be hard pushed to disagree with. What's your opinion on China?
Yeah but have you ever seen a japanese-run minimart?
Disconnect your television. Do your own research. Draw your own conclusions. They're probably lying. Don't be a sheep.
Wow, talk about selective fucking memory. You mean higher education is disparaged and punished in this weird fantasy-land you've created for yourself? In the real world I live in, intelligence and educational success are actively encouraged because they lead to good jobs with excellent financial compensation.
Then you obviously dont live in the USA... either that or you havent seen a public school in the last 20 years.
The Yuan (and thereore the people/products) are undervalue for now. China have got the currency floating marginally at the moment, its making a few percent per annum difference it needs to be allowed to float in a wider band.
Deleted
My 13 year old daughter asked what she should be when she grows up. I'm wondering whether or not I should even recommend that she goes to college. Maybe the thing to do would be to take half a dozen university classes, then drop out and start a business, maybe open a restaurant. A friend of mine has a son entering college now. He's going for engineering. My friend pleaded with him not to go into engineering, but he wouldn't listen. One one hand, I feel like we should be telling them to do what they enjoy. On the other hand, I feel like telling them to do something that has to be done here. Car repair? Plumbing? Open a restaurant?
Disconnect your television. Do your own research. Draw your own conclusions. They're probably lying. Don't be a sheep.
Given the populations of India and China, it was only matter of time until they began to outpace the US. Frankly, I think it will do us some good, make us get our act together in terms of education and legalities concerning business. After all, it's a free market - adapt or starve. Most Americans could need to lose a few pounds anyway. Then in a few years, once the war on terror has been concluded, presidential controversy winds down, and some headway is made in renewable/alternative energy, the US will catch back up (say 20 years?). Or I am moving.
The 'Net is a waste of time, and that's exactly what's right about it. - William Gibson
It's just scary to realize how similiar the Chinese economy is to the Japanese economy of 20 years ago, and how China is pretty much guarenteed to hit the wall within the next decade, just like Japan did.
Japan hit a wall mostly because it has only a limited workforce which is currently aging. That and it has to import all its raw materials.
China does not have to worry about an aging or limited workforce nor does it have to worry about importing all of its raw materials (except for oil but we have the same reliance problem).
"I am the king of the Romans, and am superior to rules of grammar!"
-Sigismund, Holy Roman Emperor (1368-1437)
It took several centuries to occur. They tried holding on to power beyond their frontiers and failed. Same is happening today but with a different world power.
The #1 product of the USA is this:
Bustin' Open A Can Of Whoop Ass on everyone who gets in its way!
OO-RAH
The Chinese are winning by reverse-outsourcing... They have a country full of low-wage assemblers and (relatively) low-wage engineers that are capable of handling most tasks... They then outsource work that is not withing their current capability to high-wage designers and engineers in the U.S. and Europe. Eventually, they will gain that capability and then will bring the work back in-house...
Yeah, because no one graduates from universities in the US anymore. And certainly no one gets a good job because of their education. There are only high-paid athletes and Wal-Mart employees in the America you see through your dystopia-specs. Yes, yes.
http://news.bbc.co.uk/2/hi/asia-pacific/4517706.st m
Life is offtopic.
...as since the downfall of the battleship occured during the cold war. Since then, the only element that truely has helped keep the value of the world's navies are aircraft carriers. I'm guessing China has some variation of Soviet technology for that.
However, you need more than a navy to support air units, such as a number of bases throughout the world to allow for units larger than fighters to be deployed. You also need more than fighters to display overwhelming force. I'm not aware of any Chinese stealth bombers.
Yes, but Japan has also had a very large influx of Japanese-speaking Koreans and Chinese over the past twenty years; there's a reason that Japan Town in San Fransisco has more signs in Korean than in Japanese.
The Japanese 'labor shortage' was never a problem; what fucked the Japanese, as the parent poster noted, was that they lost their currency edge, and then the inefficency of Japanese business practices caught up with them. The yuan is currently at an 8:1 ratio with U.S. dollars, much the same as the Yen was back during the early 70s, and the situation is indeed quite similar.
