How the Chinese saved GM’s Buick Brand and Donald Trump is killing American Jobs

December 5, 2018

Malignant Narcissist and the embarrassingly ignorant Donald Trump used his “BULLY” pulpit as the president of the United States to threaten: “General Motors Should Pay Back Bankruptcy Aid.”

Trump said this, “One day after General Motors reported it will shutter five North American assembly and powertrain plants.” The reason: the tariffs President Donald Trump has placed on steel and aluminum in his trade war with the world.

After Losing $1 Billion to Tariffs, General Motors Announces 14,000 Layoffs

And the BBC.com reports. “(Trump’s) Critics point out the US gets most of its (imported) steel from Canada and the EU – staunch US allies.”

In addition, ABC News reports, “The U.S. produced 81.6 million metric tons of steel in 2017, according to steel trade group The World Steel Association (WorldSteel).” How much steel did the U.S. import: “In 2017, there were 36 million metric tons of steel imported to the U.S.”

In June, Trump already had “imposed a 25 percent tariff on $50 billion in Chinese goods, including China-built cars such as the Buick Envision.”

The Envision was first introduced publicly in China on July 1, 2014, with a photo of the car under a cover and placed between a Buick Encore and a Buick Enclave.

The Buick Envision has never been manufactured in the United States and no American jobs were lost jobs because of the Buick Envision being produced in China.

Back in July 2014, NBC News reported, “How China, Not Your Grandfather, May Have Saved Buick’s Future.

The reason China saved Buick is because in China Buick became a luxury car equal to BMW and Mercedes Benz. “In the late 1990s, when General Motors wanted to become one of the first Western automakers to set up a plant in China, government officials told then-CEO Jack Smith they wanted GM’s ‘best brand,’ he once recalled — not Cadillac, not Chevrolet, but Buick. Today, GM is the second-largest automaker in China and Buick is its top brand.”

How many GM Buicks are sold in China vs the United States?

Forbes.com reports, “When GM went through bankruptcy a decade ago and euthanized Saturn, Pontiac, Saab and Hummer, the custodians also pressed the case to relegate Buick to the automotive graveyard along with Mercury, Plymouth, Hudson, Studebaker, AMC, LaSalle, etc. But they were deterred by a passionate case for Buick made by GM executives stating that if the brand were killed in the U.S., it would probably dramatically impact the brand’s bizarrely healthy business in China. That’s right. Buick sells more than 800,000 Buicks a year in China. In the U.S., Buick did about 220,000 last year.”

Do you think the Chinese would be willing to buy that many Buicks if China allowed them to be imported, with a price increase, if GM moved manufacturing back to the United States for Buicks sold in China?

In fact, some U.S. made vehicles are exported to and sold in China. USA Today reports, “Altogether, Chinese sales of U.S.-made vehicles totaled about 266,657, representing less than 1% of the world’s largest automotive market.” Compare that number to how many cars made in China were sold in the US: USANews.com provides the answer: 50,000.

What country will lose the most jobs if the U.S. is forced to stop selling more than a quarter million cars made in America to Chinese consumers while China stops selling fifty-thousand to U.S. consumers all thanks to Donald Trump’s trade war?

Let’s not forget that Donald Trump has said he is a stable genius, very intelligent, and a great businessman … that caused U.S. banks to lose more than a billion dollars from Trump’s six biggest bankruptcies. Did you know that Donald Trump said during the 2016 presidential election debates that he never had a bankruptcy?

It is safe to say that if Donald Trump brags about how great he is, he is lying.

If you are curious how to sell China manufactured products in China, visit the China Law Blog here.”

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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Is China already the World Leader in Climate Strategy

November 14, 2018

The Environmental Defense Fund (EDF) reports, “As the United States steps away from global climate leadership, China is stepping up. EDF has been working there for more than 25 years, and now we’re helping the Chinese government launch a national system to control climate pollution.”

How serious is China?

