Should the US just disengage trade with China? Think of the issues of regulatory attacks on US companies or the state-run media campaigns against foreign companies to create consumer backlash, all to serve the political objectives of other international disputes? One of the latest issues which has concerned me are the price controls put forth against US auto makers selling into their consumer markets. Let’s talk.
You see, there was a rather troubling article in the Wall Street Journal on August 24, 2013 titled; “China Criticizes Car Prices, Says Auto Makers Too Strong,” by Rose Yu, Colum Murphy, and James Bennett. The article stated; “Chinese officials said they are planning to revise how cars are sold in the world’s largest auto market amid state media complaints over pricing, a development that could give foreign auto companies less sway over the nation’s retail dealerships,” yes, I agree and it will also certainly benefit the Chinese auto makers over let’s say a GM.
Further, this is troubling because the “complaints” in the state media were internally generated by the state itself, then blasted all over the air waves to the people, and then this created controversy is going to be fixed by; you guessed it the “state” which caused the all the ruckus the first place. What this is an attempt to put in price controls on foreign companies to give their own auto makers an unfair advantage. Typical of the Chinese, but it is also unfair and shows just how they do business – in fact, it’s just one more example of free trade manipulation.
Should we disengage trade with China? No, that would be a disaster, unfortunately, they are not letting us sell into their markets, and there is a lot of protectionism masquerading as moral high ground, when the reality is nothing similar to reality. So are we perfect? No, actually we are not, we allow unions to manipulate our system here and interfere with free trade policies, we also have corporate interests lobbying our government and state department to make trade rules favoring themselves when over all they cause conflict and hurt our economy and global free markets.
What should we do? We should call all manipulation regardless of who creates the rippled disturbance exactly what it is. We need to be honest with ourselves, and see that everyone else also walks the talk, or we should call them out, offer up severe penalties until the situation is rectified. America should not bend over for anyone, nor should we attempt to economically enslave our trading partners to serve the few. Please consider all this and think on it.
