China and Asian as the White man new industrial slaves
Chinese/African American :Understanding the reality of the new political economy
By Isiah Scott
The black American industrial workforce is now disappearing. After 30 years of cannibalization by deindustrialization and outsourcing, the African American skilled workforce has passed the point of critical mass of critical survival both in terms of total numbers and skill levels. China and Asian are the white man’s industrial slaves.
Are young black and white workers useless mouths?
The critical, yet little report fact in the February 9, 2005 U.S. Commerce Department was the fact that additional strategic amount of U.S. manufacturing capability has been willfully cannibalized, abandoned or relocated overseas by American multinationals.
This reduction was done in order to further take advantage of Asian slave labor and modern Asian infrastructure rather than build advanced digitalized manufacturing infrastructure in North America.
Expanding modern advanced digitalized manufacturing infrastructure in the U.S. would put the multinational trillion dollar labor intensive infrastructure in Asia at serious risk and reduce the need for Asian imports.
As a direct consequence of this capability reduction, America manufacturing continues to be more and more constricted and retarded.
This is creating a false economics for cannibalization of future U.S. capability. A new and powerful industrial policy fault line is emerging between smaller American firms around this issue.
Leading American multinationals like Delphi who is closing ten more U.S. auto parts manufacturing plants this year in the U.S. Delphi is expanding operations at 13 new modern plants in China and transferring critical core production technologies.
Delphi is trying to position its Chinese plants to brake into the lucrative German and Japanese auto supply chains. This Asian relocation policy by Delphi and other auto parts manufactures is opening the door wide to China capture of increase market share of the 1.3 trillion-auto parts industry.
At the same time, the door is being closed to increasing numbers of young American potential industrial auto part workers.
Since Delphi separated from GM, Delphi U.S. labor force has shrunk from more than 40,000 in 2000 to 31,000 people at the end of 2004. Delphi now has 76,000 employees in Mexico and South America. Because of the planned lack of investment in modern final assembly manufacturing platforms in North America, U.S. manufacturing continues to be artificially retarded and increasingly reduced and limited to mainly providing product design and engineering and key value added components and sub-assemblies that cannot be produced in Asia or other final assembly locations around the world.
As a direct consequence of this lack of integrated all phase digitalized manufacturing platforms in North America, the new tidal waves of 1.7 trillion foreign imports are pushing unabated into what remains of American labor intensive advanced manufacturing.
Remaining U.S. manufacturing is being forced into make a retarded transition to a digitalized integrated design-engineering platform in order to remain completive. This retardation or limitation of their manufacturing inputs to design and first phase product development functions puts them at serious risk of being replaced by Asians counterparts being trained within their supply chains. Also, many smaller American supply chains partners are being forced out of business.
Black youth and entry-level employees are being triaged to consolidate and migrate U.S. what remains of advanced manufacturing. As we will see below, most of the increase of U.S. trade with China, Canada and Mexico is not finished goods, but components and sub-assembly that returns to America as imports.
There is a deadly slave triangular backdoor sub-assembly trade growing between China, Canada and Mexico in components and sub-assemble and final assemble that end up in America as cheap imports. The strategic aspects of this triangular backdoor sub-assembly trade are hidden in the U.S. Commerce Department.
Over 30 per cent of Canada exports to China are sub-assemblies, returning to the U.S. via Canadian or Mexican exports to the U.S. Almost 50 per cent of the 617 billion American trade deficit is accounted for in the 274 billion deficits with just China, Canada and Mexico countries. There are few articles connecting the economic dots of the emerging China, Canada and Mexico triangular trade. As stated above, in the case of Delphi, the closing of Americans takes on a whole different meaning when viewed in the context of not just Delphi operations in Chinese, but also Canada, Mexico and Southern America.
China and Asian triangular trade with Canada and Mexico account for most of the increase trade deficit and is the new paradigm to use in order to understanding the deepening trade problem.
Delphi type of manufacturing integration, using Chinese final assemble platforms is a common model in Asian, but it is now moving to other regions of the world. Its import also, not to miss the context of China in the slave political economy.
Americans tend to still think of China in terms of an Asian nation-state and a few American companies like Wal-Mart, that is an out of date, limited and dangerous paradigm. China’s power is reaching into to the political economy of Europe in a real way.
