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Exports, Imports And The China Bloc
What happens if export growth falters?
That's a question Chinese officials -- and particularly Beijing's economic planners -- would rather not ponder. Just about the only thing China's beleaguered economy has going for it is exports, which've been strong. Suddenly, even that pillar looks wobbly.
Shipments abroad grew just 2.4% last month, data released on Monday showed. That was nowhere near consensus, and represented a marked downshift from August's pace. In fact, last month's increase was th
The American consumer has and will continue to take advantage of lower prices from China. I recently replaced some windows in my condo with new windows and a sliding door and, therefore, had to purchase new blinds. I priced Hunter Douglas blinds through a local provider for 2 large windows and one sliding door. The cost would have been $7,500. The cost seemed ridiculous, but I absolutely needed blinds in my bedrooms!
After a 2 minute search on Amazon- I found a very highly rated (several thousand reviews) window shades/blinds provider. I had to provide exact measurements and select style/color from a screen (instead of from a sample book)- but since the estimated price was only $750, instead of $7,500, I decided to go with the Amazon option- which turned out to be a provider straight from China (no US based point of contact).
Once I placed the order on Amazon, I received an email directly from the Chinese factory to confirm a few details. Five days later, I received a second email from the Chinese factory confirming shipment details, including a Fed Ex tracking number. Five days later, I received the blinds. I had them installed yesterday- they are absolutely indistinguishable from the Hunter Douglas blinds I have on my living room windows.
Not sure what this means for a lot of US based businesses in the short term, but it can’t be good over the long term.
Now Xi’s watching everything you do from nano cameras embedded in the plastic tips on the ends of your blinds’ draw strings.
LOL 🙂
But seriously, where do you think at least some of the Hunter Douglas blinds are manufactured? The HD website says that they manufacture in US, China and Europe. No indication of the percentage of manufacturing, by region.
Truly, why ever would you care? If you got what you wanted at a 90% discount you’re the winner. That’s market economics. You have $6000 in free money you wouldn’t have had. We’ve been doing the same thing inside our own country for decades. Our sheets used to be made in MA with cheap labor and very cheap water power. Then those laborers unionized so the companies went to the South where there were no unions. Soon the labor became more expensive along with the power so we went off-shore, especially to make our clothing. We want our companies to make more money so the stock will go up. This is how it is done. If workers want more money they have to create a personal competitive advantage, enhance their skills, etc. There are only so many ways to do the problem and US companies must use them all when they are up against India, China, even Vietnam. The best dress shirts I own, as well as many of my shoes, are made in the land of our former enemy, whose population we tried to eradicate, and who is are now one our biggest trading partners. On sale I get those shirts for $45
Some of the Chinese product price advantage will go away with the withdrawal of de minimis treatment.
On the US product side, $7,500 seems ludicrous for three sets of plastic slats and strings that are probably made in China, maybe in the same factory as the $750 blinds.
Everyone has a different “X”, as in “I’d pay X more for a US made product”. For most people I know, X is about 1.5, averaged across categories. For people who would consider paying $7,500 for a few blinds, X might be higher. But it ain’t 7.
You’d think that China should do everything it can to ward off a downturn in the West. As it stands, when the West sneezes China catches a cold, and when the West gets a cold China gets the Wuhan treatment. However, the Chinese and Western govts increasingly see themselves playing a zero-sum game.
By the way, I’m surprised Putin doesn’t wear lifts to avoid Xi towering over him. Per the Infallible Internet, Putin is 5′ 7″ and Xi is 5′ 9″. Putin should be wearing 3″ lifts. But maybe Xi is wily and is wearing 3″ lifts too.
instead Putin wears a girdle to magnify Xi’s girth…