HOW DOES CHINA CHEAT? …..Let Us Count The Ways….

It’s a forced labor economy which means it doesn’t use money like America does to pay people who work. Instead it forces people to work and accept whatever amount of cash the government decides to give the worker. The so-called cost of anything is set by the government. 

How does China do that? Easy. Work of go to jail.
If you want a house you apply to the government to get one. The government decides where you will live and give you a house if it approves one for you, otherwise no house. So there is no rent. there are no mortgages. You obey. There’s no alternative.

Foreign investors are not allowed to buy land in China. The land in China belongs to the state and the collectives but not to any individual.
So how does a Chinese person get a house? They don’t so they don’t pay rent or a mortgage. When they are paid for working they don’t have to use their money to pay for a house or a car or house paint. Government handles that. So the cost of making things cannot be calculated like it can be in America. A chain link in America includes the cost of the steel. In China the steel is made by government and simply delivered, free as it were. So China can sell to Americans at whatever price it decides to sell because the cost of the chain link is not available. the entire system is therefore rigged against the free world where everything has a cost. In China almost nothing does. 

So the American jobs of making for example steel, cars, appliances and textiles have disappeared because China simply priced their things low enough so people would buy the Chinese product. In their drive to sell things their system has no bottom line so they can undercut the selling price of anything in America.

It’s worse than cheating it’s theft, bigtime bigger than mobsters theft and it’s destroys the money based system and the economies all over the free world.

They copied the ten most popular cars and make them in China without paying for the products they copied thus depriving the ten automakers sales of their vehicles inside China. 

Authoritarian governments like China deploy a range of strategies to maintain their grip on power. Sometimes, they terrify their citizens into submission. At other times, they take a softer approach, trying to persuade the public that democratic contestation threatens stability and prosperity. A middle way strategy looks to grind people down until they are too tired to resist and give up hope for change. 

The Free Market does not control the value of Chinese money. The government does that.

When China was first opening up its economy in the 1970s and 1980s, it was in the country’s interest to keep the yuan artificially low to make its growing export industry more competitive against Asian rivals, he said. It worked until President Trump came along. 

In semiautonomous Hong Kong, China is rolling out this last playbook. But it is squeezing the territory so hard that it risks overplaying its hand and forcing the United States and other Western governments to intervene.

President Trump has a herculean job to do to change the system to make China compete for American business. China and the American Left are against him. Ignorance is against him. He’s virtually alone on this economic crucifix and it’s unpredictable how it will end.