China investors

[kadee79]

If you haven't seen it already....thought you might be interested.

behindthewall.msnbc.msn.com/_news/2011/09/19/7763968-chinas-soaring-costs-could-help-american-jobs

[ModE98]

This had been forecast a few months ago by a few "guru" types on wall street. Just how many jobs will return here or just moved to some new low labor cost country remains to be seen.
More incentive is required to encourage employers to "bring them back home". Our problem has been greedy unions and their demands. Need free and open shop.

China is a gamble for any investor.

[kadee79]

Our problem has been greedy unions and their demands. Need free and open shop.

This hasn't been our ONLY problem! It has been the also greedy corporations, the also greedy CEOs, the also greedy investors who have pushed the jobs into the lower wage paying countries without any regard for safety or human existence! And a good part of it has all been due to greedy POLITICIANS!

[ModE98]

Yes... greed runs full tilt on Wall Street, Main Streat, and in D.C. No doubt about it. China will get that way, they learn fast. Yet I suppose, China's government could enforce controls to such conduct. Get too greedy and jail time, or worse.

[Aman A.K.A. Ahamburger]

kadee this is without a doubt happening. Greed has driven economic self interest forever. Economic self interest, is, IMO, just how Friedman said it. It is the reason that we have the advancements we have. That is why it is very possible that it could be used as a strategy.

I harped about it for a year last year on MSN MT. This year a firm from Boston came out with a study that said that by 2015 the cost advantage will be erased between China and the USA. I started a thread because it has been a theory of mine for a while, and enough things have happened that I felt I could put it out there and support it with current events. I welcome you and all IBB readers to read through it, and it's off shoot and post on it if you want.

Free Enterprise. WE Win!
notmsnmoney.proboards.com/index.cgi?board=moneytalk&action=display&thread=1370

Terminal Decline?Doubtful.The American Renaissance
notmsnmoney.proboards.com/index.cgi?board=moneytalk&action=display&thread=7838

[Aman A.K.A. Ahamburger]

Some interesting points from the Free enterprise thread..

Sept 15, 2011 23:51:04 GMT -5 Aman A.K.A. Ahamburger said:

Sept 15, 2011 9:30:38 GMT -5 @bumpybumpington said:

Yes, forward. It sounds so much better than decending into a state of chaos. There are some here who may disagree though.

I'm sure that they would. It's funny, because I beileve that we are slowly evolving form a state of chaos.

I am glad that I have just waited and let a gut feeling grow. The western Revolutions were started with freedom for all. However, women didn't have the right to vote until the mid 1900's in NA Over the last 30 years we have STARTED, to show women respect in our culture. This is something that the new Islamic world is going to have to get used to with everyone watching.

Libyan woman guided NATO bombs to Gadhafi targets
www.thestarphoenix.com/news/Libyan+woman+guided+NATO+bombs+Gadhafi+targets/5389509/story.html


The bold part sounds really familiar, doesn't it? Then of course there is the fact that China has lots of houses to fill with lost of angry people that want some food!

Grasshopper and the ant sums it up. The ants are tired of the grasshopper stealing and they want to stay warm and fed for the winter..

China's Overhang of Unsold Property Poses "Very Real" Problem
www.forbes.com/sites/russellflannery/2011/09/13/chinas-overhang-of-unsold-property-poses-very-real-problem/?feed=rss_asia

Of couse this also means they will need things to push their new consumer driven market. Since the Chinese public love American products there will be lots of oppertunities. Like this.

Owens Corning Opening its New China Composites Center in Shanghai, China
www.istockanalyst.com/business/news/5399814/owens-corning-opening-its-new-china-composites-center-in-shanghai-china

"Our new China Composites Center in Shanghai demonstrates our commitment to provide customers locally with customized solutions,"

The bold part points out the part about servicing our own economies that I have been harping about.

Then there is this.

Canada's Scotia buys stake in Bank of Guangzhou
news.yahoo.com/canadas-scotia-buys-stake-bank-guangzhou-085721375.html

And this...







They are so desperate for American Products in China that they opened fake apple stores!!

[Aman A.K.A. Ahamburger]

Sept 17, 2011 23:23:06 GMT -5 Aman A.K.A. Ahamburger said:

Well how about this? A few post back we talked about Welch and Jobs vman. Here is Welch saying that China needs to create 10,000 apples. That in the next three to five years, they have to create a major global brand, or they will lose their competitiveness.. He thinks they will do it. I have to disagree with Mr. Welch.

Warren Buffet knows all about Chinese brands, such as; one of the only car companies that isn't making it in China, a Chinese brand. How about the pictures above? There are of course 500 Taco bells opening a year in China. GE is opening a global headquarters there, Disney is opening a theme park, and they had to push all the opening of US films to a different weekend just so that their commie film would be no 1.

Not to mention that apparently USA made chop sticks are a hot item in China right now. Along with all the other big named high end western fashions/art/food.

IN the 1870's when the USA rose to power, it was on American food, energy, and innovation, and the civil war had happened. The Chinese rise to power will be on the backs of everyone else. They need food, energy and water, and because they have to worry about a civil war starting if they don't.