In 2017, the BBC wrote, “China leads world in solar power production” …

“The largest solar farm in the world – Longyangxia Dam Solar Park, all 30sq km of it – is a Chinese project. And the country recently opened the world’s largest floating solar farm, in Huainan, Anhui Province.”

CNBC reports, “China continues to lead global wind energy market, says new report.” …

“The GWEC said that Asia would lead growth, with China – which installed 23 GW in 2016 – leading all markets.”

CNBC also says, “China now produces more solar, wind and hydro power than the US and EU combined.” … “And, according to a recent report by the Institute for Energy Economics and Financial Analysis (IEEFA), last year alone China pumped over $44 billion into increasing its renewable energy reach.

“This model of renewables replacing coal is now being replicated throughout Asia.”

China is also in the process of replacing its taxi fleet with electric cars.  Quarts reports, “China added as much battery-storage capacity in 2018 as all previous years combined.” … “China isn’t building gigafactories,” says Patrick Hurley, chief technology officer of A123, a lithium-ion battery company. “It is building gigacities.” … “In 2017, CNESA estimates that China built 40 GWh worth of batteries for electric cars and buses. That accounts for the batteries in more than 50% of all electric vehicles sold globally in the same year.”

“Beijing Leads China in Promoting Battery Electric Vehicles,” Inside EVs says. “Beijing is one of the most EV rich places in the world with 188,000 all-electric vehicles, which is 11.6% of all electric cars registered in China.

“The Chinese capital increased the number of BEVs this year by 17,000. Around 140,000 out of a total of 188,000 were purchased by individuals and companies, while the remaining 48,000 were used in the public sphere.

“All those vehicles can use roughly 130,000 charging points – 93,000 privately installed for home use, 20,000 accessible to the general public, and 17,000 installed for the public transport system.”

And Vox.com reports, “By 2020, every Chinese coal plant will be more efficient than every US coal plant.

China’s efforts to tackle coal are comprehensive and ambitious, a new report shows.”

What has President Donald Trump done in the U.S. to cut back on fossil fuel emissions/pollution?

Nothing!

 

In fact, Trump has signed executive orders that allow coal mines to pollute US rivers and coastal waters with more toxic emissions. … “Old coal-fired power plants may get to keep polluting the air we breathe and the atmosphere that sustains life on earth, thanks to Trump’s call to toss out the Clean Power Plan. And future power plants may not be held to tougher standards that would have largely prevented new coal plants from coming online.”

Vox continues, “China is waging an aggressive, multi-front campaign to clean up coal before eventually phasing it out — reducing emissions from existing plants, mothballing older plants, and raising standards for new plants. Unlike the US, it is on track to exceed its Paris carbon reduction commitments.

“In short, while the US dithers along in a cosmically stupid dispute over whether science is real, China is tackling climate change with all guns blazing. The US, not China, is the laggard in this relationship.”

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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A form of Restricted Democracy still exists in China at the Village Level

November 7, 2018

This may come as a surprise to many outside of China, but China is not a totalitarian country with an all-powerful dictator.  Simply put, China has an autocratic government that operates as a limited republic with a Constitution that fits China at this time, and individual freedom takes a distant back seat to harmony and improving the quality of life for the majority of Chinese.


China’s Approach to Social Harmony

New Politics says, “Elections of Village Committees and Village Leaders in China’s approximately 950,000 villages began in 1989 as part of a wider village self-government movement. The Village Committee and Village Leader are entrusted with managing the public affairs of the village. This includes managing any collective enterprises including land (the use of which is most frequently subcontracted out to villagers), building and repairing roads, maintaining public security, administering family planning issues, and helping the village to develop economically, socially, and environmentally.”

The Organic Law of Village Committees in rural China was enacted 1987 and implemented in 1988, allowing for direct election of village chiefs instead of being appointed by the township government.

In the beginning, these rural village elections might have been an experiment to see if this type of democracy worked in China, but with the election of Donald Trump in the U.S., any chance of China becoming more democratic probably died a necessary death.

