As Trade Slows, China Rethinks Its Growth Strategy
As Trade Slows, China Rethinks Its Growth Strategy from the NY Times and a similar article from the Christian Monitor -China favors jobs at home over freer trade
China was pursuing policies to give up lower end manufacturing through ending tax breaks and such. With the down turn, China has abandoned that policy for the moment and put back many of the tax breaks such as textiles. Of course as China focuses on this area again, countries which are into textiles such as Indonesia and Bangladesh will not be very happy. The US also had Import Quotas on Chinese Textiles which will expire Jan. 1, so this will be interesting... US has or will soon file a complaint with the WTO for unfair subsidiaries by China, there are still some areas of the US that produce garments and feel threatened by China, mostly in the South of the US.
Why is China risking angering other nations in this area? Because the leadership fears social unrest more than complaints about trade from other nations.
China was pursuing policies to give up lower end manufacturing through ending tax breaks and such. With the down turn, China has abandoned that policy for the moment and put back many of the tax breaks such as textiles. Of course as China focuses on this area again, countries which are into textiles such as Indonesia and Bangladesh will not be very happy. The US also had Import Quotas on Chinese Textiles which will expire Jan. 1, so this will be interesting... US has or will soon file a complaint with the WTO for unfair subsidiaries by China, there are still some areas of the US that produce garments and feel threatened by China, mostly in the South of the US.
Why is China risking angering other nations in this area? Because the leadership fears social unrest more than complaints about trade from other nations.
Labels: china's future
posted by Ray at
2:08 PM
2 Comments:
It good thinking that give up lower end manufacturing through ending tax breaks and such.These type of idea alwasys grow your nation repotation in the positive way.
Once you get the advance technologies in your own country and get the a lot of thinking like as grow your country..It will be always useful for your country.
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