Editors note: While this article portrays overcapacity in China’s automotive manufacturing plants as a problem, it may also be the beginning of driving American companies out of local and global markets with subsidized, state supported competitors. Chrysler, Ford and General Motors saw a booming Chinese driving culture and cheap labor. Now the market is slowing,…
Editor’s note. The 232 tariffs have succeeded in getting the steel industry to the 80% capacity utilization target. Steel prices are now below pre-tariff levels, because the industry can be profitable with the same prices as before because fixed costs are spread across more output. The domestic steel industry last week exceeded the capacity utilization…
Excerpt. “The Wall Street and globalist wing of the administration seem to be pushing for a short-term deal that we know will not be sufficient for our long-term interests,” [Michael Stumo] said. President Trump stoked expectations Monday for a successful conclusion to U.S.-China trade talks, saying he anticipated signing an agreement with Chinese President Xi Jinping…
Editor’s note: Globalization inherently lessens the wage share of the economy, even if trade deals are “fair”. Localization is not explicitly on the agenda, but it arguably should be. Workers’ slice of the pie has been shrinking, confounding economists [Paul Kiernan | February 23, 2019 | Wall Street Journal] WASHINGTON—With U.S. unemployment near lows seen…
Editors note: The use of tariffs continues to gain popularity. The prior opposition to imposing tariffs is slowly morphing into opposition to reducing them. BEIJING (Reuters) – A top U.S. business lobby in China said on Tuesday that a majority of its member companies favored the United States retaining tariffs on Chinese goods while Washington…
Excerpt. “Following a Warring States philosophy of tricking your opponent into doing your work for you, Deng knew that technology would be the driver for building the Chinese economy and “believed that the only way China could pass the United States as an economic power was through massive scientific and technological development. An essential shortcut…
Sees compromise agreement with Beijing as loss of bargaining power Washington. In response to recent reports that President Trump is moving towards an agreement with China, Dan DiMicco (CPA Chairman) and Michael Stumo (CPA CEO) issued the following joint statement: “We urge President Trump to continue his strategy of strength and leverage in the US…
Editor’s note: Tariffs have been pro-growth. That is one reason manufacturers like KitchenAid have trouble finding workers. Tariff-armageddon still is not happening. Companies discover investment in workers as a way to keep churn low [John D. Stoll | February 22, 2019 | Wall Street Journal] Jennifer Hanna would be a dream hire for the many companies…
Editors note: Dan DiMicco, CEO of CPA, talks on “squawk on the street”regarding ongoing trade talks between the US and China. Dan Dimicco, former Nucor CEO and member of the USTR Advisory Committee for Trade Policy and Negotiations, joins “Squawk on the Street” to discuss the ongoing trade talks between the U.S. and China and…
Editor’s note. Sen Rubio has become very strong on US China relations. Sen. Marco Rubio (R-FL) told Breitbart News exclusively that China’s intense international push for global dominance is the biggest threat that America has ever faced, even more substantial than the one that the Soviet Union posed in the 20th century during the Cold…