Europe is to the political economy of Africa, what the U.S. is the political economy of the Americas. China is also reaching into the Middle East and East Africa oil political economy.
The best news about the U.S. Commerce Department report on Trade is the fact that China is increasing forced out of economic necessity to use larger and increasing amounts of foreign value added components and sub-assemblies, in order to penetrate deeper into advanced high tech export sectors of the U.S. and Western Europe. This growing value added limitation clearly demonstrates China basic industrial weakness.
The so-called Chinese discount is based on super thin final assembly margins, and leveraging manufacturing efficiently or productivity. The Chinese value-added crisis also exposes one of the critical importances to China of the lifting of the European arms embargo to China's long-term industrial growth.
The little reported fact that Chinese manufacturing is reaching its upper technological and infrastructure limits is made clear and transparent for all to see, even by China’s friends at Wharton School.
The more advance, high tech and value added the Chinese export product, the more components China must import, before they can start final assemble. Even an aggressive Communist country like China that is schooled in strategic investments and strategic industries, is starting to run into the negative limitations of slave labor economics, that is a serious shortage of skilled labor, infrastructure and advanced technology.
The strategic value of new European business partners will allow China new accesses to core technologies and also the ability to integrate the emerging slave labor platforms in the former Soviet bloc states of eastern Europe into the Chinese supply chain. A new wave of European partnerships will allow the Chinese government and firms increase leverage against older British, Japanese and American multinationals.
The new Chinese slave wages structure emerging in the intercity of the U.S., have effectively removed the youth African American father as a functional economic member of the black family. American lower level wages remains repressed.
The black American industrial workforce is now disappearing. After 30 years of cannibalization by deindustrialization and outsourcing, the African American skilled workforce has passed the point of critical mass of critical survival both in terms of total numbers and skill levels. As U.S. imports of cheap Chinese goods approach 300 billion over the next two years, alone with deepening Chinese penetration of U.S. high tech segments, almost a million additional jobs will be lost to China. Hardest hit will continue to be African American youth and lower skilled urban American workers.
The perfect storm of India/Chinese gathering in the U.S. service sector outsourcing poses a seriously threat to the single head of households, which make up 70 per cent of black young households.
The Financial Times of London is leading the charge to try and connect the dots between outsourcing and the additional pressures faced by older workers (and black youth) in trying to make a rapid transition to a higher education based virtual service economy. Currently the Wall Street Journal jointed the emerging debate, carrying a pro Bush article
“The War on the War on Poverty” in which it noted that 100 million Americans were clients of the federal government and attacking the failure of the Europe model of the welfare state. No connections were made to China or outsourcing, but the reader was left thinking were the new Bush (economic) dynamism would come from to encourage and empower the poor to joint the “cowboy capitalism” of the WSJ.
Black newspapers and journals appear to fear reporting on Chinese slave labor, much less its relationship to African American employment (or lack of) crisis.
There are more African American youth in jail than in senior colleges. The next generation of W.E.B. Dubois’s talented tenth youth is being retarded by the dysfunctional educational culture of the so-called black Bay Bay kids and the collapse of public school funding. This is happening at the same time that foreign value added imports are driving up the educational bar for most employment.
This is evidenced by the fact that less than 20 per cent of black youth, 16-19 years of age are in the workforce. Official government youth unemployed in 1.7 million, but only 1 in 5 black youth officially are working.
The degree of black youth out of the workforce can best be understood in terms of 1.7 trillion dollar of foreign imports in general and the particular pressures that value added Chinese, Canada and Mexican imports put on limiting local manufacturing and youth employment.
Beyond the well documented and deepening challenges faced by African Americans in basic computer literacy, the lack of developed critical thinking skills and expression in a paperless, virtual industrial culture is alarming.
In a blistering critique of American schools before the Governors Association, Bill Gates, the chairman of Microsoft said American high schools are obsolete” and are ruining the lives of millions of Americans ever year”. Mr. Gates said, “ In district after district, wealthy white kids are taught Algebra II while low-income minority kids are taught to balance checkbooks”. Gov. Mark Warner of Virginia chairman’s of the association, said, “The economic ramifications of that (poor schooling) could be devastating to our country.” This lack of writing skills, along with growing weakness in mathematics and sciences has been a primary finding of the annual national SAT testing for years.
