By Emeka Chiakwelu strategist@afripol.org
In the wall street Journal piece written by Stephen Moore he coined the headline, ‘The Conscience of a Capitalist’. In trying to comprehend the methodology and modus operandi of the logic behind the Chinese capitalism I recycled and came up with the above title. To understand how the Chinese business community was able to transform themselves and their country is not that simple. The trajectory rise of
Certainly the Chinese capitalistic revolution unlike their communist revolution did not happen in one day. The term capitalist revolution is being used in this context to denote and elucidate the emergence and the taking root of trade liberalization and fiscal decentralization in Ch
It was windy and difficult path to get to this level that spurred
The Chinese old saying: "A journey of a thousand miles begins with a single step" is exactly what
The Chinese communist leadership and bureaucrats spurred innovation and free enterprise in
Consequently,
The Chinese are quick to dominate manufacturing by producing products with very low wage and without strict labor and environmental regulations. As a result of the abundance and cheap labor it becomes very difficult, if not impossible to compete with the Chinese. Most of the American manufacturing and industrial sector has literally vanished. With American high standard of living compounded with not-so-cheap labor and regulations, the products made in
With
The Chinese capitalist can target a particular industry in American or any other country for matter and flood the market with the products at a cheaper price and the small local manufacturer do not have the resources and connections to offset the Chinese made products. Therefore of recent the President Obama imposed tariff on Chinese tires which may be the wave of the future. "The tire tariff will amount to 35 percent the first year, 30 percent the second and 25 percent the third. Although a federal trade panel had recommended higher levies — of 55, 45 and 35 percent, respectively — the decision is considered a victory for the United Steelworkers union, which filed the trade complaint."
The downside is that it may trigger trade war and everybody will be a loser. Although the free marketers are not comfortable with the tire tariff but no one has a better alternative. For if nothing is done before you know it the Chinese tires will be the only tires in the market. But for the sake of free market a negotiated settlement may be more appropriate, if not cordial with relative tranquility. At same time trade quotas must be discourage for it is antithesis of capitalism and competition. For with competition comes trade specialization and choices for the ultimate consumer.
Emeka Chiakwelu is the Principal Policy Strategist at Afripol Organization. Africa Political and
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