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Research Paper on Importing and Exporting With China
Many people would think that trade in commodities is mutually beneficial between countries. The U.S. economy depends on profit world, and we understand the advantage of using cheap labor abroad through FDI. However, what happens when a state-funded in China strategic buys raw materials like steel and petroleum. I'm not just talking about an even rate, I mean "more than 90% of World's crude supply of iron and total control over U.S. oil supply.1 Fortunately, the U.S. government saw what they did and made it illegal for a another province for a controlling stake in U.S. oil supplies to buy. On a side note, it was only five years ago that the North Korean government a huge plans for billions in counterfeit U.S. currency to finance production. Everyone knows that U.S. forces are superior to any other country, but there is one thing we have not. China has a population of 87 million is higher than most European nations' .2 Many of these people live in less fortunate circumstances. You could even imagine they want a better life and the right leader could influence that they do so at the expense of other nations.
We strongly numbered, so what makes our superior military forces?
The answer is technology, industry, petroleum, and iron. Technology is always for sale, or it can be gathered through espionage. China can buy the same level of technology intermediaries or allied governments. The industry can be built with economic growth. Currently, China is the number one growing economy in the world. It almost checked our oil supply in the interior and failed, so decided China oil from Saudi Arabia to buy through German intermediaries. Now our gas prices going through the roof and securities analysts say some sort of market Fluke by a belief that oil prices will keep rising.
Iron, the main export product, I would like discussing is five times the original price four years ago, when China started buying up the world supply of pig iron. We have them with the iron to cranes and other machinery to export to the U.S. and other nations to create, but most of the iron is stored for future use in China. What future use? We can only speculate. Why would China stock their growing supply of iron and have to purchase, regardless of the price (literally)? What big plans they have for such an immense supplies of iron? Are not bullets, guns, factories, and tanks made from iron? Absolutely, here is a piece of an article on the Chinese economy.
"In the booming Chinese economy in recent years, fueled by large inflows of foreign direct investment (FDI) and a rapid growth in exports, has become an important force in the global economy. This year, China surpassed the United States as the world's largest recipient of foreign direct investment and bilateral trade surplus with the United States reached 117 billion U.S. dollars in the 12 months to August 2003. Both foreign investment and export growth created strong demand for currency of China, the Yuan. All things equal, such a demand pressures cause the Yuan to appreciate against the dollar and cause the external position of China to return to equilibrium. "3
Since China is the number one growing economy in the world, they also have a growing number of currency against the U.S. and other nations. China is daily becoming more industrialized. They are used to a purely state-controlled economy, but they are starting to develop into more of a free economy in some areas. In general they should not conclude so many companies not paying regular bribes to officials, it is certainly a step in the right direction.
The U.S. wants to promote free trade with China because of their enormous population. This means that U.S. companies would have access to a vast new consumer market. It also means improving the quality of life in China. It is also generally known that many native Chinese women from prostitution to perform acts or to marry only to support their families. It is also common in China to see people walking barefoot because they can not afford sandals, or seeing people, including children who are starving. Moreover, China has more than 300 organized crime syndicates with a history going back the Shaolin Monks. China is a nation desperate, so desperate that they engage in foreign currency scam to the value of the Renminbi (Yuan pronounced inflated). In 2000, the exchange rate was 8.3 Yuan per U.S. dollar. Today, the exchange rate is 7.6 Yuan per dollar. Here is the second part of the article above.