The new essay format of the SAT’s will expose the high degree of this writing weakness starting with the March testing session. As a consequence, fewer African American students will passed the SATs.
As stated above, the perfect storm of India/Chinese gathering in the U.S. service sector outsourcing poses a new and serious threat to Black employment in service sector employment which is increasing based on business and administrative software literacy. The fact that the India/Chinese service sector outsourcing model is Internet-based creates a new deadly threat to service sector employment that is not being addresses in American high school education. The new massive targeting of corporate back office services by high tech Indian /Chinese services imports to America, has is further weaken, an already fragile synergies of urban business education, i.e. mathematics, business office software applications and post high school employment.
That is, what remain have American manufacturing and service support jobs; increasing requires higher levels of both education and skills training. Chinese cheap imports particularly reexported finish goods attack the need for local final assembly and support jobs. The local final assembly and support jobs that survive the imports require post high school levels of skills training.
The new push to import foreign students, particularly in science and engineering, is an attempt to mask the growing need for educated young American workers. For Black youth the cheap Chinese value added imports, taxes the weaknesses in their educational preparation and limits their opportunities to get local final assembly and support jobs.
Studies of the structure of Chinese/U.S trade suggest that a 250,000-job displacement (mostly manufacturing) took place in 2004 due directly to the toxicity Chinese imports and the massive 162 billion Chinese trade deficit in 2004.
This toxicity had a serious impact on youth employment in the intercity. The 196 billion of Chinese imports is the single largest component and most toxic aspect of the 1.7 trillion tide wave of imports, given China relationship to mega distribution powers like Wal-Mart and the value added nature of most Chinese imports to the U.S. Chinese imports attacks labor intensive local manufacturing, specificity scales labor intensive final assembly plants with below market cheap products.
Under attack from cheap Chinese imports, most U.S. manufacturing companies are increasing force into a fallback position to limit domestic production to value added components and sub-assembles, final assembly is the first element of U.S. manufacturing triaged. This is the same element that most impacts black youth.
Missing from the U.S. Commerce Department report on China Trade was any comments on the super cheap Chinese slave wages.
According to BusinessWeek, The U.S. Department of Labor has created a wages cost model of China, on 65 cent per hour for urban labor and 48 cent for agriculture labor.
There are reports of Chinese still working in the interior for a dollar a day. The higher toxicity (lack of consumption) of China trade is based on the fact that Chinese industrial wages averaging 65 cent, are some of the lowest in the world. Chinese workers are able to leverage over a trillion of modern infrastructure, with their super low wages.
Chinese workers are forced to save 40 per cent of their take home pay for pension, children education and health care expensive. While 335 million Chinese cell phones sound impressive, most is cheap 20 dollar a monthly Voice over the Internet connections. This is the equivalent of 67 million American cell phone at 100 dollars a month or what black America spends on wireless phones.
Chinese workers and their family are operating 39 cent an hour, super low slave wages. There is simply not much left in a Chinese budget to buy American valued added finish imports. Much of U.S. exports to China is in fact not finish goods or products, but components and sub-assembles.
The fact that Chinese/US trade ratio (toxicity) is the highest in American history, masked the myth of the allure of Chinese domestic consumption.
The critical, yet little reported fact is that only 15 per cent of the Chinese population having any health coverage, the export trade toxicity fails to measure the immediate health risks both in terms of the Chinese people and the world community directly related to lack of any meaningful national heath infrastructure either human or plant and equipment.
If the Avian flu, i.e.H5N1 virus should take root in Chinese eastern coastal cities, the world would pay the price for China lack of heath infrastructure. Chinese people are terrified of the H5N1 virus. The Pearl River region, the most technologically advanced region in China in is reporting a 2 million worker shortage, because many workers, mainly young peasants female electric assembly workers, from inland regions, are refusing to return to the urban factories after going home on holiday, out of fear of reports of the H5N1 virus.
Local government and foreign multinationals operating in China to further penetrated American local markets use the money for the Chinese health system.