One thing China doesn’t want to see happen is to lose all the gains erased by a president like Donald Trump who is allegedly illegally dismantling every progressive gain the United States made since 1900 and attempting to influence and control the federal judicial system through the U.S. Department of Justice.

In China, the Local People’s Congress at each administrative level, other than the village level in rural areas, hold direct elections, and elects candidates for executive positions at that level of government.

Governors, mayors, and heads of counties, districts, townships and towns are in turn elected by the respective local People’s Congresses Presidents of people’s courts and chief procurators of people’s procuratorates are elected by the respective local People’s Congresses above the county level. The President and the State Council are elected by the National People’s Congress, which is made of 2,987 delegates.

The Chinese Communist Party (CCP) has almost 90-million voting members, and 22.3-million are women. This makes the CCP the largest political party in the world.

Although the CCP controls the government because it holds the majority of votes, and decisions in China are made by consensus, China is not a pure one-party state. There are approved independent parties that belong to the United Front. For instance, in 2012-2013, eight hundred and thirty members of the 2,987 in National People’s Congress of the People’s Republic of China were members of the independents that belong to the United Front.

Under the CCP, what are two major examples that China has accomplished since Mao died in 1976?

In 2017, The World Bank reported, “The world as a whole has made impressive strides on poverty reduction. Since 1990 in fact, nearly 1.1 billion people have moved out of extreme poverty, which means that the number of people living on 1 dollar and 90 cents per day, or less, has reduced dramatically. …

“In China alone, nearly 800 million people (from the global 1.1 billion) have escaped poverty since the 1980s.”

In the last fifteen years, China reached 27,000 km (17,000 mi) in total length, accounting for about two-thirds of the world’s high-speed rail (HSR) tracks in commercial service. The HSR building boom continues with the HSR network set to reach 38,000 km (24,000 mi) in 2025.

Why doesn’t the United States, a country being torn apart by Partisanship and Donald Trump, have high-speed bullet trains like Europe and China?


Partisanship does not affect China’s autocratic republic. In China, there is no faction with the power to block the decisions of the majority like the elected Freedom Caucus in the United States made up of about three dozen tea-party people.

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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What Nixon Built with China Trump’s Wrecking Ball Destroys

October 24, 2018

In 1969, the Soviet Union was planning a nuclear attack on China. The USSR only backed down when President Nixon’s administration warned Moscow that such a move would start World War Three since the US would bomb Russia in retaliation.

The United States, under President Nixon (1969-1974), clearly indicated that China’s interests were closely related to America’s.

Then in February 1972, President Richard Nixon went to China and changed the course of history. His motives may not have been meant to encourage China to become the economic powerhouse it is today. However, if it weren’t for Nixon, the odds say the Soviet Union would have bombed China with nuclear weapons and China would have retaliated.

Nixon’s trip to Beijing wasn’t to see if China would help get the US out of Vietnam. Instead, the trip was designed to put pressure on the USSR with a goal to make them agree to strategic arms limitations.

Trump’s trade war with China is reversing everything President Nixon achieved with China.

The Financial Times reports, “Chinese soldiers join Russia’s largest military exercise since cold war.”

“Russia’s biggest military exercise since the cold war, and its first to be conducted with a country not from the former Soviet bloc, is the strongest sign yet of the deepening strategic bond between Moscow and Beijing that has been prompted by Russia’s souring western relations and may herald a redrawing of the region’s geopolitics.”

The Washington Post reports, “Washington is fighting a trade war with China and imposing mounting sanctions on Russia. The Trump administration has reoriented the U.S. national security strategy toward “great-power competition” with Russia and China, describing both countries as seeking to “shape a world antithetical to U.S. values and interests.” …

“The Chinese right now are sending a clear signal that, one, they don’t see Russia as a threat, which already should be a concern to the United States,” said Michael Kofman, senior research scientist at CNA, a U.S.-funded research organization based in Arlington, Va. “They are increasingly wishing to signal that increasing confrontation with the United States will drive them toward greater balancing behavior with Russia.”

But it isn’t just China Trump is alienating.

