Friday, July 29, 2005

BOING BOING BOEING

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By Elaine Meinel Supkis

Whew. After wading through the Black Hat story--seriously, it got creepier by the hour!--it is a relief to go back to explaining China. This is byzantinian economics that are easy to track and explain! For now, that is.

From Xinhuanet:
The Bush administration is going to impose stricter restrictions on exporting American technologies and products to China, as Washington is getting increasingly nervous about non-stop Chinese rises on the world stage.

The U.S. Commerce Department is reportedly preparing to issue rules by the end of 2005, that would impose stricter limits on exports of American civilian technology that, allegedly, also has military uses, like aircraft parts, computer chips and machine tools, said Peter Lichtenbaum, the department's acting under secretary for industry and security, the International Herald Tribune reported.

"They're heading for a clash," the Bloomberg News quoted US trade expert Edmund Rice as saying.
I wonder if the Chinese have the Holy Grail code. It wouldn't surprise me. If I can find stuff online, so can they, I am assuming. What do you do if a rival empire is rising? Restrict trade? Um. Hasn't worked in the past. Heading for a crash? Haha. Indeed. Solution?

Let's past another $20 billion in tax cuts for our energy industry which is rolling in dough right now! Then we can go to the Chinese for more loans and then tell them they can't buy our technology. Oh, and we will demand the Europeans don't sell them technology, either. This will hamstring them!

Gads. Kill Hu and Wen by making them laugh to death.
"U.S. industry is integrating with China, but the Bush administration is taking steps that are taking U.S. policy in a virtually opposite direction," said Rice, the president of the US Coalition for Employment Through Exports, which represents companies like Boeing.
Har. Our good corporate entities are doing a great job for the Chinese. Boeing builds stuff for our military and in turn, will do the same for China! Anything for a yuan!
Currently, only 1.5 percent of the $35 billion in U.S. exports to China requires a government export license, the department says. Depending on how the new rules are structured, U.S. industry lobbyists say, the proportion could grow to more than 10 percent.
The Chinese invented not only paper money but red tape. Their concept of Heaven is a place run by bureaucrats who have to be bribed! How very logical. We have a problem. We are restricting not only exports but them purchasing stuff here like Unacol. So how are we planning to bring trade back into some balance?
Boeing, which this year won orders from Chinese airlines for 60 of its new 787 Dreamliner jets, said in June that it would use about $600 million in parts from Chinese companies.

The Bush Administration is still debating the details of the new regulations, and an intense lobbying campaign is being waged to influence the outcome, Bloomberg report
The ultimate plan is to get Boeing into a large enough contract and then wait a while and then make a nifty deal: they transfer the factories wholesale to China and get the planes cheap and can keep the profits of this contract while it is finished by Chinese workers. This has to be introduced very slyly, at least, they hope.

I have chatted about this plan before. It is very obvious now. Note this article:
US$6b deal for 50 Boeing jets in sight......Airbus hopes to clock up some 200 firm orders by the end of the year for its A350 whilst it is also pushing hard its A380 super-jumbo, of which it has sold five to China Southern.

Boeing has so far registered 261 orders for its 787, while Airbus currently only has 10 firm orders for the A350, which is expected to be in service by 2010.

To cater to domestic needs, China is also keen to build its own short-haul aircraft and so wean itself off dependence on Airbus and Boeing, the world's top major commercial aeroplane builders.

China is trying to develop a market for domestically built 70-to-90-seat regional jets.
The hint is there! Whoa. They finally said it! More: the plan isn't to confine themselves to their own domestic market. No way in hell. Imagine if they have clones of our jets only they cost one third to build? Hmm? Guess what.

Our trade deficit is going to really stink.

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