The so-called black Bay Bay kids and young urban parents are in fact increasing uneducated, untrained and unemployable second generation urban victims of Chinese trade deficits are at serious and deepening political risk.
The destruction of the critical educational role of entry level manufacturing, is the most important factor in the impact of Chinese trade. As stated above, Chinese imports further weaken, the already fragile critical thinking elements of urban public education, i.e. mathematics and sciences.
Chinese trade also, raises the educational bar beyond reach of many American youth and displaced workers. The Financial Times of London recently ran a series of articles that offered real insight into the employment challenges via an analysis of the educational needs of older undereducated unemployed American manufacturing workers, noting the additional pressures faced by them, (and black youth) in trying make a rapid transition to a higher education based virtual service economy.
The challenges are so great that the Financial Times reported movement in Congress to create a new styled national manpower program to address the training needs of former manufacturing workers.
Slave labor platforms like China, Mexico and Canada have leveraged their national currencies to buy up key small American companies in order to accesses core technologies and make it artificially cheap for multinationals to operated from their countries.
Smaller Asian industrialized countries central banks have resisted letting their currencies raise vs., the dollar, in part because China has fixed its yuan to the dollar.
This means that China is positioned to both take market share from and then flood other Asian economies with cheap imports, so long as the dollar keeps falling, and if the small countries let their currencies rise. There have been no real talks either in Washington or on Wall Street about major upward adjustments of either Mexico or Canada’s currencies against the dollar. With combined Canadian/Mexican imports into the U.S. of 412 billion, the time is near for a major push by Bush for currencies adjustments by Canada and Mexico.
The dollar sell off that is spending shocks through the international markets is part of a campaign by small value added Asian industrial countries like South Korea are quietly diversify their foreign reserve away from the U.S. dollar and away from U.S. multinationals Japanese and China controlled dollars transaction, in order to brake out of the slave labor box and try to transition their advance industrial base, before they are bankrupt with the falling dollar and/or cheap Chinese imports. Japan and China export economies size, allows them to play an endgame the small Asian economies are trying to avoid.
The illusion of the great Chinese domestic market and the time honored allure of China, in the case of Nokia are ending. The Nokia/Microsoft joint venture takes the value added cell phone to the next level of high tech and reduces Chinese domestic companies to bottom segment cell phone industry.
Nokia reports that it only has 21 per cent of the Chinese domestic market and 50 per cent of its China manufacturing is exported. Some of the leading firms around the world are coming to better understand there are major risks and limits to the allure of penetrating Chinese market.
Chinese companies are illegally using reverse engineering to copy and steal the core technologies from their Western joint venture partners. This stealing by Chinese manufacturers has cut profit margins to less than 3 per cent and seriously reduced market share in the domestic Chinese markets. Both the Korean and Japanese economies are being seriously affected by new waves of cheap Chinese copies.
This Chinese practice has led many Western firms to quietly start a new trend of disinvesting their critical manufacturing technologies in China. Scania, the word’s fifth-largest marker of heavy trucks, has ruled out manufacturing joint ventures in China.
The Japanese firm Cannon is consolidating its advanced next generation CIM manufacturing in Japan and abandoning future manufacturing expansion in China. South Korea’s top appliance makers, lead by Samsung Electronics, Asia’s biggest technology company are scaling back or suspending their production in China and moving to locate production in other markets outside of China.
The emerging limited access policy by some multinationals and national firms will seriously limit Chinese easy access manufacturing to the much-needed next generation digital production. The Financial Times reports that even inside China, “consumers are shifting to digital products”. Less than 15 per cent of domestic Chinese manufacture has been able to immediately transited to digitalized production. This means a major part of Chinese industrial base will be out of date in a few years. This fact is reflected in reports of increasing Chinese frustrations and failures to gain access to next generation high tech inputs and a new growing resistance within U.S. manufacturing to Chinese takeovers.
A preliminary review of India, Canadian and Mexico’s exports to the U.S., suggest that these countries are in additional to being China partners, is taking advantage of China lack of skilled labor and lack of digital infrastructure to increase their exports to both the U.S. and Europe. Mexico is reporting the best exports in five years. The Chinese import situation is very dynamic, but the new trends point to a window of opportunity for American companies to redress some long-standing issues.
