While I seldom agree with any of the Washington Post’s writers, here is one column I do agree with.
There is an old business saying; “Don’t leave money lying on the table.” In other words, get a fair price for your product. China is getting far below a fair price for their product. And has been and reportedly still is subsidizing exports to further reduce exporters costs. The bottom line? A high percentage of Chinese products are not only priced below fair market price, but priced below the actual cost of production.
The result has been devastating. Manufacturing, making stuff, should account for 28% or more of America’s Gross National Product. Because so many industries have been enticed to move to China, manufacturing is only 11 percent of our GNP. Of course, the quickest way to industrialize your country is to de-industrialize some other country. And that is exactly what China has been doing. And you and I are the victims.
If the United States is to survive, we must re-industrialize. And if China is to avoid a trade war, they must make progress toward pricing Chinese products fairly on the world market.
The one will take a change of philosophy in Congress and the White House. The other – will only come to pass when the Chinese decide it is to their profit to do so. And the sooner the better.