Why China's dragon will eat America

your say March 20, 2014 00:00

Re: 'The 'Made in China' Fallacy", Opinion, March 15.

The conclusion to this article is likely to be a fallacy itself. “Americans invented most of the disruptive technologies that both make global supply chains possible and undermine traditional labour. If we got ourselves into whatever fix we are in, we can surely get ourselves out – but only if we stop looking for old dragons to slay abroad, bolstered by statistics firmly rooted in the past.”
While it sounds like a convincing argument, the reality is quite different on the ground. China’s rampant unregulated industrial pollution of cities, exploitation of labour, legions of stores selling vast quantities of illegally pirated fake goods, and a tradition of companies paying off corrupt law enforcement and officials, as well as state-funded enterprises using subsidised or free government land and long-term low- or no-interest loans with virtually no tax burden, means that if they couldn’t succeed they’d be 100 per cent worthless and void of competitive ability in the global market place.
These are known factors in the “China Success Story”, which the author is either is unaware of or unwilling to focus on. Either way, the lack of balance to his argument is telling of a dearth of research of the ugly realities behind China’s rise.
Fair trade seems not to be in China’s vocabulary, or lists so low amid the priorities of greed as to be noticed too little or not at all.
Caveat Emptor