"But all these things are not equal: China pegs the Yuan to the dollar at a fixed rate and strictly controls the importation and allocation of foreign exchange. In order to fixed value of the Yuan to maintain a residual supply to China Yuan to counter the growing demand for its currency, China achieved this by buying dollars in the currency markets. Between December 2000 and July 2003, China has more than its foreign exchange reserves doubled from 168 billion U.S. dollars (16% of GDP) to 361 billion U.S. dollars (31% of GDP). "4
"How should the U.S. respond? On nine occasions between 1988 and 1992, the U.S. Treasury found that similar external surpluses accompanied by much smaller accumulation of foreign reserves were proof that the countries-including China-have manipulating their currencies for trade value competitive advantage. When such a determination is made, U.S. law requires that the Minister of Finance to carry out negotiations to end such manipulation. Current data suggest that China is engaged in such manipulation of the Yuan for competitive gain. "5
Today, foreign "investment, combined with swelling of the export earnings from China, have pushed the country foreign exchange reserves over 600 billion U.S. dollars' .6
One thing I learned from experience is that people and desperate people trying to steal from others in general can not be trusted. This is why, among all I meant the other evidence above, I do not think we should let the Chinese government do what they want. They should not have a majority of the world iron, oil or our country's economic and physical security in the palm of their hands. What are good tanks and trucks that supply does not have gas? This may seem silly today, because we are not at war with China.
In support of this opinion, many nations such as Japan learned long ago that warfare in the physical sense is foolish and destructive, because it affects the production of the nation, unless they can build new plants as fast as their enemies can blow them up.
Today, modern warfare is the real economy. If China completed American businesses that depend on iron buy at a certain price for a profit after U.S. labor to earn, then they take our market share and our productive capacity depends on whether China will sell us what we need. The prices are good today, because Chinese labor costs are low, but it will not stay that way according to economic theory. Eventually, the FDI, which our nation beyond, will lead to more jobs and economic prosperity in China. The end result will increase wages, and hopefully it will improve working conditions.
However, if China does not sell to us and they are doing the same routine bullying in other international markets, then we are a serious economic and military disadvantage. Should we trust in China and believe that they want change for the better? Here is an article that some light shed on this question.
"China wants the rights to suspend talks with the United States. The news came after Washington said yesterday that serious violations of a resolution condemning Beijing to the UN Human Rights Commission in Geneva is currently underway. The Chinese foreign minister called the action of Americans a "serous interference in internal affairs of China. "China's Vice Minister Foreign7 said that the" clash deliberately provoked by the United States now have some seriously damaged the basis for dialogue and discussion on human rights between the two countries. China must immediately suspend talks and discussion. "Yesterday, U.S. State Department spokesman Richard Boucher said the U.S. Government the disappointment of Beijing imperfections in improving human rights in the country after the commitments it undertook in 2002 and 2003. Boucher also stressed Washington expressed concern about "backward steps" taken by China, as reported in the world of U.S. government human rights of the latest published Last years report in February asked the United States to pass a resolution stating that Beijing had made limited but significant progress on human rights. The resolution has been presented each year after the brutal repression of student demonstrators at Tiananmen Square in June 1989. This year there are various human rights organizations like Human Rights Watch, requested that the United States back to a point on the blacklist Beijing. Even the U.S. trade union representatives requested that the Government of China to pay for how it trades the workforce. Meanwhile, Amnesty International called for a moratorium on the death penalty in China, reporting that the Chinese legal system is not fair process to ensure and often punishes innocent people. Yesterday, the AI published a report titled "conducted according to law? '' The report was released following statements made by a Chinese member of parliament who said that every year at least 10,000 people sentenced to death in China 5 times more than all cases of capital punishment worldwide recorded. "8
The Chinese people are very much like our own, except that they communicate through contextual and women are not very highly rated in their society. They also have four different cooking styles based on four different regions. They speak different languages in each region, and they have a wide range of different traditions based on the past cultures that lived there before. China does not tolerate freedom of speech and they often kill anyone who is suspected to say negative things about the current government. There is no defense or
due process and fundamental human rights are not valued by their government. Their economy is state controlled, but they are slowly changing in a free market economy.
I think that trade with China is of mutual interest, as long as they are not buying up large quantities of raw materials affect our national security. After the 911 attacks on New York and the Pentagon, port security is very strict in US.9 Port of Tacoma and the Port Seattle have cameras, high fences and security personal strategically placed. They carry more than before customs inspections and canines are often used to help people find and smuggling. The U.S. also has a satellite system that detects nuclear radiation, infrared (heat signature), records and filters every electronic conversation in the U.S., and video recordings the activities of the ports in the world. Also pay very close attention in the refrigerator and abnormally heavy containers for biological weapons and nuclear materials shielded.
