As CEOs descend to pay tribute to China in the White House and all Hail the Chief at a Celebrity filled state dinner, the American people are once again left out in the cold. Literally, Barack Obama denies China has captured American manufacturing and our jobs along with it.
Obama and Hu greeted the CEOs in a room in the Eisenhower Executive Office Building (the mammoth building next to the White House that looks like a Victorian-era hotel) and made a few remarks before leaving for their presser.
“I think our goal here today was to make sure that we break out of the old stereotypes that somehow China is simply taking manufacturing jobs and taking advantage of low wages,” thereby straining the U.S. employment base, Obama said. “The relationship is much more complex than that, and it has much more potential than that.”
“I also have a message to American entrepreneurs,” Hu added. “That is, we welcome you as companies to China….We will, as always, try to provide a transparent, just, fair, highly efficient investment climate to U.S. companies and other foreign companies.”
Nice huh? China wants what is left of American innovators. Obama rolls out the red carpet to have a meet and greet.
While announcements of $45 billion in exports to China are a nice sound byte, the reality is these are deals with companies such as G.E. & Boeing and Caterpillar, who already offshore outsource to China. Now it seems they are giving away critical advanced technology:
The lure of vast state subsidies for Chinese industry is too tempting for US companies to resist. In exchange for these investments and joint ventures, US firms are compelled to give up sophisticated technology that the Chinese have yet to develop for themselves. One side is playing a short-term gain, while the other is looking for a long-term advantage.
General Electric Co. (NYSE: GE), Alcoa, Inc. (NYSE: AA), Duke Energy Corp. (NYSE: DUK), American Electric Power Co. (NYSE: AEP), and Boeing Co. (NYSE: BA) all have new agreements with China. Alcoa, for example, said it will partner with Chinese companies on $7.5 billion in clean energy projects to reduce the pollution associated with aluminum smelting. Making aluminum requires enormous amounts of electricity, most of which China generates using coal. The Chinese want to work on wind- and solar-energy projects that will reduce the demand for coal in smelting.
GE will collaborate on combined heat and power gas turbines and coal gasification plants that are expected to generate some $650 million in revenues over the next five years or so. GE wil also sell some locomotives to China and create a joint venture to help develop a high-speed rail system in China.
By far the most important deal is a joint venture to supply avionics systems for China’s planned C919 passenger plane, a contract that could be worth up to $2 billion.
That avionics deal makes available technology now used by Boeing in its most advanced passenger planes available to a Chinese company that is expected to become a Boeing competitor in the middle of the current decade. There is also a concern that GE’s avionics technology could be use in China’s military aircraft.
JVs, or Joint Ventures means jobs in China, manufacturing in China and worse of all, agreements to share know-how, advanced technology. In other words, to make some short term profits and get to that Chinese mythical consumer market, U.S. multinationals will sell their souls, their country, their workers and their mother. G.E. just did and they are not the first.
The good news is the mainstream Financial Press is really starting to get they literally are destroying the U.S. economy with these sorts of moves.
General Electric (GE) plans to sell its aircraft electronics to Chinese companies, and if you don't have a problem with that, maybe you should. After all, China just flight-tested a prototype stealth fighter (pictured), it continues to build up its military -- and we can only hope it's not planning to expand its territory in ways that threaten the U.S.
But if China does decide to get aggressive with the U.S., GE will have provided it with the aircraft technology it will be using.
According to The New York Times, GE is signing a deal to sell avionics technology -- electronics that control an aircraft's basic in-flight operations -- to Commercial Aircraft Corp. of China (CACC), which aspires to build commercial and military aircraft. GE will do this through a joint venture with a Chinese company, Aviation Industry Corp. of China (Avic). Avic makes avionics for CACC and for China's military -- including its stealth fighter.
Sure, GE is based in the U.S., but that doesn't mean its shareholders expect it to be loyal to U.S. interests. Still, selling technology it developed for U.S. companies like Boeing (BA) to Boeing's Chinese competitors -- which are trying to build a competing aircraft company -- may be going too far.
This Washington Post piece says it all:
The right response to these challenges would be for the president this week to laud China for the success of its economic policies and announce that the administration will begin forthwith to apply each and every one of them to Chinese exports into the United States. Subsidies and directed credit for local companies, buy-American provisions for government agencies and government contractors, currency manipulation, the rules on "conditional market access" and "indigenous innovation" - surely China could hardly complain if we were to pay them the highest compliment by embracing their economic model.
It's no accident that Obama's three state dinners are for most notorious offshore outsourcing destinations, Mexico, India & China. Remember we heard the same bold face job lies, gift wrapped outsourcing deals, during India's State Dinner. What was that official United States unemployment rate again? Shhh! We're being eaten.
Comments
Anti-America Washington Brotherhood
I totally agree with the above article. For many decades now, the anti-America Washington Brotherhood has sold us out to foreign interests. Through unfair, unjust, and one-sided foreign trade agreements and policies, we've lost entire industries to cheap foreign labor.
"Global Economy" basically means "equalization to the lowest level", and we're not too far from that bottom. Due to anti-America agreements and policies, we've become import and energy dependent. And, as a result, we support foreign economies at the expense of our own.
Our living standards do not allow us to complete with cheap foreign labor, working in sweat shops which employ child labor. We can not be self-supporting working for $5.00 a day.
The obvious solution to our many economic woes, is to put America back to work, producing what America uses and consumes. This is accomplished by demanding fair, equal, and balanced foreign trade.
