Tuesday, March 6, 2012
China and US --- Doing Business and Turning a Blind Eye
If a private US company wants to benefit from doing business in China, PWC is ready to help: (see link below)
Access to 1.3 billion people and cheap labor are the main reasons to get involved in China.
Of course nothing mentioned about human rights abuses, Tibet (see links) or the forced removal of peasants from China's rural areas to make way for factories, dams and other centrally planned infrastructure. Nor is there any mention of the ruthless repression of democratic efforts within China.
The link below gives an overview of the major US corporations with a presence in China:
Most of these companies are MANUFACTURING their products IN CHINA and NOT EXPORTING to China. This is a critical point: their presence revolves around CHEAP LABOR and ACCESS to the internal Chinese market and Asia in general.
And as we await the US trade deficit number later this week it is worth noting how US investment in plant and factories in China will most likely accelerate over time because the US market for many products is SATURATED and as the Chinese middle-class grow, there is no point is making consumer and some non-consumer products in the US in the future.
This economy will be further hollowed out!
Despite the appallingly nauseous rhetoric coming out of DC and from the mouths of politicians and presidential candidates, US jobs will not be coming back to the US anytime soon.