The Trump administration is focused on appropriation of intellectual property if a product is manufactured in China and on the huge trade deficit with China.
If U.S. companies that manufacture goods in China feel that the appropriation of their intellectual property costs more than manufacturing in China benefits their bottom line, they would find another country to manufacture these goods. I assume that those companies who still manufacture in China have done this analysis and have concluded that there are more economic benefits to manufacturing in China even though they have to give up intellectual property.
I also assume that many companies have concluded that the benefits of manufacturing in China do not provide more economic benefits and have moved their manufacturing to one of the other 194 countries on this earth.
So I don’t understand why the Trump administration doesn’t see that U.S. companies who manufacture their goods in China choose to do so. Why are U.S. companies and the Trump administration complaining?
A trade war is not the solution! U.S. policies could make it advantageous for U.S. companies to manufacture goods in countries that don’t ask U.S. companies to surrender their intellectual property secrets.
How about Mexico, Honduras, Costa Rica, etc.? They need an economic boost. Maybe their citizens would find it advantageous to stay at home and work for a reasonable pay rate. This solution would solve two problems with one policy, immigration and trade.
Because China is opposed to the democratic form of government, its government will use the debt the U.S. owes to oppose the development of democratic countries throughout the world. The solution is to create policies that make it advantageous to manufacture U.S. goods in countries that have a trade deficit with the US.
Trade wars are not the answer.
Laird Carlson
Mancos
