An example of politics as usual in the good old USA in the run up to a major election. Voters that buy into Romney’s spin on China should read this piece from Forbes magazine that says, “Buying From China Is in Fact Buying American”, which clearly points out that “China does not steal our jobs….”
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http://www.forbes.com/sites/forbesleadershipforum/2011/12/22/buying-from-china-is-in-fact-buying-american/

Carnet Atlantique

Republican candidate Mitt Romney has made headlines during his campaign for declaring Beijing to be a threat to world currencies, but it wasn’t always so. In an intriguing new analytical piece, Reuters did a little digging and found that the millionaire’s current stance wasn’t always so. Shocking, we know.

According to Reuters:

“From his early days at private equity firm Bain Capital to his time as Massachusetts governor, Romney welcomed investments from China, and bought and expanded companies that benefited from its low labor costs and controlled currency. As chairman of the 2002 Winter Olympics, he also said Beijing should not be punished for human rights abuses.

All this is in sharp contrast to the Republican presidential candidate’s current line of attack on the world’s second-largest economy, which is now the United States’ most important trading partner and largest foreign creditor. And that makes political strategists, China experts and business…

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4 Responses to

  1. lemon123 says:

    I am looking forward to reading your book. Just enjoyed reading China History and your story on Peeking Between The Pages. Fascinating.

    • Thank you.

      I want to let you know that Robert Hart doesn’t meet Ayaou until the third chapter, which starts on page 43. Of the novel’s 230,000 words, Robert spends about 13,000 of those words without Ayaou in his life.

      Hart is mostly alone in the first two chapters and some reviewers have felt the style is different (almost flat more like nonfiction), which is the way I wanted to depict it because Hart’s journals for his first year in China show a lonely man starting out learning the Chinese language. He misses his family. He doesn’t have a girlfriend. He doesn’t speak the language and has to learn it from scratch, and he is one of only a few Westerners in the city of Ningpo. Most live across the river in a compound and do not live in the city as he does.

      After Robert Hart meets Ayaou in chapter three, the tone of the story changes drastically. His life in China blossoms after chapter three but not without its challenges.

  2. merlin says:

    That’s a piece of work. I love the comment in there, “These politicians are spreading the word to dont buy Chinese goods over their iphones.”

    Truthfully, people shouldn’t be worried about the money loss. As in the article, China only receives about 1% of the value. People need to remember last year or a few years ago when Foxconn was all over the news because of the suicides due to the economic crunch. People there slave away for little pay, and are provided a dorm room for living. My friend worked in Kunshan for Foxconn. She lived in the women’s dorm, while her boss lived in an beautiful white apartment with big screen tv and tile flooring. The apartment community center had its own YMCA where people could use exercise equipment, play billiards, or ping pong. He was wealthy enough to own a SUV, and send his kid to learn piano along with English. She slapped me for not thanking him multiple times and practically kissing his feet for letting me crash in the small office space barely big enough for a bed.

    So, from that, I learned that in reality the common staff make diddly compared to the supervisors that run the show. Yet the supervisors earn diddly of the profits out of the $$$/ea for an iphone. Most of that money usually returns to CA or WA where the company is HQ, spread among the high wage staff, and a chunk is given to the owner standing on top of the massive ice berg.

    I would estimate that the Chinese staff make roughly 3000rmb/month. +/-. Follow the exchange = 6.39 rmb = 1 USD and you’re looking at 469.48 USD/month. To survive at that amount, you’d have to live with your parents, cook at home, and watch your utility bill (while cutting out cable and internet) if your family charges you for that (as I suspect mine will whenever they catch wind of my plans). That’s working a 40+ hr/wk job. Honestly, if any American did that I figure they’d throw their uniform or whatever in their boss’s face after the first day and wish ’em luck with the bird on the way out the door.

