China has consistently used the value added tax as an instrument of industrial policy, applying the VAT selectively to penalize imports and to encourage exports. The VAT, which has been adopted by 140 countries, including most industrialized countries other than the United States, is applied to manufactured goods at each
stage of production. China levies a 17 percent VAT on the value of most goods. However, this 17 percent rate is rebated selectively on exports and applied to all imports.
Ugly stuff and why have we stood around and let this happen?
Export-led growth policies pursued by China and other industrializing nations have inevitably led to excess capacity in many products, notably steel and automobiles, which has contributed to declining manufacturing jobs and production in...
many market-oriented countries, including the United States. Problems arise for China’s trading partners as China exports its excess capacity at prices that the rest of the world cannot match. For example, in 2008, China accounted for 38 percent of the world’s crude steel production (about 500 million tons), compared to only 7 percent for the United States, and China’s excess capacity of steel is
greater then Japan’s entire yearly output.352 Such exports also exacerbate the global economic downturn, as China essentially exports unemployment
This is a long and wonky report but essentially says what the USA needs to do to turn around our employment picture:
Quit letting China steal our lunch!
The Report
And then there's this:
China’s Cyber Activities that Target the United States, and the Resulting Impacts on U.S. National Security.
• The Commission recommends that Congress assess the effectiveness of and resourcing for law enforcement, defense, and intelligence community initiatives that aim to develop effective and reliable attribution techniques for computer exploitation and
computer attacks.
• The Commission recommends that Congress urge the administration to develop measures to deter malicious Chinese cyber activity directed at critical U.S. infrastructure and U.S. government information systems
Geez! There's report after report at this US Government web site that both scares and angers me. Pick a subject and read for yourself. We don't need to have a jobs summit. We need the gumption to do the obvious. Quit sending our manufacturing strength and jobs to China.
Dammit!
Steve
And now here's more scary topics posted at the links I gave you:
Among the topics addressed in the 367-page Report are:
China’s increasingly aggressive espionage efforts to obtain U.S. secrets and technology for the benefit of China’s military and its economy.
China’s stepped-up cyber espionage and cyber warfare capabilities that constitute a growing threat to U.S. computer networks.
China’s extensive use of foreign propaganda and China’s efforts to influence public opinion and policymaking in the United States.
China’s detailed industrial policy designed to attract foreign investment and production and to create “national champions” to compete on a global scale.
China’s use of subsidies and other trade-distorting measures in violation of its international commitments.
China’s role in the creation of the economic imbalances that that helped produce the global financial crisis.
The expansion and modernization of the Chinese navy and its effects on U.S. access to the waters around China and Taiwan and the likelihood of a maritime arms race.
The use of new and more sophisticated methods by Chinese authorities to control the Chinese news media and the Internet.
China’s activities in Afghanistan, Pakistan, and Central Asia.
Mainland China’s increasing influence in Taiwan and Hong Kong.
The effect of China’s policies on the economy of the upstate New York region.
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