The difference on the U.S. side is that we still had an edge on the Japanese back during the 80s -- IT. Japan may have been making the cars and appliances more cheaply, but we were turning out engineers at a very brisk pace, and managed to build one hell of a computer software industry.
Unfortunately, we've by-and-large sold this out, crippled our educational system in a number of ways, and have made it almost impossible to start a company in the same way one would in the 1970s, because of all the new IP laws designed to protect big business.
Of course, time will tell one way or the other, but I'm happy that I'll be near-fluent in both German and Japanese by the time I get done with school, because I sure as hell don't want to limit my work options to the U.S. alone.
--
I Hit the Karma Cap, and All I Got Was This Lousy
Compare college graduation rates with other developed nation sometime. Compare the salary of a college educated middle manager with a rookie lower-end-of-the-draft football player (who was in college on a sports scholarship since they wouldnt have been accepted academically...) sometime. You know not of what you speak. I agree that education -SHOULD- be a strong enabler for success, however this often turns out not to be the case. I also agree that a good education SHOULD provide better social oppertunities, and as such motivate people to become educated. Again however, this is rarely the case. I work in IT, and half the other IT people I know have no degree (I'm a college senior, 1 semester from 4-year degree) and make the same amount of money, and in some cases make MORE money than the college grads in the same age range.
These comments are largely rife with denial and defeatism.
If Chinese tech avoids DRM while others embrace it, that alone might give them a few percent of marketshare.
Another area to gain some marketshare might be Open Source-friendly graphics gards, right now both ATI and NVIDIA are not exactly forthcoming with specifications. Intel's integrated chipset graphics have OS drivers but are not the fastest.
So even something equivalent to a Radeon9600 might be able to take the title of "fastest GPU with full specs".
C - the footgun of programming languages
was because so much money was spent there. It did help that there was nothing there (because it was bombed), but that also partly made it a moral decision to rebuild the infrastructure.
'course many of those companies were US....
look at whats left of soviet union, they were a great industrial power as well
like the berlin wall the great wall will fall...
Compare college graduation rates with other developed nation sometime.
What will this tell me? How other nations have different education systems? More important might be how many students get jobs related to their college degrees in various nations. I don't know what the answer to that is. I suspect you don't either.
Compare the salary of a college educated middle manager with a rookie lower-end-of-the-draft football player (who was in college on a sports scholarship since they wouldnt have been accepted academically...) sometime.
Why don't you come up with a more ridiculous comparison? There are, what, maybe 800 NFL players in total? How many middle managers are there? An NFL player is one of the best, the absolute peak of his field. A middle manager very likely is not. And are you seriously trying to tell me that professional athletes in other developed nations don't make incredible amounts of money? Exactly what is your point, you who know exactly of what you speak, but cannot articulate it?
I work in IT, and half the other IT people I know have no degree (I'm a college senior, 1 semester from 4-year degree) and make the same amount of money, and in some cases make MORE money than the college grads in the same age range.
Again, what is your point? If someone can do a job without a college education, they should not be allowed to? Only a college education gives you the right to whatever IT job you're doing? In any case, there will likely come a time, sooner rather than later, when the more ambitious of the non-college IT people around you will look to go to college in order to advance their career and prospects, seeing that without a degree they might not be able to move up into another position or another field within IT. But if they can move up and do the job properly without that degree, then that's fine too.
Education is an enabler, not a guarantee. I disagree with you that it's not a strong enabler, and that there is little motivation to become educated. At the very latest, as soon as you hit the workforce, you realize the value of an education, if that's what's required to get where you'd like to go. I just don't see how you can argue that the incentives aren't there.
Yeah, they found another life to ruin.
Come on, that guy's a scapegoat. The Chinese military systematically abuses the citizenry.
So according to you anyone who is a programmer and gets their job outsourced, can blame a union?
I dont know what your on, (it must be good stuff), but I have never been in an IT company where any employee was a union member, let alone a programmer. Besides, if there werent unions salaries in fake currency would still be commonplace.
