The United States of America and the E.U. have just about had enough of China’s “sheer competitiveness” in manufactured goods. Not difficult on China’s wage rate for factory workers of 25-50cents per hour (The Cutting Edge,SBS,Made in China,17.5.05,No. 8446611) and Africa’s rate of a dollar a day (The Cutting Edge,SBS,The Dollar a day Dress,24.5.05,No. 82824215).
Germany’s ruling Social Democrats have been dealt a crushing defeat by the voters of North Rhine Westphalia,Germany’s most populous state of 18 million and once its manufacturing power house. With 1 million of Germany’s 5 million unemployed in this state it is not difficult to see the effect of cheap Chinese goods and Turkish ‘Guest’ workers have on the economy.
McGregor discusses China’s manipulation of its textile exports by employing export tariffs to restrain the surge in shipments since January 1st when the global apparel system ended. This was done at the request of the U.S.A. and the E.U.,Chinese Howard of course did not take part,and they further demanded that China stop pegging the Yuan to the dollar which makes Chinese goods less expensive.
McGregor does not seem to understand that China is only interested in what is good for China. Her global trade surplus of $132 million this year and the creation of 20 million new jobs are at the expense of the West.
China’s rulers have their problems but these problems should not be solved at the expense of the West.
The Chinese do not expect their leaders to give ground and we do not expect our leaders to bow to China.
Wal Mart,like all greedy International Corporations,sees only profit when it exports American jobs. Many people in the West could not care less if China loses control of the World market and our investors lose their shirt. Many western commentators seem to glory in China’s emergence as a World power at the expense of the West. Perhaps they should try working for 50cents an hour.
Our wealthy work force enjoys goods made with sweated labour. They will not be so keen if they join its ranks.