Business Insider says, “Trump’s fight with Turkey is helping Russia and Iran” … Trump is strengthening alliances between countries that don’t have America or the West’s best interest’s at heart. By punishing Turkey with sanctions, he is only pushing the country closer to other nations who see the strategic importance of having Turkey on their side.”

My question is this: Is Trump doing what Putin wants him to do, to alienate the United States from China and the rest of the world so Russia can step in and replace the U.S.?

What’s more alarming is what CNN Money says, “Russia has rapidly sold off the vast majority of its stash of American debt.” … “Between March and May, Russia’s holdings of US Treasury bonds plummeted by $81 billion, representing 84% of its total US debt holdings.”

While Russia’s holdings of US debt are insignificant, China’s are not, and Asia Times asks, “Russia is dumping US Treasuries. Will China be next?”

The Council on Foreign Relations attempts to answer the previous question. But no matter what happens, the fact is that what Nixon built with China is being dismantled by Donald Trump and the winner will be Russia.

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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Cyber Warfare is Evolving and China is taking the Soft approach while Russia follows the Hard path

September 18, 2018

The Washington Post reported, “Our research shows that nations such as the United States and Israel prefer to infiltrate enemy networks and precisely target and attack key military and government systems.” …

“China also primarily hacks other nations’ systems for military and industrial espionage purposes.”

Former President Obama said, “Every country in the world, large and small, engages in intelligence gathering.”

Russia, however, “stands out from other nations in uniquely using cyber methods to distort, gaslight and alter the views of the target population. Other authoritarian states use cyber methods to rig their own elections. But Russia remains rare among great powers in its targets and methods.” …

“U.S. intelligence services have concluded that Russia is conducting political warfare to alter the hearts and minds in its rival power’s population. That’s a far cry from what any other nations are attempting.”

Even China isn’t doing what Russia is doing to manipulate democratic elections and brainwash a rival country’s people unless we count “Crazy Rich Asians” a film financed by a US-based Asian film investment group Ivanhoe Pictures that partnered with Nina Jacobson to product the film that became #1 at the U.S. box office in August, 2018.

However there is a vast difference between Russia deliberately invading a democracy’s election system and programing voters to not vote and/or vote and elect liars, frauds and criminals like Donald Trump and what the Chinese are doing through major films to change the perception of China and its people from a negative bias to a positive one.

The Economist reports, “China is spending billions to make the world love it.”

“The (Chinese Communist) party borrowed the idea of soft power from an American academic, Joseph Nye, who coined the term in 1990. Mr. Nye argued that hard power alone was not enough to wield influence in the world. It had to come from ‘the soft power of attraction’, too. China was acutely conscious that it lacked it.”

Meanwhile, Russia under Putin continues to use a virtual sledge hammer in an attempt to end democratic freedoms.

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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China Joined the WTO in 2001

August 22, 2018

The BBC reported, “After 15 years of diplomatic struggle, China finally has become a fully-fledged member of the international trading system.”

China became a member of the World Trade Organization (WTO) on December 11, 2001. The admission of China to the WTO was preceded by a lengthy process of negotiations and required significant changes in China.

Many elements in China’s WTO accession agreement required improving the rule of law. When China joined the WTO, China agreed to ensure that its legal measures would be consistent with its WTO obligations and that led to China’s Rule of Law Reform.

China also made a substantial number of other WTO commitments related to the rule of law in areas of transparency, judicial review, uniform enforcement of laws, and nondiscriminatory treatment.

China reformed its judicial processes to ensure that they were compatible with its WTO commitments.

This transition from Chinese to western legalism hasn’t been as smooth as some critics wanted it to be, but it is happening, and it’s clear that in the last few decades China has made an effort to fit into the community of nations while retaining its own identity.

That might be explained by the differences between Chinese legalism and Western legalism primarily related to morality. Western legalism defends the rule-of-law but argues against the morality of law. In contrast, Chinese legalism, especially in the early Pre-Qin era, did not separate morality from law.

