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Restrict Imports from China?

Babel Fish 2010/09/18 00:49:12
Related Topics: Debt, Deficit, Chinese
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The general stupidity of the present administration, that it will
not impose extra import tax on certain Chinese goods, to curb the one
way money flow to Chinese banks. However its not that stupid when you
look at the politics and the fact that China would react by placing
sanctions on all US goods.

I really am amused by the way this factor was edged around, with a very
un-logic statements by Roach (Morgan Stanley) concerning Treasury
Secretary Timothy Geithner's decision.

Time to reveal truth about China's yuan debate

"The lawmakers have labeled China a "currency manipulator" and demand
that Beijing let the Chinese yuan, or Renminbi, appreciate to balance
its trade and narrow the huge deficit.

Their efforts are attempting to make China an easy scapegoat for
America's economic woes and are in no regard to the fact that the value
of the yuan has increased by up to 20 percent since 2005.

The Americans should be bold enough to put the responsibility for
creating the trade imbalances on their own shoulders instead of trying
to cast blame on others. The entire world knows the United States
doesn't bank much money and counts on the world's savers, such as China,
to run large current accounts and trade surpluses to provide America
with capital.

Applauding Treasury Secretary Timothy Geithner's recent decision to not
label China as a currency manipulator, Stephen Roach, chairman of Morgan
Stanley Asia, said the bulk of China's foreign exchange reserves helps und the massive U.S. savings shortfall.

Roach warned that a reduced buying of goods from China, America's
largest foreign lender, would put sharp downward pressure on the dollar
and possibly trigger a dreaded double dip in the U.S. economy. That,
Roach said, could create turbulence in the fragile economic recovery.

Instead, the answer to U.S. trade imbalances lies in structural reforms.
But regrettably, the changes necessary to produce such reforms cannot
occur overnight."

The problem really is that America is in between a rock and a hard
place. It needs to manufacture it own goods and really much less on
China. But it owes a debt to China, and China has the aces in its hand.


So what is going to happen, the money flow still goes one way, no new
manufacturing base. Communism in China flourish even more whilst the US
empire and power folds, in its ever increasing debts.

The solution is not to be afraid of China and impose sensible import tax.


Read More: http://newsbull.wackwall.com/blogs/48

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Top Opinion

  • flaca BN-0 2010/09/18 01:28:35
    No we should not impose taxes
    flaca BN-0
    +2
    A better way to tackle this is maybe to change corporate taxes. If a retailer can show that they buy 50% or more of their inventory from American manufacturers, they should have a lower tax rate than those that do not. In this way, it will encourage some larger retailers to seriously look at finding ways to get their products sourced here.

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  • David (oYo) 2010/09/24 15:20:11
  • Babel Fish David (... 2010/09/30 02:22:45
    Babel Fish
    Having just returned from a visit to China, I can confirm that their economy is very stable the prices for goods have remained unchanged for 7 years or so, cigarettes and alcohol are exactly the same price.

    In Shenzhen consumers are consuming, most citizens have the up to date mobile phones the women the latest fashion. New cars are on the road, tourism however is suffering due to the lack of agents etc, buying new product to export home. But the economy is looking good and I just can not see the Chinese up valuing their currency whilst they have no inflation. Why should they it would create inflation and at present they are concentrating on there home consumer market, it very noticeable.

    Its up to the west to do something, China really needs to do nothing as doing nothing is more viable for them. They certainly want to keep inflation under control and the wage levels down and up valuing their currency will cause problems to their stable economy. Its that economy that keeps their currency low. They are not doctoring their currency its the fix pricing and no inflation that is keeping their currency low.

    I truthfully believe that taxing goods at the port of entry is the only answer, China will make noise but do nothing really to help.