We have a rapidly growing population, and one that is very diverse as to education and skill levels. We must provide living wage opportunities that cover all education and skill levels. To accomplish this, we must produce goods and services via our own workforce, and wean ourselves from foreign made imports.
If the current trend continues, most indicators point to the U.S. becoming a third world nation in the not too distant future. We can not maintain our current socioeconomic status and standard, while encouraging a workforce to survive by living off of government assistance programs and unemployment checks.
In order to generate a positive cash flow within our own economy, we must first end our dependency on foreign imports. At present, our import and energy dependency allows our cash to flow more ourside of our borders than within them. This has to change if we're to provide living wage opportunities which cover all education and skill levels.
The benefits of a self-sustaining economy, through adequate employment opportunities, are many. Among them are sufficient tax revenue, decreases in poverty and homelessness, and consumer spendable income to support economic growth.
In summary, the cure-all is a pro-America government seated in Washington. We must rid Washington of the anti-America self-serving power hungry Washington Brotherhood, and elect those that see and understand the root causes for our devastating and shameful economic decline.
Ratigan Fed Creates Jobs for Chinese, not Americans
Some pretty good intel on how banks refuse to lend to U.S. business for U.S. jobs increase lend to offshore outsource to China....
Ratigan fed creates jobs for China.
This goes along with the refusal from bail outs to Stimulus to require tax cuts, grants, funds, lending be tied to U.S. workers.
China is the "ROI" hype herd behavior of "investors" and banks, similar to other "chosen" emerging economies, such as Brazil, India and so on.
Stimulus For Jobs
Lets look at what creates jobs, and what real stimulus is needed. First, jobs don't just fall from the sky, as the folks in Washington have suggested. Secondly, exercising simple logic and common sense here, we know that it's demand for goods and services that actually creates jobs. Now, if company XYZ is given tax breaks, does that automatically mean more demand for its' product? The answer is, of course not. So, the question is, "how can extra money on company XYZ's books, equate to more demand"? Another question worth consideration is, "are companies turning away business because they don't have the staff to satisfy the demand for their product or service?" Are you kidding me here? With businesses fighting for market share, and in an economic battle to survive during these harsh economic times, they're begging for more customers and orders.
Again, it's not money, or the lack of it, that's keeping employers from hiring, it's a lack of demand for their products and services.
So, how can we actually encourage hiring? The best stimulus for job growth and job stability, is Demand. We can generate demand by eliminating our import and energy dependency. How do we accomplish this? We can end our dependency on foreign imports through fair, equal, and balanced foreign trade. At present, our unfair and unjust one-sided foreign trade agreements and policies are American "Job Killers".
All of the talk coming out of Washington concerning stimulus money for small business America, to encourage and create jobs, is nothing more than political rhetoric that basically holds no water. In reality, Washington doesn't want to address the root causes for the lack of adequate living wage jobs. In fact, Washington encourages job out-sourcing, companies to relocate outside of our borders, and fully supports "job killers" such as NAFTA.
Bank loans aren't the answer to job creation, and neither are tax breaks and tax cuts. Real stimulus is DEMAND for products and services.
Because you can do wrong, and get away with it, doesn't make it right
Sonny is RIGHT!
Stimulus in the form of credit, issued prudently by a sovereign authority, to fund competitive economic endeavors which add real world value to real world economies, CAN sustain the working classes.
Because the American worker will not toil endlessly at minimum wage, with no benefits, no union representation, no retirement benefits, etc... you have one million workers at FOXCONN assembling I-phone, I-pads, I-pods and other gadgets used all over the world. And Apple uses this cheap Chinese labor not only to increase profits, but so that prices can be competitive enough for the product to actually sell.
That is normal capitalism, and is certainly BETTER than stimulus money printing used by the FED to bail-out the banker's rigged bets and fraudulent claims of virtual wealth.
But Sonny is right. IF WE COULD first see our way clear to print money for the RIGHT REASONS, to support real world jobs for a change, that add real world value to the global economy, we'd STILL need workforce innovation to make the American worker competitive in the global workforce marketplace.
Take the Google workforce innovation model. They have a million Googlenerds working for them for FREE all over the world, just to get a crack at improving free Google application code so that the brainiest GoogleGeek out of a million gets (1) job offer of a nice office and big starting salary in Palo Alto.
Or how about EBAY? They leverage the buying and selling activity of millions of "members" for a small fee, but no "worker" produces anything and all of the product sold comes with no production overhead cost.
So we have brilliant workforce innovation models over here which work because they don't employ American workers at a living wage (in ratio to productive output). Now all we have to do is either use that brilliance to fund good paying jobs that CAN attract and retain American workers and which DO produce high value products and services in high global demand.
If we can't innovate our way into globally competitive workforce models that employ American workers to produce that demand offering, we are sunk.
But if we can, and if those ideas are on the table, the smart money should fund (or sovereign banks should extend credit to) THOSE kinds of ventures -- not continue bailing out the false promises, fraudulent claims and criminal demands of the global banking dictatorship.
http://letthemfail.us
-WM
http://letthemfail.us
Obama
Well, if this doesn't send a message to the American people then I don't know what will. Obama simply proved by these statements and by supporting Hu's statements that he is all for more industry leaving this country. Of course China's president welcomes American businesses and industries. Have they ever not?
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almost identical to India
I link to the India overview, read that and notice we have almost identical comments trying to claim India isn't stealing American jobs.
Enough
Tell those town, state and fed officials. Stop speaking Chinese and kissing Chinese's ass. Enough! Chinese government do not respect Chinese people in China. They are not capable to respect our Americans and our country.