China less dependent on US buying cheapcrap? Au Contraire...

[c1ue]

http://biz.yahoo.com/ap/080911/trade.html

America's trade deficit shot up in July to the highest level in 16 months as oil imports hit an all-time high, offsetting strong export growth. The deficit with China climbed to the second highest level on record.

The Commerce Department reported Thursday that the deficit rose by 5.7 percent to $62.2 billion in July, much worse than the $58 billion deficit that Wall Street expected. It pushed the gap between what America imports and what it sells abroad to the highest level since March 2007.

That increase offset another strong showing for U.S. exports which rose by 3.3 percent to a record $168.1 billion, reflecting big gains in overseas sales of commercial aircraft, computers and U.S.-made cars.

That would be the Boeing soon-to-be-striking-labor-force aircraft, the iPods, and the used American SUVs.

Even so, still headed for $700B deficit.

[touchring]

Re: China less dependent on US buying cheapcrap? Au Contraire...

i'm not surprised, even the prices of cheap crap have risen due to inflation.

[GRG55]

Re: China less dependent on US buying cheapcrap? Au Contraire...

http://biz.yahoo.com/ap/080911/trade.html





That would be the Boeing soon-to-be-striking-labor-force aircraft, the iPods, and the used American SUVs.

Even so, still headed for $700B deficit.

The China "cheapcrap" must be the stimulus cheques being put to their usual good use. Didn't WalMart blow away revenue growth forecasts for the same period? Sorta fits, eh.

And the idea that Boeing and any other significant US exporter is going to thrive, and drive down the trade deficit, with the US$ on an upward rampage is laughable.

[question: I thought the iPods were made/assembled in China?]

[phirang]

Re: China less dependent on US buying cheapcrap? Au Contraire...

The China "cheapcrap" must be the stimulus cheques being put to their usual good use. Didn't WalMart blow away revenue growth forecasts for the same period? Sorta fits, eh.

And the idea that Boeing and any other significant US exporter is going to thrive, and drive down the trade deficit, with the US$ on an upward rampage is laughable.

[question: I thought the iPods were made/assembled in China?]

ipods are made in china, as are parts of boeing planes!

[Tulpen]

Re: China less dependent on US buying cheapcrap? Au Contraire...

Good point!

People's perception that China only manufactures the old "Made in Hong Kong" cheap plastic toys like goods does not seem to want to go away.

[GRG55]

Re: China less dependent on US buying cheapcrap? Au Contraire...

Good point!

People's perception that China only manufactures the old "Made in Hong Kong" cheap plastic toys like goods does not seem to want to go away.

When the Japanese started to compete seriously with the American car makers the myth of "cheapcrap Made in Japan" persisted for so long in the Boardrooms of GM and Ford, that by the time they finally woke up it was too late. The Chinese will not take nearly as long as Japan to move up the quality curve. After they become dominant in emerging markets with their vehicles, there is a good possibility they will quickly turn their sites on the more demanding developed markets so they can keep growing the sector.

My father purchased a new 1300cc Datsun pick-up truck in 1966, to use as an economical commuter car and for weekend "stuff". At that time nobody in Canada had ever heard of Nissan Motors, and the neighbours laughed at the "toy truck". We used the truck on fishing trips, to haul snowmobiles, and after my Dad died 14 years later, my oldest brother kept using the truck as a bush vehicle on his hunting trips for years afterward. The body rusted, but we couldn't kill the rest of the vehicle. Some "cheapcrap".

[GRG55]

Re: China less dependent on US buying cheapcrap? Au Contraire...

...And the idea that Boeing and any other significant US exporter is going to thrive, and drive down the trade deficit, with the US$ on an upward rampage is laughable...

Then again, perhaps Boeing doesn't need to be an "exporter" any more...;)

Pentagon hands tanker tangle to next president
By Andrea Shalal-Esa and Jim Wolf Wed Sep 10, 7:04 PM ET


WASHINGTON (Reuters) - The U.S. Defense Department has ended for now a $35 billion transatlantic aerial-refueling competition, handing a nagging seven-year headache to the next administration and boosting Boeing Co's hopes to keep Airbus planes out of the Air Force fleet...

...After Boeing protested its loss on procedural grounds, a congressional umpire found the Air Force made "significant errors" in evaluating the rival bids...

...Rather than hand over "an incomplete and possibly contested process," Gates said he wanted to give the next administration a free hand to determine the military requirements, funding levels and how to weigh the bids...

[Slimprofits]

Re: China less dependent on US buying cheapcrap? Au Contraire...

Didn't WalMart blow away revenue growth forecasts for the same period? Sorta fits, eh.

In fact, Walmart and other retailers offered free of charge stimulus check cashing services and other related deals.

[The Outback Oracle]

Re: China less dependent on US buying cheapcrap? Au Contraire...

I keep wondering why it is that the fact, that, if you puff an economy up somewhere it is going to blow out somewhere else, does not occur to mainstream economic commentators. What does Bernanke think is going to happen when he throws the money out of the helicopters? Well the stimulus package was such an occurrence. Maybe they did it as an experiment to see what would happen? If so, for a small commission I could have saved them a lot of money.

[touchring]

Re: China less dependent on US buying cheapcrap? Au Contraire...

In fact, Walmart and other retailers offered free of charge stimulus check cashing services and other related deals.

The stimulus check might explain the increased deficit, more buying of cheapo goods at walmart.

[oddlots]

Re: China less dependent on US buying cheapcrap? Au Contraire...

From what I've read China's exports to the US as a portion of their total exports has been falling while they're exports to Japan and Europe have been rising. Given our 1) disdain for US consumer discrimination and 2) respect for Japanese and European (largely German) engineering and workmanship it would seem that the Chinese are indeed working their way up the quality curve and its hidden by the middleman. Without wanting to evoke the "yellow peril" idea, it sort of reminds me of that moment in Alien (3?) where the Alien jumps on the ladder some distance below Sigourney and the impact and shock forces the realisation on the exausted heroine's face that she is just going to have to dig even deeper to outrun it. Our kids better get some good engineering and maths training just to run in place (ie, survive, economically speaking.)

[touchring]

Re: China less dependent on US buying cheapcrap? Au Contraire...

This is indeed exemplified by the HTC brand, which is Taiwanese and sounds like a cheapo, but actually makes the best Windows PDA phones.

From what I've read China's exports to the US as a portion of their total exports has been falling while they're exports to Japan and Europe have been rising. Given our 1) disdain for US consumer discrimination and 2) respect for Japanese and European (largely German) engineering and workmanship it would seem that the Chinese are indeed working their way up the quality curve and its hidden by the middleman. Without wanting to evoke the "yellow peril" idea, it sort of reminds me of that moment in Alien (3?) where the Alien jumps on the ladder some distance below Sigourney and the impact and shock forces the realisation on the exausted heroine's face that she is just going to have to dig even deeper to outrun it. Our kids better get some good engineering and maths training just to run in place (ie, survive, economically speaking.)