If anything the real culprits are CEOs and board members who make millions as bonuses for "cutting costs". Getting rid of these overpaid executives costs a fortune as well. The cost to get rid of Carly Fioriana, cost HP $42 million dollars. She must have had one hell of a union representing her.
Here comes the midddle kingdom, and with it, City Earth.
China does have to worry about their aging population - this very imbalance is a consequence of the one-child policy in effect for decades.
Result is that in China most people are older and not engaged in the new Chinese economy (i.e., they're unemployed). There once were government pensions but many pension plans have gone bankrupt.
The prospect is that most young people in China will be strapped supporting their parents for at least two more decades. [This is also part of the reason why some futurists see war as a "solution" to some of China's problems - wars tend to cull out the elderly first].
I think this is inevitable...
The giants children slept away and forgot about the silent wars of our people.
'Till the day comes when none of the giants has not even one stone to eat because their blind sold the rocks away for dirt.
Ever lasting war with deaths unknown and screams unheard and sights seen but forgoten.
We are not stupid by birth, but by option and blindness and by lazyness.
Nor is it by ignorance or by knowledge, but by lazyness to hear the screams of the seemingly insane.
We only heard their screams in our mind when our sight caught up with theirs.
Arrested the Police Commander today who was involved in that shooting.
As do american police; and your point was?
A blog about stuff.
it would be a mistake to think a democratic government is the best in every respect.
is the benevolent dictator or the enlightened despot. Now who wants to be it? Should one of you become it, don't forget the 152 Rules for being an Evil Overlord!
Okay chinese electronic device manufacturers! Listen up!
Make region free (region 0) DVD players that support Ogg Vorbis!
Make computers without Treacherous Computing (TC) and DRM!
Good! do that! And sell them crazy ass cheap!
The sad and funny thing about macro-economics is that they ignore where wealth is actually created.
I've studied long and hard about the so-called problems of trade imbalance. All I can see is a bunch of people asserting things without backing them up. I've looked at historical examples of trade imbalances. I can't see how it is a bad thing, even in the long run.
In America, wealth is generated with EVERY TRANSACTION in trade. Every little thing you buy in the store, every time you put your money in the bank, or take it out, or buy a stock or sell it, or make a house payment, etc... wealth is generated. Someone gave you something that is worth more to you than it was to them, and in exchange, you gave them something worth more to them than you. If it weren't so, the trade would not have occurred. In fact, even NOT TRADING creates wealth.
Only in America do people understand this at a common-sensical level. We know that by buying groceries, we generate wealth. By staying home and eating leftovers, we generate wealth. Boycotting creates wealth (because well-behaved companies are more valuable to society than ill-behaved ones). Donating to charity creates wealth (because we value charitable acts and are willing to spend money on it). We don't buy into this "buy! buy! buy!" consumerism because we know it is not right. It is only when we take our hard-earned cash and spend it on things MORE valuable to us than cash that we are helping the economy.
No other country in the world has such an economy. All other economies put on limits or they misinform the people about what is needed to generate wealth. The net effect is that people make decisions that actually reduce the wealth in the country.
The radical sect of Islam would either see you dead or "reverted" to Islam.
Ahh, okay, today's reason for going to war: Mr. Saddam Hussein.
Do you even know that the US administration was on best terms with Saddam even when he was already killing kurds with nerve gas and that Mr. Rumsfeld served as a special envoy to Iraq during that period?
The US administration probably had a couple of reasons to invade Iraq, but humanity was certainly not included.
Hey, this is really good news, I didn't think we made anything anymore. But hey, wow, we're actually in second place! I'm gonna go celebrate this with a tasty Tsingtao beer.
Flying is easy, just throw yourself at the ground and miss. -Douglas Adams
Besides, if big American companies decided to pull out of China, I imagine the conversation would go something like this:
American business representative: We're sorry, but we've got to look out for our own interests. We're pulling all our wealth out of China.
