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Steel dispute escalates, the US will return to manufacturing
How to increase employment as much as possible and get more people's minds is estimated to be the most unresolved issue in President Obama's mind. Now, once again in the US election year, "employment" has become the most mentioned word in his State of the Union address. one. How can we increase employment? Obama pinned his hopes on American manufacturing. In 2008, Obama proposed that "the battle for the US manufacturing industry is now fighting for the future of the United States." On January 24, 2012, Obama once again blew the "return to manufacturing" horn in the State of the Union address. . This is not good news for China, which is dominated by low-end manufacturing exports. From the recent years, China’s textile, steel, tires and even the photovoltaic industry have encountered endless “anti-dumping and countervailing†investigations. Judging from the United States, the United States has done a lot of work for its "return to manufacturing." Trade barriers escalate "Because we have stopped the dumping of Chinese tires, more than a thousand Americans have been able to work today." "The number of cases in which we filed trade lawsuits against China is nearly twice that of the previous government, and we have seen The results, in the 2012 State of the Union speech, Obama used this example to prove how much benefit the American return to manufacturing can bring to the employment of the American people. It is the Chinese tire companies that have encountered anti-dumping. On January 19, 2012, the US Department of Commerce decided to initiate anti-dumping and countervailing investigations on application-grade wind tower products originating in China and Vietnam. On December 2, 2011, the US International Trade Commission initially determined that the Chinese imports of crystalline silicon photovoltaic cells and component products sold in the United States caused substantial industrial damage to the United States. In October 2011, the United States made an anti-dumping final ruling on the export of multi-layer parquet in China, levying a countervailing duty of 0 to 26.73% and an anti-dumping duty of 0 to 58.84%. In the past year alone, the US double-reverse investigation or ruling against China has spread to many industries such as steel, aluminum, citric acid and citrate. On the day of the State of the Union address, Obama announced the creation of a Trade Enforcement Unit to investigate unfair trade practices in countries such as China and to strengthen inspections to prevent counterfeit or unsafe goods from entering the United States across borders. Do not allow foreign companies to take advantage of US manufacturers in terms of financing or entering new markets such as Russia. "The United States now mainly blocks foreign products by setting up trade barriers to help domestic manufacturers produce more products, thereby increasing employment." Li Yu, a lawyer at the US law firm, told the "First Financial Daily" reporter. One of the measures is to increase the budget for trade relief in the case of a reduction in the total budget, and to establish a trade coordination agency across ministries, and only the Ministry of Commerce and the International Trade Commission are responsible for this. Institutions to increase investigations in trade relief. "Obama blew the assembly of trade protectionism, and Sino-US trade frictions will intensify," Zhou Shizhen, a senior researcher at the China-US Relations Research Center at Tsinghua University, told reporters that "Obama mentioned that the United States is focusing on developing medium and high-end manufacturing." China is also transforming in this direction, so the trade conflict between China and the United States will intensify in the future.†In recent years, the United States has indeed increased its suppression of Chinese products in high-end manufacturing industries such as new energy, photovoltaics and wind power. In this regard, Zhou Shizhen suggested that China should continue to increase export diversification and expand its share of exports to emerging markets. At present, China's exports to European and American markets have fallen from 73% to 59%. Zhou Shizhen also suggested increasing investment in research and development while expanding domestic demand. “In 2011, China’s R&D investment was only one-fourth of the US’s R&D investment. The lack of attention to science and technology innovation, insufficient investment, and poor results.†Letting the factory return to the United States to encourage R&D and innovation is also Obama’s emphasis on returning to the US for manufacturing. One of the important initiatives. In his 2012 State of the Union address, Obama pointed out: "Today, the findings from our federally funded laboratories and universities are likely to lead to new treatments that kill cancer cells without damaging healthy cells. The new lightweight bulletproof vests used by police and soldiers can block any bullets. Please don't get rid of these investments in your budget. Please support research and innovation, which brings computer chips and the Internet, bringing new jobs in the US and Emerging industries.†Obama is also reluctant to give up low-end manufacturing and began encouraging multinational companies to return to the US. For example, it is recommended that every multinational company that goes overseas should pay the basic minimum tax to the United States to reduce taxes for companies that choose to stay in the United States and employ US labor. For example, if a company is willing to move into a factory because of Communities that have been hit hard, should also be helped when financing new factories, equipment or new employees. This runs counter to past US policies. After the Second World War, the United States gradually shifted its labor-intensive and low-end manufacturing industries from domestic to overseas through three adjustments. In the 1950s, it was Japan and the Federal Republic of Germany. In the 1960s, it was the Asian Tigers, Mexico, and Brazil. In the 1980s, it was China and ASEAN. Today, after the heavy blow of the 2008 financial crisis and the long-term economic downturn, the financial-led economic development model will eventually be replaced by entities. However, the idea of ​​returning the factory to the United States is not optimistic. Li Yu pointed out that the main consideration of multinational companies in the global layout is the labor and market factors, even if the factory is not located in China, it will be located in the third world countries. "It is not very realistic to move labor-intensive industries such as textiles back to the United States, and it may be realized to a certain extent, but it is not very effective." Zhou Shizhen also believes that the process of globalization reflects the profit-seeking nature of capital, that is, where the cost is low. Where to produce. Obama’s measures may retain some of the low-end manufacturing, but most of the more “money-loving†capitalists will not move the factory back to the United States. "In the case of Apple Computer, the assembly fee is $6 in China and $65 in the US. If the assembly plant is moved back to the US, American consumers will no longer be able to enjoy the low price of $299." Zhou Shizhen also said that China’s advantages are gradually lost in terms of labor and production costs. For example, the wages of a worker who is currently working in Guangzhou are 2.5 times that of Ho Chi Minh City and 5.2 times that of Bangladesh. Under this circumstance, the traditional export-oriented labor-intensive industries must achieve “deep processingâ€, “high value-addedâ€, “upgrade†and “creative brandâ€. “China now has funds and capabilities, as long as it is in research and development. Production, technological innovation, brand and other aspects should be completed, and it should be possible to complete industrial restructuring and upgrading within 5 to 10 years."