Six major industries in the United States lobbied Congress for special protection. These six industries are textiles, clothing, wooden furniture, color TV, semiconductors and Louisiana shrimp. They said that more industries will follow suit. Last summer, new york's Charles Schumer successfully held a "preview" in the Senate, and passed a bill by a majority of 2:/kloc-0:, demanding a 27% tariff on all exports from China unless China allowed the RMB to appreciate.
Some big companies in the United States have remained silent; Imported products are partly responsible. Many enterprises are good at playing the China brand and constantly move their production lines to China, because the wages of China workers are only 1/30 of those of American workers, thus greatly reducing costs and maximizing profits. Ford Motor Company and General Motors Company both moved their main parts production lines to China for their own benefit. They represent the general trend. Wal-Mart, the largest retailer in the United States, imports 20 billion dollars of China products every year. It is estimated that since 1980, China has saved about10 billion dollars for American consumers because of the price reduction.
However, the production cost only accounts for a small part of the final value of a commodity in a shop or window. Most of the value is distributed in distribution, transportation, wholesale, credit, promotion, advertising and other links. Therefore, it is meaningful to adjust the domestic production in the United States to maintain the cost advantage. This practice will consolidate the dominant position of American brands in the global market.
The victims are blue-collar workers who work in closed or threatened factories and small and medium-sized enterprises and are part of the supply chain of large multinational companies in the United States. Some people worry that this may happen in five years. Therefore, Democrats and Republicans may form an alliance. The former is worried about the loss of workers' rights and human rights and unfair competition, while the latter is worried about the fate of small-town enterprises in the United States and the rise of the production party.
China people will further try to repeat some practices of Europeans and Japanese in the past, that is, to acquire American enterprises. This may also become a major friction point between the two countries. The total investment of foreigners in the United States has reached $654.38 +0.5 trillion; China's investment is very small (although they have $200 billion in US Treasury bonds). Now China, as the fourth largest economy in the world, will definitely increase its acquisition of American assets. However, in the current atmosphere, such actions will cause a fierce reaction.