By Isiah Scott
The black American industrial workforce is now disappearing. After 30 years of cannibalization by deindustrialization and outsourcing, the African American skilled workforce has passed the point of critical mass of critical survival both in terms of total numbers and skill levels. China and Asian are the white man’s industrial slaves.
Are young black and white workers useless mouths?
The critical, yet little report fact in the February 9, 2005 U.S. Commerce Department was the fact that additional strategic amount of U.S. manufacturing capability has been willfully cannibalized, abandoned or relocated overseas by American multinationals.
This reduction was done in order to further take advantage of Asian slave labor and modern Asian infrastructure rather than build advanced digitalized manufacturing infrastructure in North America.
Expanding modern advanced digitalized manufacturing infrastructure in the U.S. would put the multinational trillion dollar labor intensive infrastructure in Asia at serious risk and reduce the need for Asian imports.
As a direct consequence of this capability reduction, America manufacturing continues to be more and more constricted and retarded.
This is creating a false economics for cannibalization of future U.S. capability. A new and powerful industrial policy fault line is emerging between smaller American firms around this issue.
Leading American multinationals like Delphi who is closing ten more U.S. auto parts manufacturing plants this year in the U.S. Delphi is expanding operations at 13 new modern plants in China and transferring critical core production technologies.
Delphi is trying to position its Chinese plants to brake into the lucrative German and Japanese auto supply chains. This Asian relocation policy by Delphi and other auto parts manufactures is opening the door wide to China capture of increase market share of the 1.3 trillion-auto parts industry.
At the same time, the door is being closed to increasing numbers of young American potential industrial auto part workers.
Since Delphi separated from GM, Delphi U.S. labor force has shrunk from more than 40,000 in 2000 to 31,000 people at the end of 2004. Delphi now has 76,000 employees in Mexico and South America. Because of the planned lack of investment in modern final assembly manufacturing platforms in North America, U.S. manufacturing continues to be artificially retarded and increasingly reduced and limited to mainly providing product design and engineering and key value added components and sub-assemblies that cannot be produced in Asia or other final assembly locations around the world.
As a direct consequence of this lack of integrated all phase digitalized manufacturing platforms in North America, the new tidal waves of 1.7 trillion foreign imports are pushing unabated into what remains of American labor intensive advanced manufacturing.
Remaining U.S. manufacturing is being forced into make a retarded transition to a digitalized integrated design-engineering platform in order to remain completive. This retardation or limitation of their manufacturing inputs to design and first phase product development functions puts them at serious risk of being replaced by Asians counterparts being trained within their supply chains. Also, many smaller American supply chains partners are being forced out of business.
Black youth and entry-level employees are being triaged to consolidate and migrate U.S. what remains of advanced manufacturing. As we will see below, most of the increase of U.S. trade with China, Canada and Mexico is not finished goods, but components and sub-assembly that returns to America as imports.
There is a deadly slave triangular backdoor sub-assembly trade growing between China, Canada and Mexico in components and sub-assemble and final assemble that end up in America as cheap imports. The strategic aspects of this triangular backdoor sub-assembly trade are hidden in the U.S. Commerce Department.
Over 30 per cent of Canada exports to China are sub-assemblies, returning to the U.S. via Canadian or Mexican exports to the U.S. Almost 50 per cent of the 617 billion American trade deficit is accounted for in the 274 billion deficits with just China, Canada and Mexico countries. There are few articles connecting the economic dots of the emerging China, Canada and Mexico triangular trade. As stated above, in the case of Delphi, the closing of Americans takes on a whole different meaning when viewed in the context of not just Delphi operations in Chinese, but also Canada, Mexico and Southern America.
China and Asian triangular trade with Canada and Mexico account for most of the increase trade deficit and is the new paradigm to use in order to understanding the deepening trade problem.
Delphi type of manufacturing integration, using Chinese final assemble platforms is a common model in Asian, but it is now moving to other regions of the world. Its import also, not to miss the context of China in the slave political economy.
Americans tend to still think of China in terms of an Asian nation-state and a few American companies like Wal-Mart, that is an out of date, limited and dangerous paradigm. China’s power is reaching into to the political economy of Europe in a real way.
