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Not long ago, the U.S. Congress was going to pass a law putting a high tariff on incoming Chinese goods because they claimed that China was a currency manipulator, that is to say; keeping the Yuan undervalued to give China a trade balance advantage. During this time of accusation, China has screamed and had enough of that, and made all sorts of counter-accusations, but for a brief couple of weeks allowed the Yuan to rise slightly.
After the Chinese ambassador, the US State Department, the Obama Administration, and other free-market capitalists decried the congressional intervention, the U.S. Congress decided to forget about passing that bill. Not more than two weeks after that China proclaimed that it would not allow the Yuan to float, instead, they were going to concentrate on growth, and if they allow their currency to float, it would inhibit growth.
It seems China does what it has to do, only when it figures it has to, and the rest of the time there is economic manipulation, and other questionable trade practices. There was an interesting article recently in the Australian Sidney Morning Herald titled; "A million Chinese employed to crack down on fake goods," by Courtney Trenwith, which was published on October 26, 2011. The article stated;
"Cheap fake goods from China will soon be wiped out, the head of Chinese international trade said in Perth yesterday. The Chinese Government's intention to crack down on the black market, there were about 1 million people employed to remove fake goods from Chinese streets said the China Council for the Promotion of International Trade. China is arguably the counterfeit capital of the world, attracting much criticism from high-profile designers and entrepreneurs for the proliferation of replica items as vast as t-shirts, CDs, and DVDs, handbags and jewelry."
This sounds all good and wonderful, and we would hope that China would stop its intellectual property theft, copyright violations, and make sure that they closed all those fake Apple stores. It seems also that 1000 people working on this is an incredibly large regulatory force to stop this patent piracy, and prevent these fake products from being manufactured there. Still, some people don't realize how big China is, and how few people 1000 inspectors is compared to the size of their manufacturing base.
Further, we know there's lots of corruption in China, and I bet those 1000 inspectors all get rich by looking the other way as they go about their business from time to time. That doesn't mean they won't stop some of the product piracy and intellectual capital theft. But as far as I'm concerned it's a little too little, too late, and the only reason that China is even doing this, is because other nations such as the United States, Australia, and members of the EU are complaining profusely.
China does not want to be embarrassed again on the world stage during the G 20 economic summit which is coming up. Like I said, China does what it has to do, temporarily, and puts out peaceful propaganda, when in reality all it cares about is promoting growth and profits, regardless of the expense to its trading partners. Indeed I hope you will please consider all this and think about the realities of doing business with China.
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