Chinese legalism was interpreted as the fidelity (loyalty) to the monarch in moral terms often as defined by Confucianism. In other words, morality in the United States and Europe is mostly based on the teachings of Christianity and many western philosophers while the morality of China is mostly based on Confucianism.

Understanding China’s history and the morality that’s part of its legal system is often ignored, especially by many ignorant Americans that judge China based on Western values and laws.

For instance, a conservative, born-again Christian, a former friend, once said to me that China needed a proper legal system. Since China already had a legal system, what did he mean?

I knew this individual for about sixty years, and I’m sure he meant that China should have a legal system like the U.S. or the U.K. After all, he claimed scripture guided his life and the Christian Bible has been around for centuries proving, to him, that it came from God. For this former friend’s approval, China had to bend its laws to fit Christian scripture.

However, the Chinese learned from Confucius while in the West we learned from the likes of Plato, Aristotle, Socrates, the Old and New Testaments, and many other voices that influenced western thought. I wonder if too many voices often lead to confusion, and that might explain why the Chinese civilization has been more stable over the millennia than the west has.

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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What if China and America Stopped Trading

July 25, 2018

After establishing relations with the United States and imposing the One-Child Policy, China, in 1986, opened the country to foreign investments and encouraged the development of a market economy and private sector.

China also started the long process to join the World Trade Organization (WTO). It took China another 15 years of diplomatic struggle to became a full member of the WTO. To join, China had to significantly change its economy. These changes were difficult steps for China and conflicted with its prior economic strategy. Acceptance into the WTO meant China had to engage in global competition according to rules that it did not make

The BBC reported, “China’s formal membership comes exactly one month after the 142 members of the World Trade Organisation (WTO) ratified its application at the world trade talks in Doha in the Gulf state of Qatar, and the Chinese government formally approved the deal.”

What happened to China after joining the WTO?

WTO.org said, “in 2001, China’s trade in goods was valued at $0.51 trillion, ranking 6th in the world, but by 2014, it reached $4.3 trillion, growing over 8 times.”

By 2016, China was exporting $2.27 trillion in goods and importing $1.23 trillion,” and OEC report said.

China’s top five export destinations were the United States at $436 billion (19% of the total), $250-billion (11%) to Hong Kong, $148 billion (6.6%) to Japan, $99 billion (4.4%) to Germany, and $87.2 (3.8%) billion to South Korea.  If we subtract the United States, China exported $1.834 Trillion worth of goods to the rest of the world.

China also buys products from the United States and other countries. It’s top four import countries were the United States at $122 billion (9.9%) in goods, $121-billion (9.8%) from South Korea, $120 billion (9.8%) from Japan, and $83.7 billion (6.8%) from Germany.

If we subtract what China buys from the United States, China imports good worth $1.08 Trillion from the rest of the word, and did you notice that China has a trade deficit with some countries?  If we focus on just South Korea, China bought more goods than it sold by $33.8 billion.

What goods does China want from other countries? China’s highest value imported goods are electronic circuits and micro-assemblies, crude oil, iron, cars, mobile phones, and then soya beans.

In 2017, China exported $2.2 trillion of its production. The EU exported $1.9 trillion that year.

There is also a common misconception that the United States doesn’t make anything anymore, and it doesn’t help that Donald Trump, a malignant narcissist, and serial liar, reinforced that thinking during the presidential debates in 2016.

What do the facts say?

The Balance reports, “2017, total U.S. trade with foreign countries was $5.2 trillion. That was $2.3 trillion in exports and $2.9 trillion in imports of both goods and services.” China exported $2.2 trillion to the world that year, less than the United States exported from its manufacturing sector.

How many jobs in the U.S. does that $2.3 trillion in exports support and how many jobs are at risk in the United States due to Mr. Trump’s trade war?

CNN Money says, “analysts say that tens of thousands of American workers are likely to lose their jobs—and upwards of two million jobs are at risk—more or less as a direct consequence of the Trump administration’s trade policies, and the retaliatory tariffs that follow.”

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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