Chinese representative: We are sorry to hear that. We believe we can expedite things a bit. All the wealth in the companies you have here is now ours. [presents soldiers] Also, we've arranged to have you stay in our finest detention camps, indefinitely.
http://www.federalreserve.gov/releases/Z1/Current/ z1.pdf
Foreigners own about 43% of our treasury bonds in 2004. But that only demonstrates their faith in the ability of the American taxpayer to pay enough taxes for debt service. I'm not sure if that's good or bad.
Thankyou!
Some people automatically ponder a trademark title as "FREE TRADE AGREEMENT" to be about un-hindered trade from third-parties, when any such agreement is thereby a spire to effect a change and to hinder trade in such a way. I always thought it was the people, not The People, to partake in free trade. The first champertains to involve themselves in pursuing the revenue of trade are Police, then COPS, and sarcastically the Internal Revenue Service looking to coerce a confessed W4 form. Police are nothing more than debt collecters on someone else's behalf, but it confuses the shit on people to not realize that a Police officer that makes an accusation or a legal determination has actually stepped out of his office without removing the black robe and his golden badgery of prideful demerit to his employer. What about the United States restricting the movement of bartered resources of the people, to confess its value appraised to a taxable source as their fiat US Dollars? It sounds like a corporation exhibited in UNITED STATES CODE, Title 28, Section 3002, 15; whereas "United States" means "a Federal corporation." It acts as throuput in the Law of Nations that The People is corporate and then there are the people/politic distinguished from The People, or somthing strewn about to confuse everyone with chiccanery. In same light of events, what has ever happened to tax exemption of ALL food? It is already encroached upon prepared foods, as if no food has ever been prepared, and the people are coerced to uncustomarily donate a 20% tip to the platter jockies whereas even they are coerced to confess it to the IRS as income?
Has anyone forgotten all the lynchings of esquires at the Virginia court houses? If I remember correctly, if any treaty or act was performed to ballance any arbitrary favor or dis-favor of the people even-so without regard to the doctrine of Principles and Agent, then it was destroyed and the extortioners hung on wood for it. With pseudo-History mercenary job-security teachers, teaching prissy and pansy thoughts on pride and uncontentious rebuke, it's no wonder there are so many spines built of chicken-fenced bullshit that takes all use of corporate Court personhood services stemming from the birth-certificate banknotes.
"Following the law is the responsibility and obligation of the people"
"Don't listen to rumors, don't let yourself be used."
"The people's government will always support the people of Dongzhou."
These messages brought to you by the ministries of Love and Truth.
Thank you for this... I hadn't heard of it yet. *sigh* Will crosspost to get publicity... as usual, the American Press is mum.
Sorry man... the Internet pooped on me.
1 - they are smart
2 - they bust their butts
3 - they work in teams
4 - there are billions of them.
As do american police; and your point was?
You are a complete asshat. The American police routinely shoot protesters? America has its problems, but to compare its treatment of citizens to China only demonstrates that you are an ignorant fool.
As for democratically elected? I remember comments from russian reporters who had just finished reporting on the collapse off the soviet union and were now part of the brave new free press reporting on the american election between I think Clinton and Whats-his-name, they found themselves odly at home. 2 candidates with virtually the same agenda both put forward by the party with limited access by the press and only with pre-approved questions. Oh sure, the differences between the soviet union and the US, and parts of europe are huge. Just sometimes you need reminding.
MMO Quests are like orgasms:
You may solo them, I prefer them in a group.
...There are more 7-Eleven stores in Japan than in the US (view this link).
By "democracy" I am referring to the system of electing leaders by popular vote.
The game theory of the Prisoner's Dilemma, and the subsequent Nash Equilibriums of mutual bad behavior, predicts that over time a democratic system inevitably becomes dominated by charlatans and demagogues. Of course, good people do get elected even today, but the predicted problem certainly rings true to our ears. A slew of associated problems that game theory would tend to predict are also evident in the conduct of elected officials: an avoidance of hard choices, the seeking of short term popularity at any cost, and so on.
