THE CHINA QUESTION Twenty years ago each and every thing was manufactured in the USA, now;

every thing is manufactured in china. There is nothing that is not manufactured in china today. Kids books, kids puzzles, clothes, caps and almost every thing are manufactured in china. Why cant these be made in the US? A woman in the USA refused to buy any thing with a made in china tag. She believes that the working situation in china is not fair that is why she boycotts chinas products. That US woman does not want to support the china economy. Now days almost every thing the people of the US buys are made and manufactured in china. What does this mean? What does the US contribute to the rise in the Chinese economy? How does it affect the US economy? China is a country with out freedom of speech and with out democracy. The US lady refuses to buy china product not just because it is contributing to US unemployment but the reason is moral. It is because of an authoritarian government that controls media and religious practices. The tremendous success of china in the world today is because of its torrential and gigantic exports so the question is how does china manages all these exports? Workers that work in the factories of china come from all over the country. The working opportunities and labor rate in china is higher in the cities as compared to the villages so the people from the country side rush towards the mega cities of china in search of employment and work. And these workers are the basic fuel of Chinese economy. The Chinese producers report that their profits were large initially but these massive profits couldnt last because of the increased competition in the country and the intervention of the middle men in china. These middle men do the work of matching the manufacturer and the consumer and make up a very significant portion of the profits which is affecting the profits of large scale manufacturers. Some Chinese are so inspired by the western business world that these Chinese have even changed their names to western names. Every day, china exports almost billions of dollars worth goods to the US. This economic boom of china is a reflection of the late 1793. In 1793 china was more powerful and economically booming than the west which made the Britain and the west envy and frustrated. China at that time isolated its trade from the rest of the world especially the great Britain as the Chinese believed that they were no longer in need of goods of the world and believed that they were very powerful and self sufficient in the production. The Britain went to china with a delegation and aim of that visit was to convince the government of china to liberalize trade but the meeting went bad and the china detached itself from the rest of the world and at that time the west started booming because of its intellectual property theft that brought the industrial revolution in the west and china missed that revolution because it has cut itself from the rest of the world. Later, the Britain came to china and offered a good to the country named as opium, at that time china was drowning in the problems of poverty, unemployment and social and moral disasters. The condition of china was pathetic. The Chinese government destroyed all the opium brought by the Britain in china and this led to the first clash between the china and the west and a war began in which the west won and captured 5 trading ports of china.

In the US, people have different opinions about the Chinese; some Americans believe that Chinese are low cost, while others claim them to be hardworking people. Almost every US product is manufactured in china. China makes a lot tons more than it buys. What are the reasons why American firms choose to manufacture in china? Thats because Chinese are dump and duffer people, they have zero creativity and no sense of questioning. They do exactly what the US wants them to do and the Chinese dont ask questions ever. Despite the fact, that there are language and cultural barriers that the US manufacturers face when dealing with China but the cost of production in china is very attractive that derives the US manufacturers towards china. The cost of production in china is almost half the cost of producing in the US. Furthermore, it is not easy to work with the US manufacturers because they are very sharp and they can easily fool you. Also the US factories close on Thursdays and their worker leave early on Fridays and also they sometimes deliver poor quality materials. Whereas in china, factories always remain open because workers live and stay in the factories at night and they work (could be called as exploitation of Chinese labor) but this benefits the producers and they produce bulk of quantities). The biggest and most powerful skill of china is its LOW COST CHEAP LABOR ASSEMBLY line that gives china a leading edge over all other countries. China imports raw materials and machinery from all over the world and assemble it in China. Why do they just assemble in china? Because a) china has ultra modern infrastructure b) government policies that promote export c) world largest pool of cheap labor. The people in china dont want to earn more, they only want to earn that will keep them hand to mouth. Chinese workers make US $200 per month at maximum which is a moral question that why do we buy from a country that is exploiting its workers. Some consumers of the US, boycott china products because china is exploiting its workers and the Chinese workers are told that the salaries they are earning are good salaries. People from all the rural and village areas of china are rushing towards the cities for work and now there are not many people left in the villages to work. All those left in villages are either too old or too young to work. The biggest problem in china is the bureaucratic HUKOU system. This system means that all those people who are born in cities will get high education, low cost and free education and medical services. Whereas, those who are born in villages are not entitled to all those resources, even if you are born in a village and move to a city does not mean you can get all the resources since your registration of birth is in village. Chinese need to create 25million jobs every year to keep up with the rising population need for employment. Chinese keep their currency artificially low to stimulate their exports and they keep their wages low so that their cost factor remains competitive. What is the impact of Chinese economy on the US manufacturer? US claim that the machines that they produce cost the same as it costs to china, the cost of raw material is the same as it cost to china except for the labor, US couldnt compete with china because china has extremely cheap labor. Now, all of the US manufacturers are running towards china. Only the US military vehicles and equipments are manufactured in US since they are not allowed to be made outside. The US