Europe is to the political economy of Africa, what the U.S. is the political economy of the Americas. China is also reaching into the Middle East and East Africa oil political economy.
The best news about the U.S. Commerce Department report on Trade is the fact that China is increasing forced out of economic necessity to use larger and increasing amounts of foreign value added components and sub-assemblies, in order to penetrate deeper into advanced high tech export sectors of the U.S. and Western Europe. This growing value added limitation clearly demonstrates China basic industrial weakness.
The so-called Chinese discount is based on super thin final assembly margins, and leveraging manufacturing efficiently or productivity. The Chinese value-added crisis also exposes one of the critical importances to China of the lifting of the European arms embargo to China's long-term industrial growth.
The little reported fact that Chinese manufacturing is reaching its upper technological and infrastructure limits is made clear and transparent for all to see, even by China’s friends at Wharton School.
The more advance, high tech and value added the Chinese export product, the more components China must import, before they can start final assemble. Even an aggressive Communist country like China that is schooled in strategic investments and strategic industries, is starting to run into the negative limitations of slave labor economics, that is a serious shortage of skilled labor, infrastructure and advanced technology.
The strategic value of new European business partners will allow China new accesses to core technologies and also the ability to integrate the emerging slave labor platforms in the former Soviet bloc states of eastern Europe into the Chinese supply chain. A new wave of European partnerships will allow the Chinese government and firms increase leverage against older British, Japanese and American multinationals.
The new Chinese slave wages structure emerging in the intercity of the U.S., have effectively removed the youth African American father as a functional economic member of the black family. American lower level wages remains repressed.
The black American industrial workforce is now disappearing. After 30 years of cannibalization by deindustrialization and outsourcing, the African American skilled workforce has passed the point of critical mass of critical survival both in terms of total numbers and skill levels. As U.S. imports of cheap Chinese goods approach 300 billion over the next two years, alone with deepening Chinese penetration of U.S. high tech segments, almost a million additional jobs will be lost to China. Hardest hit will continue to be African American youth and lower skilled urban American workers.
The perfect storm of India/Chinese gathering in the U.S. service sector outsourcing poses a seriously threat to the single head of households, which make up 70 per cent of black young households.
The Financial Times of London is leading the charge to try and connect the dots between outsourcing and the additional pressures faced by older workers (and black youth) in trying to make a rapid transition to a higher education based virtual service economy. Currently the Wall Street Journal jointed the emerging debate, carrying a pro Bush article
“The War on the War on Poverty” in which it noted that 100 million Americans were clients of the federal government and attacking the failure of the Europe model of the welfare state. No connections were made to China or outsourcing, but the reader was left thinking were the new Bush (economic) dynamism would come from to encourage and empower the poor to joint the “cowboy capitalism” of the WSJ.
Black newspapers and journals appear to fear reporting on Chinese slave labor, much less its relationship to African American employment (or lack of) crisis.
There are more African American youth in jail than in senior colleges. The next generation of W.E.B. Dubois’s talented tenth youth is being retarded by the dysfunctional educational culture of the so-called black Bay Bay kids and the collapse of public school funding. This is happening at the same time that foreign value added imports are driving up the educational bar for most employment.
This is evidenced by the fact that less than 20 per cent of black youth, 16-19 years of age are in the workforce. Official government youth unemployed in 1.7 million, but only 1 in 5 black youth officially are working.
The degree of black youth out of the workforce can best be understood in terms of 1.7 trillion dollar of foreign imports in general and the particular pressures that value added Chinese, Canada and Mexican imports put on limiting local manufacturing and youth employment.
Beyond the well documented and deepening challenges faced by African Americans in basic computer literacy, the lack of developed critical thinking skills and expression in a paperless, virtual industrial culture is alarming.
In a blistering critique of American schools before the Governors Association, Bill Gates, the chairman of Microsoft said American high schools are obsolete” and are ruining the lives of millions of Americans ever year”. Mr. Gates said, “ In district after district, wealthy white kids are taught Algebra II while low-income minority kids are taught to balance checkbooks”. Gov. Mark Warner of Virginia chairman’s of the association, said, “The economic ramifications of that (poor schooling) could be devastating to our country.” This lack of writing skills, along with growing weakness in mathematics and sciences has been a primary finding of the annual national SAT testing for years.