China claims No major security measures other than custom inspections accompanied by armed guards. Custom inspectors often accept bribes to export and processing, which huge backlog for companies that did not pay bribes creates accelerate or paid less. Dogs are also used to detect contraband, but they use German shepherds instead of beagles. German Shepherds are know to be effective in maintaining security and hunt humans. However, beagles have two hundred times the ability to sniff contraband. This means that their port security seriously lacking unless they physically inspect every crate, they do not normally do when a bribe is taken to speed up customs.
Recently, the Port of Tacoma purchased three cranes to unload containers from China off the ship. They bought scrap from suppliers in Washington state, the melted iron to below, the cranes are manufactured and sold them back to us for less than domestic companies can make.
Currently stocks of iron and managed more than "70% of the steel import international ".10 U.S. laws relating to customs are identified as security in the interior. Otherwise, maritime law applicable to the shipments.
The political consequences of the removal of certain funds to China will give them an enemy. In order for the U.S. to be effective in the removal of the massive purchasing of iron campaign by China, will need all the allies that the current trading partners to do the same. This would also make enemies of China, and suppliers becoming very rich by selling their commodities at a higher price to China. This means that international trade must be an important reason to cut or limit them to China other than the U.S. economic prosperity.
Culturally, we also believe that the Chinese want a better life, and they want independence. It is unlikely that the U.S. will be able to move the Chinese government to give people their human rights without completely replacing their government or wait many years for their human rights policies to catch up with the rest of the civilized countries in the world.
Geographically, China has taken over Hong Kong, which is the largest shipping location of Chinese imports and exports. The decision by the Chinese government to take over Hong Kong ensures their ability to distribute goods internationally without major changes in global distribution. Economically view we must understand that China has much to offer in terms of cheap labor, and outsourcing, but it can come with a steep cost in the near future.
Letters the loan guaranteed by international banks in Malaysia and China based on current deposits. This ensures payment upon receipt of goods for both imports and exports. Global marketing procurement process is the same as in the U.S.. Foreign bidders are required to send a proposal to the government entity awarding the contract. Whether they choose Buying or not a foreign source is a balance between economy and price-driven support of local businesses.
China has no restrictions on the treatment of their employees, aged workers, the hours they work, the health of workers and their working conditions. U.S. employers must obey laws on the treatment of minors, overtime pay, payment of wages, health and the payment of unemployment benefits, discrimination, etc.
Foreign investment in China is carefully controlled in specific sectors and industries. Foreign Investment in the U.S. is allowed as long as it does not negatively impact our national security. This is why the U.S. government stopped China from purchasing a controlling position in the primary U.S. oil supplier. It is almost a guarantee that they will try again.
If you choose to do business in China, please carefully consider the consequences of your actions. Making a big win is very important, but it can never be at the expense go of our lives, the lives of our children or the world stability and security. I think the world has a tremendous opportunity for daily change for the greater good, perhaps Our enemies will decide that building a better world for everyone is better than small arguments over land, money and religion.
Bibliography
Flannery, Russell. At Your Service, China! New York, NY: Forbes, 2007
Goodman, Peter S. China Ends a fixed rate currency. Washington DC: Washington Post, 2005
Hersh, Adam S. China 's currency manipulation and the American trade. Washington, DC: Economic
Policy Institute, 2003
http://www.epinet.org/content.cfm/webfeatures_snapshots_archive_10302003se
Hill, Charles WL Global Business Today 5th edition. New York, NY: McGraw-Hill Irwin,
2008
R. M. Beijing suspends human rights talks with the United States. Geneva: Asia News, 2004
http://www.asianews.it/view4print.php?l=en&art=524
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