China’s edge
Regarding “Governor weighs in on tariffs” (Page B2, July 1), the United States has been under an invisible attack for years. Few citizens have been paying attention, and politicians have ignored it. The media reports a distorted picture of this war. President Donald Trump announced tariffs on steel and aluminum beginning March 23. Europe and China responded, threatening tariffs on American products.
The United States is the most pro-trade economy in the world. The European Union imposes a 10 percent tariff on all U.S.made cars and foodstuffs. The EU and China have been attacking the United States economically for years and have been able to boost their economies at our expense. Now Donald Trump is accused of starting a trade war because he is fighting back.
The Chinese government helps its big businesses sell product much more cheaply with help of government subsidies. In 2013, it is estimated that China spent up to 1.5 percent of its economic output on subsidies for export businesses. The subsidies have been instrumental in concentrating a tremendous amount of manufacturing activity in China and undercutting foreign manufacturers. Since 2000, the value of Chinese exports more than quadrupled.
If American companies want to sell in China, it is much harder. Within some industries like energy, communications and car manufacturing, the Chinese government allows U.S. companies to do business within its borders only if they form joint ventures with Chinese companies. Companies like Boeing, Ford and GM must sharing trade secrets, research and development information and other resources, until the Chinese take these resources for themselves and leave the U.S. firms out.
Another big advantage to China is currency manipulation, which allows China to capture a bigger portion of world trade.
China does not play by the rules and has gotten away with it for too long. Richard Franco, Houston