The new essay format of the SAT’s will expose the high degree of this writing weakness starting with the March testing session. As a consequence, fewer African American students will passed the SATs.
As stated above, the perfect storm of India/Chinese gathering in the U.S. service sector outsourcing poses a new and serious threat to Black employment in service sector employment which is increasing based on business and administrative software literacy. The fact that the India/Chinese service sector outsourcing model is Internet-based creates a new deadly threat to service sector employment that is not being addresses in American high school education. The new massive targeting of corporate back office services by high tech Indian /Chinese services imports to America, has is further weaken, an already fragile synergies of urban business education, i.e. mathematics, business office software applications and post high school employment.
That is, what remain have American manufacturing and service support jobs; increasing requires higher levels of both education and skills training. Chinese cheap imports particularly reexported finish goods attack the need for local final assembly and support jobs. The local final assembly and support jobs that survive the imports require post high school levels of skills training.
The new push to import foreign students, particularly in science and engineering, is an attempt to mask the growing need for educated young American workers. For Black youth the cheap Chinese value added imports, taxes the weaknesses in their educational preparation and limits their opportunities to get local final assembly and support jobs.
Studies of the structure of Chinese/U.S trade suggest that a 250,000-job displacement (mostly manufacturing) took place in 2004 due directly to the toxicity Chinese imports and the massive 162 billion Chinese trade deficit in 2004.
This toxicity had a serious impact on youth employment in the intercity. The 196 billion of Chinese imports is the single largest component and most toxic aspect of the 1.7 trillion tide wave of imports, given China relationship to mega distribution powers like Wal-Mart and the value added nature of most Chinese imports to the U.S. Chinese imports attacks labor intensive local manufacturing, specificity scales labor intensive final assembly plants with below market cheap products.
Under attack from cheap Chinese imports, most U.S. manufacturing companies are increasing force into a fallback position to limit domestic production to value added components and sub-assembles, final assembly is the first element of U.S. manufacturing triaged. This is the same element that most impacts black youth.
Missing from the U.S. Commerce Department report on China Trade was any comments on the super cheap Chinese slave wages.
According to BusinessWeek, The U.S. Department of Labor has created a wages cost model of China, on 65 cent per hour for urban labor and 48 cent for agriculture labor.
There are reports of Chinese still working in the interior for a dollar a day. The higher toxicity (lack of consumption) of China trade is based on the fact that Chinese industrial wages averaging 65 cent, are some of the lowest in the world. Chinese workers are able to leverage over a trillion of modern infrastructure, with their super low wages.
Chinese workers are forced to save 40 per cent of their take home pay for pension, children education and health care expensive. While 335 million Chinese cell phones sound impressive, most is cheap 20 dollar a monthly Voice over the Internet connections. This is the equivalent of 67 million American cell phone at 100 dollars a month or what black America spends on wireless phones.
Chinese workers and their family are operating 39 cent an hour, super low slave wages. There is simply not much left in a Chinese budget to buy American valued added finish imports. Much of U.S. exports to China is in fact not finish goods or products, but components and sub-assembles.
The fact that Chinese/US trade ratio (toxicity) is the highest in American history, masked the myth of the allure of Chinese domestic consumption.
The critical, yet little reported fact is that only 15 per cent of the Chinese population having any health coverage, the export trade toxicity fails to measure the immediate health risks both in terms of the Chinese people and the world community directly related to lack of any meaningful national heath infrastructure either human or plant and equipment.
If the Avian flu, i.e.H5N1 virus should take root in Chinese eastern coastal cities, the world would pay the price for China lack of heath infrastructure. Chinese people are terrified of the H5N1 virus. The Pearl River region, the most technologically advanced region in China in is reporting a 2 million worker shortage, because many workers, mainly young peasants female electric assembly workers, from inland regions, are refusing to return to the urban factories after going home on holiday, out of fear of reports of the H5N1 virus.
Local government and foreign multinationals operating in China to further penetrated American local markets use the money for the Chinese health system.
The so-called black Bay Bay kids and young urban parents are in fact increasing uneducated, untrained and unemployable second generation urban victims of Chinese trade deficits are at serious and deepening political risk.
