The Americans and Europeans are complaining about China subsidising its industries to sell cheap and good products to them. This illogical narrative has got so much traction that the white men are going crazy tearing their hair off that this is unfair competition. They did not know the real meaning and value of subsidies on both sides of the coin. But their people know and are out on the streets to protest, wanting cheaper cost of living and everything.
The Chinese are as good as saying, I am taking lower pay, to eat less, to work harder and sweat more, to make goods that should cost $100 but selling to the white men at $10. The Chinese workers are actually subsidising the white men, to make them richer, make their money stretches bigger, to have the good stuff at a fraction of what they should cost. The Chinese are allowing the white men to steal their labour and wealth, just to earn a few cents, or at a loss.
But the white clowns are unhappy. They want their people to pay more for everything. They did not want discounts. Their lives have never been better if not because of all the cheap and good stuff the Chinese are selling to them. The Global South people are not complaining, enjoying the benefits of having to pay so little for so much, for things that they would not be able to afford.
In normal circumstances, the confident white men should be saying a big thank you to the Chinese workers for making them richer. But the dull politicians are concerned about trade deficits against China. That trade must be balance. In reality, in a free economy, in Capitalism, every country will seek to produce goods with competitive advantage, producing things they can produce well and not producing things they cannot do well.
The white men have moved up the economic and industrial ladder, producing better and more advanced goods and services at bigger profit margins. They should take advantage of their competitiveness in areas they can do best and make more profits along the way. But their stupidity said, don't sell expensive and high profit margin goods to China, sell China goods they did not want, and then complained that their trade balance are in China's favour.
China does not have this problem. China keeps innovating and keep moving up the technology ladder, producing better and more advanced goods and transferring the less advanced goods to other countries climbing up the ladder. China have trade surpluses with some countries and trade deficits with some countries. That is normal. There is no such thing as trade balance with every country.
When China faces competition or obstacles, like being choked by the island chains and Malacca Strait, China did not cry father and mother. China did not confront the problem with force. China would not fight a losing war, like not competing in goods and services that it could not win. China work around the problems, seek alternatives, open the western front, open BRI to bypass the chokepoints.
The white men can do the same, work around the problems, innovate and create better and more advanced goods and services in other fields and move ahead. But they did not do so. They seek to demonise China, wanting to fight China in areas and goods and services they are no longer competitive. They want China to tie its own hands and legs and let the white men walk all over them.
The white men should enjoy all the highly subsidised goods and services from China, especially the Europeans. The savings from importing cheaper Chinese goods and services can be applied to make themselves more competitive in other markets with their goods and services. Buy low sell high. Fight in the American market where they can be competitive, and the Americans have the money to pay for them.
Take full advantage of cheap subsidised Chinese goods and services, like the people of the Global South and stop complaining and look silly. You don't have to confront every problem square on. Mao said, you fight your war, I fight mine. Fight in areas or sectors you have advantage over others.
Unfortunately, the white men have few areas they are still having advantage over China. The future is very grim for them as they are unable to benefit from the goodies offered by Chinese workers, subsidised by Chinese workers who are prepared to get paid less and eat less. And they are forcing their own population to pay more by imposing sanctions and tariffs on these goods and services. What idiocy! Turning Capitalism upside down. The people in Europe are rising to bring down their silly leaders who are not affected by the high cost of living. American top 1% owns wealth equaled to 90% of all Americans.
Oh, another easy way out. Stop buying Chinese goods and your trade balance will balance by itself. Buy expensive American goods and be happy with it?
1 comment:
While China is subsidizing industries to make things even cheaper for the rest of the world, the USA is subsidizing its semiconductor, AI and other sectors to make chips, products and usage more expensive for the rest of the world. China is already making AI usage cheaper, which is making USA AI entities nervous, paranoid and at wits end.
Those big AI investments of hundreds of billions by big tech have not led to a corresponding profitability to show and is a huge problem going forward. The only way out is now using the same 'modus operandi' to ban Chinese AI models from being used inside the USA, which is progressing well as they work behind the scenes to fabricate National Security issues to justify their action. Knowing what is going to happen, big AI techs are using IPOs to bail themselves out and let the public carry the bag.
Nothing is more apparent talking about who throws more subsidies than the billions given to semiconductor manufacturers building factories in Arizona from Taiwan and South Korea. The problem for these factories is where the market is coming from and whether they can cope without subsidies going forward. They will be forced to invest more in building energy infrastructures as well, as there is a massive shortage of power for keeping these factories, AI and data centers running.
China is giving subsidies to its own semiconductor and AI sector. What is wrong with doing that when the USA is doing it itself. Is what China doing going against International Law or their Rules Based disorder? What about themselves if they look into the mirror.
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