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March 19, 2010

 

Banning China is not the Answer

I suppose one of the best things about democracy is allowing debate and the free exchange of information and ideas. But democracy can also lead politicians and legislative bodies to make the most idiotic foot-in-mouth statements that would never see the time of day in some parts of the world. Consider how one town in Florida is attempting to ban its local municipal offices from purchasing Chinese goods (hat-tip: Tony Poshek). According to an article introduced by the mayor and his protectionist cronies, "The ordinance would prevent the city from buying any items costing more than $50 that are manufactured or assembled in China or that contain more than 50 percent components from China. Exceptions are for emergency purchases, if the item is not available otherwise or if the cost is more than 150 percent higher."

What's the Mayor's rationale for introducing this bill, you ask? "We are losing jobs left and right to them," he was quoted as saying. For me, the scary thing about statements like this is that they reflect an anti-trade sentiment that is rising across the United States. Indeed, for myopic protectionists such as the Mayor in question, it really is an "us" versus "them" fight. Personally, given the rise of statements like this, I don't think that I'm being outlandish in my prediction that after next year's election, we'll see a more isolationist policy stance on trade -- and China trade in particular.

- Jason Busch

Comments
Free trade is certainly the best approach to prosperity for all -- but don't you think it is more accurate to describe China's approach as mercantilism? Mercantilism, as we all know, is focused on the premise of leaving nothing on the table for the other side. In other words, we're bringing the proverbial knife to the gun fight if we apply free trade principles to our interactions with China. Safe to say that the mayor in that Florida town is not alone in having those sentiments -- witness WalMart's problems, and it's nickname ChinaMart.
# Posted By Thomas Kase | 10/25/07 8:04 AM
I think the mercantilism comment is spot on. Though I personally believe the Mayor's policy is a bit silly (banning Chinese products is overkill) However, think of how many tax dollars we would save if every mayor in every city banned Chinese made products/components! Just think of all of those office products savings. I'm all for it!
# Posted By Lisa Reisman | 10/25/07 1:04 PM
Jason - I bet if you went to his house, he would be (1) Stocked with Made in China goods and (2) He wouldn't even know half of them were made in China.

What's next? People are going to buy 100 toasters from Wal-mart and steam roll them like they did rap music?
# Posted By AllRoads | 10/25/07 5:37 PM
I assume that the above comment regarding "going to someone's house" refers to the mayor in Florida?

Like Lisa, I find it futile for a city to try to ban Chinese products -- but one certainly has to raise the question of whether or not trade policy actions have to be taken against the mainland Chinese, on a national level. The way I read the WTO intentions, China makes a mockery out of their membership in this organization - the exchange-rate-freeze especially is a flagrant violation IMNSHO.

Could anyone make the case for me as to why red China deserves to be treated on parity with European and other, less-totalitarian,
countries?

Finally, on a personal purchasing note, with two single-digit-age children it is hard to dodge the "made-in-China" issue -- where can you find non-Chinese toys? -- but other than in the toy area I try as hard as I can to avoid purchasing anything from that country.
# Posted By Thomas Kase | 10/27/07 5:02 AM
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