China Must Create ‘10,000 Apples,’ Welch Says
www.bloomberg.com/news/2011-09-07/china-won-t-lose-competitiveness-for-3-5-years-welch-says.html


Then if we go all the way back to the first thread of this page we see how the strategy is working out. How the rise of China not only benefits big global brands, as pointed out above in this post, it's also going to benefit WE the little people by raising the standard of living for everyone. Thanks JC

Jan 10, 2011 20:41:25 GMT -5 Aman A.K.A. Ahamburger said:

When has a military strategy been to build up other nations so that they are equal to you? Something had to be done after the forties because the war wasn't over, just turned cold. I know that we as humans can walk better with two legs. Why can't the world?? Don't fool yourself, or listen to the media that is always looking for the decline of America. It is possible that short term loss in jobs will lead to long term gain in prosperity for everyone. We are not talking about sections of the planet this is the whole world that is involved.

These are current market events that tie this all in together!!!

Just like the quote says, current market events that tie this all in together!

Cambodia eyes Chinese investment to boost economy
news.xinhuanet.com/english2010/china/2011-09/16/c_131142791.htm

[Aman A.K.A. Ahamburger]

There is also this, from the, Terminal Decline?Doubtful.The American Renaissance. thread

Sept 17, 2011 1:02:35 GMT -5 Aman A.K.A. Ahamburger said:

Opportunity where none see it.

The Future of Manufacturing
One Billionaire Bets Big on Next Global Manufacturing Hub
www.wealthdaily.com/articles/the-future-of-manufacturing/3232

The World’s Next Manufacturing Hot Spot

After regaling those of us who are still building our fortunes on the intricate details of why a Bugatti Veyron ($2.4 million) is a far better car than the McLaren F1 ($970,000), he revealed the one region he sees big opportunity in... the one he is cutting a multi-million-dollar check to take part in.
This particular investor saw an opportunity most of the financial world would have (or already has) written off: Fort Payne, Alabama.

The sleepy southern town of Fort Payne was once known as "the sock capital of the world." A century ago, it had a population of about 12,000. More than two-thirds of its residents worked in the hosiery industry, and the town produced more than half the socks in the country. If you wore socks, chances are they were made in Fort Payne.

Today, it’s a much different story. Total hosiery industry workers have fallen from a peak of 8,000 to a mere 600. Nearly 100 sock factories sit idle.
But despite the bleak outlook for a factory town with a dwindling number of factories, one billionaire sees opportunity here.

Better than China

Fort Payne offers a few advantages China and other countries do not.
The major one is location. Nearly eight million autos were produced in the United States last year. A steadily increasing portion of them are made in the non-unionized South; Toyota, Mercedes, BMW, and others have built a number of factories there in the last few years.
The other advantage is quality. This is critical. China just can’t compete with Western nations when it comes to quality.
The way it was explained to me by someone with far more experience in international manufacturing is this: Chinese factories will always try to cut every corner they can. In the case of plastic vehicle parts, they will cut back on the costly resins, replace them with cheaper filler, and a much larger percentage will be 5 or 10 millimeters too small or too large and, therefore, completely unusable.
And this instance is just part of a much larger trend.

This is very interesting. Some real facts on the state of solar manufacturing in the US, hmm..

Pure Fantasy On Green Manufacturing, Solar Jobs and The Mainstream Media
www.renewableenergyworld.com/rea/news/article/2011/09/pure-fantasy-on-green-manufacturing-solar-jobs-and-the-mainstream-media


Some more interesting data.

As It Stands: There's hope for the 'Made in the USA' label
www.times-standard.com/davestancliff/ci_18872070


Manufacturing Renaissance In America?<---- There's that word!!
www.istockanalyst.com/finance/story/5401494/manufacturing-renaissance-in-america

Goodyear Tire Comeback Story: U.S. Manufacturing Can Be Competiive With A Two-Tier Wage System
www.dailymarkets.com/economy/2011/09/16/goodyear-tire-comeback-story-u-s-manufacturing-can-be-competiive-with-a-two-tier-wage-system/

Another Company Moves Production Back To U.S.
www.dailymarkets.com/economy/2011/08/31/another-company-moves-production-back-to-u-s/

On Bloomberg TV, CEO Lonnie Kane of U.S.-based women’s clothing company Karen Kane talks about the company’s decision to reduce the amount of clothing it produces in China from 50% to 20%, and increase its U.S. manufacturing from 50% to 80%.

The Case Against Shifting Production To China; Hidden Costs And Growing Risks Make U.S. Attractive For Manufacturing
www.manufacturingnews.com/news/11/0831/reshoring.html

[ModE98]

Nice info ... thanks! It is encouraging for the future of US manufacturing & employment over the next few years. Maybe "what goes around, comes around".....

[Aman A.K.A. Ahamburger]

NP. Without a doubt ModE.. The Golden Rule.. Since 1945 the USA has shared it's freedom democracy and equality for ALL, with business. No other world super power has done this.

[Aman A.K.A. Ahamburger]

Just posted this on the Free Enterprise thread.. Don't know if you read over there, but this is how it has been going ModE. Either someone is writing stories for me in the media, or I am onto something lol.....