    Hong Kong has become more expensive the difference is very noticeable however a different issue.
  • David (... Babel Fish 2010/09/30 07:19:10
  • Babel Fish David (... 2010/09/30 07:54:44
    Babel Fish
    They will not do it, that's the basic problem, they want to keep their no inflation policy. They will say they will unlock their currency but due to the non inflation policy nothing will happen. Its not illegal to tax imports it never has been.
  • David (... Babel Fish 2010/09/30 07:57:55
  • Babel Fish David (... 2010/10/01 15:36:18
    Babel Fish
    But they do not want inflation and had had the ability to freeze prices because they can control their corporations and businesses. Also wages are controlled, the government there owns part of every business. Though that's now being change concerning new businesses.
  • David (... Babel Fish 2010/10/01 22:29:31
  • Babel Fish David (... 2010/10/02 00:41:18
    Babel Fish
    Of course he has, it was a necessary move before introducing taxes on goods from China. China is not going to budge and now USA will be looking at Europe to also threaten sanctions on China. They really need the same thing as USA. Something needs to be done and China will not be helpful they really have no need to as they believe they hold the aces.
  • David (... Babel Fish 2010/10/02 07:50:47
  • Hammerhead 2010/09/18 16:55:18
  • Babel Fish Hammerhead 2010/09/19 01:24:56
    Babel Fish
    Just buy western goods especial your own countries products, could be the answer, but people want to buy at the lowest price and most don't really give a damn.
  • TheR 2010/09/18 10:02:23
    None of the above
    TheR
    I believe in management, not protectionism, or rising the value of the RMB. The point is China is 1 billion more people than Americans. They should be using their own population as a resource for making income, instead of flooding the American marketplace. The only reason they do it, is because they want the profit from American dollars when they make things so cheaply in China. You can not produce anything in the world as cheap as China does. America can not compete with them in providing cheaper goods. The answer is for America to lower the value of its dollar, which will stop the flow of China goods into America, because they will lose money in shipping. China could tax goods coming into China from the US, but really the US has no major exports to China, so, so what if they did. Americans will lift themselves out of poverty by having low cost items, a real benefit to them, since they have 1 billion less people. Everyone will have a job, making less money, but products will cost less, and the trade imbalance will shift toward China markets. Then the US will have a solid WTO footing to have trade into China, because now the Chinese can afford to buy US products, and the trade imbalance will reduce..Putting American back in the driving seat, and gaining the biggest market pla...
    I believe in management, not protectionism, or rising the value of the RMB. The point is China is 1 billion more people than Americans. They should be using their own population as a resource for making income, instead of flooding the American marketplace. The only reason they do it, is because they want the profit from American dollars when they make things so cheaply in China. You can not produce anything in the world as cheap as China does. America can not compete with them in providing cheaper goods. The answer is for America to lower the value of its dollar, which will stop the flow of China goods into America, because they will lose money in shipping. China could tax goods coming into China from the US, but really the US has no major exports to China, so, so what if they did. Americans will lift themselves out of poverty by having low cost items, a real benefit to them, since they have 1 billion less people. Everyone will have a job, making less money, but products will cost less, and the trade imbalance will shift toward China markets. Then the US will have a solid WTO footing to have trade into China, because now the Chinese can afford to buy US products, and the trade imbalance will reduce..Putting American back in the driving seat, and gaining the biggest market place in the world. By the way I would encourage Americans to start making chinese things that can be sold in China when they celebrate Spring Festival. That is near the New Year. Americans can make a lot of money by selling it cheap, and getting to China for 2011 Spring Festival.
    (more)
  • Babel Fish TheR 2010/09/19 01:41:12 (edited)
    Babel Fish
    If US lowers the value of the Dollar goods from China will be cheaper? It has to be the Juan that is raised to achieve the effect your stating. The dollar needs to remain stable.

    The problem is that the Chinese, keep their currency low its not geared to their Import Exports like else where. Its far to low at present. What ever US does they will keep it low.
  • TheR Babel Fish 2010/10/01 13:21:11
    TheR
    No if the US lowers the value of the dollar, China will not make the yuan cheaper, because that would affect their prices in the Real Estate Market. People who have bought homes have to pay their mortgages, and if the yuan is cheaper than 6.7 they will lose money, and it will cause a problem for them in making payment on loans. So if the US lowers its value of the dollar to equal as China, China will not waste it's money on shipping to the US markets, when it has it's own larger market to keep running smoothly for people to make good on their mortgage payments for earnings from their business.

    http://newsbull.wackwall.com/...
  • flaca BN-0 2010/09/18 01:28:35
    No we should not impose taxes
    flaca BN-0
    +2
    A better way to tackle this is maybe to change corporate taxes. If a retailer can show that they buy 50% or more of their inventory from American manufacturers, they should have a lower tax rate than those that do not. In this way, it will encourage some larger retailers to seriously look at finding ways to get their products sourced here.
  • Babel Fish flaca BN-0 2010/09/18 01:46:38
    Babel Fish
    +1
    That's a brilliant Idea one that china can not really give a good argument too.
  • connie ... flaca BN-0 2010/09/18 03:15:23
    connie (in name only) BN-0
    +2
    Exactly. We need competition for China right here, in the U.S.
  • Babel Fish 2010/09/18 00:51:50
    Yes we should impose taxes on Chinese goods
    Babel Fish
    Its the only way I see the world not just America to get one way money trap.

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