Written by Michael Thervil
The question is why? Forget the fact that China is the manufacturing hub of the entire world, but to keep things in perspective, China makes nearly everything that Americans consume daily; from luxury items all the way down to every item you can find at your local Dollar Store – which will soon, according to reports, be going out of business. The reason for America initiating sanctions on China is because America is accusing China of over producing products and engaging in unfair competitive practices. In short, America is attempting to bully China into cutting down their manufacturing capabilities so that America can keep up.
What happened to America's belief in capitalism and free markets? Why is America attempting to manipulate the “Hidden Hand” of the free market to its own benefit? The answer is simple; America cannot compete with China when it comes to manufacturing and productivity. Furthermore, America has no one to blame but itself as to why it's finding itself in this position. The reason why we at VEDA Magazine can say this is because if you look back in time, it was during the Clinton Administration that America gave China the ability to not only manufacture America's products to boost the spending power of Americans. It was those efforts to cheapen things for Americans that gave birth to the “Lego Economy” that America has today. It was the Clinton Administration that allowed China to acquire the ability to both create the cheap goods for Americans, while allowing China to compete in the global markets, where they previously didn't to the extent that they are today.
It was the North Atlantic Free Trade Agreement (NAFTA) under the Clinton Administration that allowed China to rise at the top of the food chain when it comes to manufacturing the goods and commodities for world consumption. With the United States Secretary of Treasury Janet Yellen recent visit to China, to essentially threaten them, it has done nothing more than motivate China to further double down on their manufacturing capabilities. Going back to America placing failing sanctions on Russia, but still relying on Russian nuclear resources, America is doing it again with China. But instead of placing sanctions on China and relying on nuclear resources, America is placing sanctions on China and is now risking not only its economy, but the entire world's economy. Remember, China makes nearly everything.
Another thing that's worthy of mention when it comes to American sanctions on China, is the fact that America is trying to stop the growth of the Chinese Electric Vehicle (EV) Market. With the rising inflation in America due to its monetary policies, the average brand-new car costs roughly $50,000. In contrast, a brand-new Chinese EV from BYD cost roughly $13,000 and the Chinese can crank out more EV's than American automakers can keep up with. There is simply no way American automakers, and the oil and gas industry can compete with that level of competition. So, this is another reason America is slapping sanctions on China.
Socio-economically where America is today, is due to America not focusing on building its industrial, manufacturing, and infrastructure bases within its own borders. Instead of seeking to profit off war, it seems that America should have been taking the path of the Chinese; and that’s being in the business of business.
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