Sept 24, 2011 23:28:03 GMT -5 Aman A.K.A. Ahamburger said:

Just more evidence that love, not war, makes more and all the big boys agree!

China's Economic Expansionism
www.forbes.com/sites/jackperkowski/2011/09/23/chinas-economic-expansionism/?feed=rss_asia

Throughout history, generals have tended to prepare for the next war by fighting the last one, failing to take into account the fact that circumstances seldom remain constant.

In this vein, a top U.S. defense official recently warned that China’s military buildup is “potentially destabilizing” in the Pacific. Michael Schiffer, the deputy assistant secretary of defense for East Asia, made this comment at a news briefing about a report, titled “Military and Security Developments Involving the People’s Republic of China 2011,” that is submitted every year to Congress. While Pentagon officials may be pre-occupied with China’s military expansion, I’ve never regarded China as a military threat, particularly when the country has another, peaceful way to extend its influence throughout the world — by using its cash!

In a report prepared by the Financial Times, the newspaper found that two Chinese state-controlled banks have lent more to developing countries than the World Bank. According to the report, the China Development Bank (CDB) and the China Export Import Bank made loans totaling $110 billion to governments and companies in developing countries in 2009 and 2010. During the same period, the World Bank issued loans of just over $100 billion.

The CDB and the China Export Import Bank are “policy banks” that have a mandate to use China’s financial resources to further the country’s national interest. One of CDB’s specific tasks is use its resources to alleviate bottlenecks in the supply of raw materials for the Chinese economy. In the aftermath of the global economic crisis, Chinese banks made loans to producers of raw materials when it was difficult for them to attract financing from other sources. In addition to securing much needed raw materials, the CDB also uses loans to open up foreign markets for Chinese companies.

Just as the global financial crisis provided China with an opportunity to extend its influence throughout emerging markets, the European economic crisis is now providing China with another such opportunity — this time in developed markets. Speaking at the opening of the World Economic Forum in Dalian, China last week, Premier Wen Jiabao called on European countries to put their “own houses in order” before asking China for a bail-out. Mr. Wen also caused a bit of a stir by publicly linking Chinese investments with long-standing political demands.

Mr. Wen made clear that China was not about to purchase sovereign debt without seeing anything in return. He said Europe needed to take “bold steps” in order to receive Chinese help, the first of which is to formally grant China full “market economy” status (MES). Many regarded Premier Wen’s remarks as a message that there could be a trade-off between China offering help and the EU granting China MES.

Recent months have seen an increase in European Union (EU) trade remedy cases targeting China. The European debt crisis may lead to increased trade friction and hurt China’s exports, Shen Danyang, Ministry of Commerce spokesman, said on Tuesday. In mid-September, the EU imposed anti-dumping duties ranging from 26.3 percent to 69.7 percent on imports of ceramic tiles from China. “As the debt crisis worsens … trade friction will grow,” Shen told a news conference.

Shen also said that China is disappointed that it has not been recognized as a market economy under world trade rules by the EU, despite the rapid economic transformation that has occurred in the country. Recognizing China as a market economy has long been a key demand from Beijing and would allow Chinese companies to avoid or mitigate many trade disputes. European officials have argued that China does not meet the criteria of a market economy, and strong opposition from some countries make it unlikely that the EU will grant China this status soon, that is, of course, unless they want to receive China’s financial support.

In June 2010, China de-pegged the renminbi from the U.S. dollar. At that time, the euro was trading at 1.2 to the greenback. Since then, despite the well publicized, looming financial crisis in Europe, the euro has appreciated by more than 13 percent against the dollar. Apart from the loose money policy being followed by the Federal Reserve System, there can only be one reason for this appreciation in the face of such negative news: China. The EU represents a market for Chinese goods that is approximately the same size as that of the United States, and China has a strong vested interest in an economically healthy EU. Look for China to play an increasingly greater role in solving the European financial crisis in the months ahead.

The bottom bold part is something I agree with 110%. It's the reason that China will NEVER attack the west, because they NEED us to save them from all out collapse!

So ya, China will use all that money to build up all the others. This will leave no where for cheap labour to exists eventually.

[Aman A.K.A. Ahamburger]

Not sure if everyone over here had seen this or not..

Sept 26, 2011 23:35:36 GMT -5 Aman A.K.A. Ahamburger said:

I have posted this story before, but it's nice to see it's still happening! Since there is more consumers coming on line it's only going to grow because there just isn't enough stuff for the Asian economies to go protectionist like economies of the world did in the 1930's

China's hunger for chopsticks gives Ga. town a lift
www.cbsnews.com/stories/2011/09/26/eveningnews/main20111856.shtml

"There's lessons in this in that small town America could be a manufacturing center for a lot of small to mid-size companies," Hughes said. "Governments are easier to deal with. Regulations are a whole lot less. It's just a better environment to work in."

New machinery from South Korea will allow the company to soon produce 10 million chopsticks a day. By March, the company hopes to hire 70 more workers. They may not be the only ones hiring. Asian companies have contacted local officials about possibly opening more factories around town.