Society has changed tremendously since the late 18th century, becoming vastly larger in population and with an even greater increase in the complexity of our society and economy.
Unfortunately, the ability of the "demos" or people to understand contemporary problems has not kept up. Each person only has one vote, and any benefit to the individual from casting one informed vote among millions is far outweighed by the cost to that individual of becoming reasonably expert in many areas of national policy at once. The uninformed voter is a rational voter in a democracy the size of the United States, or India, or Britain.
So, societies that evolve to scientific meritocracies will win. That looks to include China, and not (sadly) the United States.
There are a few problems in reasoning with the parent post.
Firstly, the example items mentioned WOULDN'T necessarily be tallied into the Chinese total, as they are indeed manufactured and sold by a company in the U.S. regardless of the location of manufacture. These would not normally be categorized as Chinese exports - normally export would mean a Chinese good purchased from a Chinese company.
Secondly while profits may accrue to a U.S. corporation, some of the wealth generated in such an endeavor would remain in China in the form of wages paid to Chinese workers, possible purchase of raw materials from Chinese sources, and related expenditures to support the endeavor (offices, plants, services, utilities, etc.). This is nominally at the expense of the U.S. economy as that wealth has moved from the U.S. to China.
Thirdly, in this particluar example and in an ever increasing majority of public holdings, the shareholder in fact does not receive any profits from the company whatsoever. Apple does not issue a dividend on their stock. Owning Apple stock is pure speculation on the rise in value of the shares. In that instance the investor realizes their profit by selling their shares for more than what they paid, not by receiving any money from Apple. Profitibility of the company is only indirectly related to the investor's return on investment in its effect on the stock price. Currently the only people who seem to benefit much from a company's profitability (as I said in a majority of cases it seems) are the officers of the company, with some crumbs thrown the regular employees way occasionally. And where do you think these officers keep their profits? Offshore banks for tax purposes perhaps? And do you think these officers are buying a majority of U.S. made items with all of their money? Thus the bulk of the profits do not necessarily end up getting plowed back into the U.S. economy, further decreasing the wealth comprising that economy.
Fourthly, saying foreigners have driven much of the growth indicates that they are investing money in Chinese companies, again moving wealth from the economy of the investor to the economy of the investee. Certainly the investor, if they receive a profitable return on the investment, MAY then increase the wealth of his "home" economy through expenditure of the profits, but I hesitate to say that that happens enough to make up for the grass roots wealth creation that is lost as a result of the investment leaving the U.S. In short TFA does not remotely say the same thing, even obliquely.
Finally, I see no basis for thinking U.S. production may still lead Chinese production because the U.S. leads the world "in resource hoggery." You have to pay for those resources somehow, and if you're running a trade deficit, with the threat of a devalued currency, it makes it difficult to continue to be able to afford being a resource hog, especially to the degree the U.S. has been.
Unless of course you start beating people up to secure the resources, and even then you have to have the money to buy the guns...
You must not know anything about economics. Printing money to pay off billions of dollars of debt would completely destroy the economy. Investors have faith that the US isn't short-sighted enough to cut off their nose to spite their face.
Companies go under, the US does not. You have a huge ammount of risk if you invest in stocks, and the return can be huge, or a complete loss. The entire country was up in arms when Enron went under because Enron stock was a big part of their retirement fund. IMHO, you have to be stupid to invest money you DEPEND ON in stocks.
US bonds generally give you better interest than a bank, and you can get big tax breaks from them, which make them rather more valuable.
Slashdot gets worse every day... Pipedot: News for nerds, without the corporate slant
China and Japan have stopped buying American debt. When America hit somewhere around $7.5 Trillion, they said enough is enough. These days, we're getting money from unnamed benefactors who route money anonymously through caribbean banks. No, seriously.
and providing our consumer based economy with cheap goods, fueling our economy and tax base.