    The only jobs they’re taking are the simple jobs such as putting stuff together with glue or nuts/bolts. I only see that as a problem when the cost of tuition is going up for a degree, most jobs are requiring a degree, and the job market is progressing into a bar brawl for a vacant position. I would never say the Chinese are stealing, as it is us the consumers that want the cheap prices, and it is our companies that want to make a big profit. The blame is on ourselves and our companies. We are also blind to the fact that while we’re slaving away to make the country work, the business owners are taking their income and spending it on global travel vacations or purchasing foreign property to get their income out of the US so they can attempt to skip taxes. Illegal as it may be, but they find loopholes in the system.

    • Forbes.com says, “Actually, a lot of the iPhone is already Made in the U.S.A.

      “A report written by three U.S. professors showed that only about “$10 or less in direct labor wages goes into an iPhone or iPad is paid to Chinese workers.”

      “The report points out that while the Apple products – including components – are manufactured in China, the primary benefits go to the U.S. economy because Apple continues to keep most of its product design, software development, product management, marketing and other high-wage functions in the U.S., not China.

      “China’s role is more of an assembler,” says Forbes.com

      http://www.forbes.com/sites/kenrapoza/2012/01/31/how-much-of-the-iphone-is-made-in-china/

      In fact, according to Freedom Sledder.com (a forum), “We often assume that “assembled in China” means that 100% of the product’s content and value is produced or “captured” in China, when in this case only 1% of the iPhone’s value is produced by China, and more than 60% of the iPhone’s retail value is produced by American engineers, designers, and other IT professionals at Apple, and also at other U.S. companies like Intel and Texas Instruments that provide some of the components.

      “rising inflation or wages in China wouldn’t have much effect on the retail price here, since the cost of assembly is so insignificant to start with – $6.54 per $600 unit. Further, production will shift towards lower-cost regions of China as the article mentions, or production will shift out of China to Vietnam and other markets with lower wages.”

      http://www.freedomsledder.com/forums/index.php?showtopic=35125

      And you are right. There is a HUGE diffrence in assembly pay in China compared to US workers that often make as much in a day as an average Chinese worker may earn in a month. However, the cost of living is less in China. For one thing, assembly workers in China are mostly from small rural villages where there is no rent, mortgage payment or property tax because the people do not own the property and the private sector doesn’t own most of the rural land either—Most rural land belongs the villages and government and the people live in their homes for free and work a small plot of land to grow the food they eat and sell any excess if there is any.

      To understand the total picture, one must start before 1949 before the CCP came to power after the civil war. Before 1949, less than 5% of the people owned land in China, more than 90% of Chinese lived in severe poverty, 80% were illiterate, the avearge lifespan in years was 35. Prior to 1949, the vast majority of Chinese barely ate enough to survive and annual droughts leading to famines and deaths were the norm. To see how bad this was all one need do is spend time to discover what life is like in much of rural India today for its almost 400 million people living in severe povert. In fact, in India an average of 6,000 children die daily from starvation.
      ____________________________________

      Seeing Red in China.com reported that the average annual rural income in China is $900 (that’s annual earnings), so leaving the village to work in a factory where you earn that much in about two months (and that includes room and board) is a huge step up compared to the average rural lifestyle/income. These Chinese have never lived the avearge American lifestyle, which most in America take for granted and feel they are entitled to even if they do not work for it but subsist off government entitlements.

      Source: http://seeingredinchina.com/2011/04/27/how-poor-are-chinese-farmers/

      Most Americans have never lifed a lifestyle even close to most rural Chinese and most rural Chinese today are WAY better off than they were prior to 1949. The last Chinese famine caused by a drought was in 1959-1961 and the only reason that so many died at the time was because the CCP messed up with its policies. In fact today, rural Chinese do not have to answer to some heartless, wealthy landlord anymore that before 1949 treated most rural Chinese peasants worse than they treated farm animals. Prior to 1949, most rural Chinese had no money and had to turn over most of the food they grew to the landlord (who sold it so his or her well off middle class family had money) as rent while barely having enough food left to stay alive.

      To understand China, one must know its history before 1949. There is no way to compare China to the US and be accurate or fair to the Chinese. Someone should tell US politicians these facts. In fact, someone should teach America the differences.

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