I can think of several other ways out. One of them involves letting China's carriers visit more countries.
Chinese Economics Thread
- Thread starter Norfolk
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Well, not even the US can force countries to eliminate tariff on US products
Okay, I am not going to tolerate this stupid over capacity argument on this thread. Over capacity is an excuse used to put tariffs on overly competitive products and nothing more.
Companies produce only what they can sell profitably. Nobody produces x and then say oh I produced too much so I need to export more now. They produce more because they can make more money from exports. Anyone following Chinese company pricing strategy can see that.
besides, this is already being discussed in BRiCS thread
Companies produce only what they can sell profitably. Nobody produces x and then say oh I produced too much so I need to export more now. They produce more because they can make more money from exports. Anyone following Chinese company pricing strategy can see that.
besides, this is already being discussed in BRiCS thread
Companies produce products based on anticipation（how much they can sell at certain market），when actual sales volume fall short from anticipated volume ，they got a problem. These unsold products will go to inventory but not for long，later what they usually do is to put these inventories on market at a far below costs price，just to recover some losses.
And then they will cut production and won’t have so much inventory. Nobody produces certain volume and then say oh because we can’t sell it all in our existing market, we will now enter this new market.
what they do is anticipate how much demand there is for overall and produce accordingly. And they enter a new market with products when they are ready to do so.
all this over capacity nonsense is invented by the pseudo economists in Washington DC who thinks China should only be producing clothing and ceramics that the Indonesians are now complaining about.
I'll say one last piece before letting this go.
1) The larger the consumption total of an economy, the larger the industrial production that can be supported.
2) The larger the production, the greater the economy of scale which makes prices competitive.
The sales of cell phones in China is around 1 billion. The US is around a quarter of that.
Chinese companies can survive on the home market that is four times that of the US but the economy of scale created by that huge home market inevitably makes their products much less expensive than those in the US or any other market with a much smaller market. So they take this advantage and export to new markets.
If the home consumption market were low as these Western idiots are telling you then Chinese firms wouldn't be able to reach the economy of scale to make these products competitive in the first place.
Just remember this, EVERYTHING comes from the massive size of China's consumption level. Whether it is smartphones, cars, TVs or semiconductors, it is China consumers buying in multiples of what even the US can afford who are creating the ability for China Inc. to leverage economy of scale for everything under the sun.
There is no such thing as "overcapacity" in business. You build as much as you think you can sell. It is that simple.
Yes, there is no excess capacity. However, there is an inability to compete.
You tend to repeat a lot of western talking points. It's been mentioned multiple times that overcapacity is a US state department Buzz word and had nothing to do with reality.
I agree with @tphuang . China should have symbolically or 100% tariff on something American just to prove a point like what they are doing with the Europeans.
However while this will protect Indonesia's domestic industry, Indonesia producers will likely not be able to export competitively and it will make their downstream products less competitive, since this is a broad tariff.
China needs to build a few more of these ships.