manufacturers are benefiting in the sense that they are laying of expensive US labor and they are running in china to hire cheap labor. The beneficiaries are big outsourcing companies that are winding up their operations in the US and running towards china to enjoy the cost factor. Also, during the past years the American life style has changed because china has been offering so cheap products to America that almost every American can buy the Chinese goods and enjoy the life. In order to keep their exports super competitive, Chinese sell their own currency in the market and buy the US$ However, some US manufactures like the new era cap making company has not left US yet as they believe that the time will change and the economy would go round again. But they are facing many problems operating in the US. 50 years ago china was the worlds least likely country to become the worlds workshop. How did china come to make all these things? A century of humiliation was led by china in the past due to the foreign (Britain) intervention. Then, in 1949 came the era of Mao Zedong as he brought the people from the villages to the industrial city areas. In 1966, Mao Zedong brought Cultural Revolution. In 1976 Mao died and Maodic Doug and he introduced economic reforms and he became committed in transforming chinas economy. His reforms lifted 300 million out of poverty. Right now the communist party is in rule of china. The communist party limits religion, liberty and freedom of speech. In china, the government has a lot of influence on the level of knowledge and awareness the people have. For the US, human rights violation factor is also a reason why they reject china goods. China is not a very open society and people of china have to adopt. People of china have no other option but to accept it. For example, there is censorship in china and people dont like it but they realize that they cant change it so they have accepted it. In the Xingjian province china live some ethnic people that were free from china until the government took over and so there was a clash between the Chinese government and these ethnic people. Government say that area this is an unsafe working ground for Islamic terrorists and so the old city is being demolished so it is also taken as a cultural assault and any people from under 18 are not allowed to enter any mosque there. In 1993, President Clinton asked for some conditions to be fulfilled by china and these conditions were for human rights in china but Clinton faced a pushback from both the business groups and Chinese governments. People born in villages are not treated properly In 1989, Zhao Ziyang wanted to improve the condition of china and so he worked for increasing exports and controlling inflation. The Chinese government has created its own version of history and the government skillfully shields educated English speakers from outside news. The world wide best source of information is the internet but here in china all the sensitive information is censored, social media sites like facebook, utube and twitter are

blocked in china so that people cannot gain knowledge. So in order to enter the World Wide Web the Chinese people have to break the firewall through the proxy server which is done by some expert computer operators of china. The major conflict between the west and the china is that western people believe in openness and democracy whereas the Chinese government does not promote openness in the country. US believe that they have provided their people with all the rights including the human rights and this does not happen in china. Chinas government is authoritarian unlike the west. In china the free flow of ideas and opinion is not allowed. The environment in china does not promote creativity due to which the upcoming students are absolutely not innovative. China imports all the machines as they have zero innovation and creativity so they import all the machines and equipments from abroad. China purchases the US technology and they offer US some policies. US is attracted towards china for 2 reasons The first is that china offers very low labor and 2) the market of china is huge But in return the china government makes US government make 2 sacrifices 1) the products of US made in china must be made of a huge amount of raw materials of china 2) the china also gets the formulae and blue prints of the products and equipments that the US is producing in china By doing this The US companies are planting the seeds of their own destruction. China claims that in next ten years they will become innovative and they will no longer be in need of US technology to import as they are getting the US technology these days so rapidly that Chinese have a strong believe that they will beat US. But US believes that the key advantage that US has over the Chinese is their universities and innovative generation. US says that Chinese can never outsmart US because Chinese are dumb and they are no innovative whereas the US are very innovative and sharp and they will always come up with innovation that china will always be dependent upon. Furthermore one more difference between the china and the US is that the US government is short term oriented and the Chinese governments are long term oriented.