Tariff, Tariff, Tariff

October 7, 2006 at 12:28 am (China, Economics)

European Countries agreed to impose a two-year long 16.5 percent tariff on leather shoes from China. Facing with tariffs in Europe today and tariffs in the US tomorrow, we have to admit that the world is still far away from an integrated economy, not to mention being harmonious politically. There are always some countries crying for barriers on imports from China only because of China’s low-cost manufacture. At the same time those countries covet China’s big market and exhaust all they can do to reap a bigger bite.

Low-cost manufacture is almost the only competitive advantage China is on hand. It’s not that China wants to be a world manufacture center, it’s the division and the development of the world economy that makes China has to. In fact, China is struggling to upgrade its industry, and at the same time to raise salaries for manufacture workers. While doing so, the rest of the world is then pointing its figures on China for “exporting inflations”.

So what China can do? Keep low salaries it’s “dumping”, raise salaries it’s “inflation export”. I guess the only thing China can do to satisfy the world is making nothing and buying anything from others.

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