To some extent, yes, but here's the basic deal: They prop us up, we buy their shit. Well, with all the 'good jobs' going overseas, the money has to be coming from somewhere. That somewhere has been the housing market, which, by the way, is about to melt down. The US housing market is strained to its limits and consumer spending has tapered off as a result. Hence, China/Japan have stopped buying debt. The return on investment is no longer great enough. Of course, when the housing bubble pops, it won't be the S&L scandal of the 80's all over again. This time, there is no government bailout coming. The government simply doesn't have the money or the credit necessary for a real bailout. They'll have to print more money to do it, and that will make what money you have now worth about as much as confederate money. Central banks see it coming and are trading in dollars for hard assets as a result. Did you notice that gold happens to be at a 24 year high?
Yeah, we're in deep shit.
Our huge trade imbalance cannot last forever. Either it will correct itself gradually or quickly in a nasty bubble. I don't think we should allow such wide imbalances. If China does not find a way to buy more US stuff, then slap a tariff on them. Bubbles are ugly.
Plus, if we rely on everything being made in China, if they want to shut us down during a war they simply stop the supply and we die because we no longer have the knowhow to make stuff ourselves.
Scary.
Table-ized A.I.
While I cannot disagree that China treats its dissidents worse than the US, I was responding to the allegation that:
"The Chinese military systematically abuses the citizenry."
As does the US. And I know from experience that American police are often not punished for their crimes against citizens.
A blog about stuff.
What would China's IT output be if 90% of software in China weren't pirated?
the U.S. needs to wake up. its way deeper than what they think http://www.physorg.com/news8992.html
$action = empty(PHP) ? backToC() : unset(PHP) ; "when the concrete cases are understood, the abstractions are readily
But think of this! Look at the Dow Jones average over the past 100 years. A far safer bet would've been to sink those trillions of dollars into American companies. Instead, the Japanese and Chinese are buying some of the worst investments in America! You can't find a serious trader whose principal strategy is to buy American debt.
YES, we will repay the debt. But guess what? On average, an American company will succeed fantastically! Why they trust the taxpayers and not our business leaders is a mystery to me.
Bottom line is, if the Japanese invested like Warren Buffet, they wouldn't have any national debt and would have money coming out of their ears they wouldn't know what to do with like Warren Buffet. They would have all this cash and capital and wonder, "What in the world can I do with this?"
The radical sect of Islam would either see you dead or "reverted" to Islam.
You must not know anything about economics. Printing money to pay off billions of dollars of debt would completely destroy the economy. Investors have faith that the US isn't short-sighted enough to cut off their nose to spite their face.
We do print billions of dollars every year, unsecured! We have this group of bankers who decide how much money they're going to print out of thin air every year. We call them the Federal Reserve. Even when they played with our economy by bringing the interest rate way up (thus printing untold trillions in fresh currency, unsecured), we still recovered quite well.
Companies go under, the US does not. You have a huge ammount[sic] of risk if you invest in stocks, and the return can be huge, or a complete loss. The entire country was up in arms when Enron went under because Enron stock was a big part of their retirement fund. IMHO, you have to be stupid to invest money you DEPEND ON in stocks.
Companies ARE the US! Individual companies MAY go under, but in the long run, in average, they do remarkably well. Yes, Enron went down. But I can name you thousands and thousands of companies that didn't. A very large number of them did incredibly well. Look at the stock charts. Take the Dow Jones, for instance. It goes up exponentially over time, at about 20% per year! In my mind, you have to be stupid to not invest free capital in the stock market. I mean, if I told you I can guaranteed give you 20% per year on your money, and I consistently delivered for the past 100 years, why would you put it anywhere else?
Besides, if the stock market really failed, I mean, failed in a way that made the stocks irrecoverable, it would have to be because we were hit with a crippling nuclear attack and no one can rebuild anything. In that scenario, even gold won't be worth much, because there will be nothing to buy.
US bonds generally give you better interest than a bank, and you can get big tax breaks from them, which make them rather more valuable.
I don't see why Japan and China would think getting tax breaks by buying bonds would make them more attractive. They pay 0 in taxes to the US government anyway.
The radical sect of Islam would either see you dead or "reverted" to Islam.