"My Ignorance is showing" Question?

Solar71 said:

Just a quick question.

When people say that the Chinese "manipulate" their currency, and "subsidise" their
manufacturing companies what does that mean exactly ?

How can they manipulate thier currency ?
How does subsidising thier own manufacturing hurt us ?

Not trying to pick a fight, just trying to understand more clearly.

If thier governmant wants to spend its own money subsidising its own companies how does
that really give them an unfair advantage ?

And if it does, then why cant we do that as well ?
Whats stoping us ?

thanks

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Cornilsn said:

We do subsidize industry. Period. We probably don't subsidize all the right ones, but thats going to depend on who you ask and what industry they're in. I personally think the manufactor of low dollar-density, low tech items should absolutely NOT be subsidized. Let the chinese buy all that work.

One way they do it that I personally know of is they have a "metal casting school" that is government funded, but is really a front. Its actually run as a business and has been bidding against us onb several product lines.

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Solar71 said:

Thanks... ok so the chinese are cheating ? Is that what trump is talking about when he speaks of the chinese manipulating the market and thier currency ?

If china is cheating or doing something it shouldnt be, shouldnt we be punishing them ?
Or shouldnt we be doing the same thing ?
The playing field is not level, they need not take care of their workers. the way we do.
Seems like they are treated like cattle. How does china get away with doing things like that ? Isnt there a commitee for human rights and fair trading practices ?

This all seems very confusing to me... How does a country just ignore trading / human rights laws and regulations ?

Sure if we had no minimum wage and zero health care for employees and could over work anyone we wanted and pay them pennies we would be super competetive as well...

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Miguels244 said:

What is cheating?
For many years the US made the rules so we could define it. That is no longer true. We have entered another era. It is a far more capitalist dog eat dog world now that the big dog is getting old.

The way China treats it's labor is exactly like we did until the unions came along.

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