The destruction of the critical educational role of entry level manufacturing, is the most important factor in the impact of Chinese trade. As stated above, Chinese imports further weaken, the already fragile critical thinking elements of urban public education, i.e. mathematics and sciences.
Chinese trade also, raises the educational bar beyond reach of many American youth and displaced workers. The Financial Times of London recently ran a series of articles that offered real insight into the employment challenges via an analysis of the educational needs of older undereducated unemployed American manufacturing workers, noting the additional pressures faced by them, (and black youth) in trying make a rapid transition to a higher education based virtual service economy.
The challenges are so great that the Financial Times reported movement in Congress to create a new styled national manpower program to address the training needs of former manufacturing workers.
Slave labor platforms like China, Mexico and Canada have leveraged their national currencies to buy up key small American companies in order to accesses core technologies and make it artificially cheap for multinationals to operated from their countries.
Smaller Asian industrialized countries central banks have resisted letting their currencies raise vs., the dollar, in part because China has fixed its yuan to the dollar.
This means that China is positioned to both take market share from and then flood other Asian economies with cheap imports, so long as the dollar keeps falling, and if the small countries let their currencies rise. There have been no real talks either in Washington or on Wall Street about major upward adjustments of either Mexico or Canada’s currencies against the dollar. With combined Canadian/Mexican imports into the U.S. of 412 billion, the time is near for a major push by Bush for currencies adjustments by Canada and Mexico.
The dollar sell off that is spending shocks through the international markets is part of a campaign by small value added Asian industrial countries like South Korea are quietly diversify their foreign reserve away from the U.S. dollar and away from U.S. multinationals Japanese and China controlled dollars transaction, in order to brake out of the slave labor box and try to transition their advance industrial base, before they are bankrupt with the falling dollar and/or cheap Chinese imports. Japan and China export economies size, allows them to play an endgame the small Asian economies are trying to avoid.
The illusion of the great Chinese domestic market and the time honored allure of China, in the case of Nokia are ending. The Nokia/Microsoft joint venture takes the value added cell phone to the next level of high tech and reduces Chinese domestic companies to bottom segment cell phone industry.
Nokia reports that it only has 21 per cent of the Chinese domestic market and 50 per cent of its China manufacturing is exported. Some of the leading firms around the world are coming to better understand there are major risks and limits to the allure of penetrating Chinese market.
Chinese companies are illegally using reverse engineering to copy and steal the core technologies from their Western joint venture partners. This stealing by Chinese manufacturers has cut profit margins to less than 3 per cent and seriously reduced market share in the domestic Chinese markets. Both the Korean and Japanese economies are being seriously affected by new waves of cheap Chinese copies.
This Chinese practice has led many Western firms to quietly start a new trend of disinvesting their critical manufacturing technologies in China. Scania, the word’s fifth-largest marker of heavy trucks, has ruled out manufacturing joint ventures in China.
The Japanese firm Cannon is consolidating its advanced next generation CIM manufacturing in Japan and abandoning future manufacturing expansion in China. South Korea’s top appliance makers, lead by Samsung Electronics, Asia’s biggest technology company are scaling back or suspending their production in China and moving to locate production in other markets outside of China.
The emerging limited access policy by some multinationals and national firms will seriously limit Chinese easy access manufacturing to the much-needed next generation digital production. The Financial Times reports that even inside China, “consumers are shifting to digital products”. Less than 15 per cent of domestic Chinese manufacture has been able to immediately transited to digitalized production. This means a major part of Chinese industrial base will be out of date in a few years. This fact is reflected in reports of increasing Chinese frustrations and failures to gain access to next generation high tech inputs and a new growing resistance within U.S. manufacturing to Chinese takeovers.
A preliminary review of India, Canadian and Mexico’s exports to the U.S., suggest that these countries are in additional to being China partners, is taking advantage of China lack of skilled labor and lack of digital infrastructure to increase their exports to both the U.S. and Europe. Mexico is reporting the best exports in five years. The Chinese import situation is very dynamic, but the new trends point to a window of opportunity for American companies to redress some long-standing issues.
posted by Nubianobserver at 5:01 PM
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