China's emergence as an economic powerhouse poses both threats and opportunities for Central
Massachusetts manufacturers. Some companies have lost manufacturing jobs to cheaper Chinese labor, while
others do business in China. Critics argue that the US trade deficit with China is unfair due to differences in
wages, regulations, and China's currency valuation. Supporters counter that coping with China means doing
business there to access its large market. The impact of trade with China on US jobs and the economy is
debated.
This file describes how increasing trade barriers in the US can deteriorate the economic situation of poorer households and increase wealth inequality.
صفحة شيخ الاسلام ابن تيمية على الفيسبوك
https://www.facebook.com/ibntaymyya
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1 Excerpt from the Testimony before the Joint EconoVannaJoy20
1
Excerpt from the Testimony before the
Joint Economic Committee, U.S. Congress
"The Economic Report of the President"
By N. Gregory Mankiw, Kristin J. Forbes, and Harvey S. Rosen
February 10th, 2004
New types of trade deliver new benefits to consumers and firms in open economies.
Growing international demand for goods such as movies, pharmaceuticals, and
recordings offers new opportunities for U.S. exporters. A burgeoning trade in services
provides an important outlet for U.S. expertise in sectors such as banking, engineering,
and higher education. The ability to buy less expensive goods and services from new
producers has made household budgets go further, while the ability of firms to
distribute their production around the world has cut costs and thus prices to consumers.
The benefits from new forms of trade, such as in services, are no different from the
benefits from traditional trade in goods. Outsourcing of professional services is a
prominent example of a new type of trade. The gains from trade that take place over the
Internet or telephone lines are no different than the gains from trade in physical goods
transported by ship or plane. When a good or service is produced at lower cost in
another country, it makes sense to import it rather than to produce it domestically. This
allows the United States to devote its resources to more productive purposes.
Although openness to trade provides substantial benefits to nations as a whole, foreign
competition can require adjustment on the part of some individuals, businesses, and
industries. To help workers adversely affected by trade develop the skills needed for new
jobs, the Administration has worked hard to build upon and develop programs to assist
workers and communities that are negatively affected by trade.
The Administration has also worked to strengthen and extend the global trading system.
International cooperation is essential to realizing the potential gains from trade. Trade
agreements have reduced barriers to international commerce, and contributed to the
gains from trade. A system through which countries can resolve disputes can play an
important role in realizing these gains.
From the Council of Economic Advisors
https://georgewbush-whitehouse.archives.gov/cea/economic_report_20040210.html
2
Democrats Criticize Bush Over Job
Exports
By Edmund L. Andrews
February 11th, 2004
Democrats in Congress and on the campaign trail, citing remarks by a top White House
economic adviser, accused President Bush on Tuesday of encouraging companies to
export jobs overseas.
''The Bush administration said that sending American jobs overseas is a good thing for
America and good for the economy,'' Senator John Kerry of Massachusetts, the front-
runner for the Democratic presidential nomination, said in a statement released by his
campaign.
''They've delivered a double blow to America's workers -- three million ...
TRADE TRIALS AND TRIUMPHSMale SpeakerInternational tr.docxturveycharlyn
TRADE: TRIALS AND TRIUMPHS
Male Speaker
International trade restrictions. According to one study, 93% of economists think such restrictions are a bad
idea because they reduce economic welfare. They believe the trade is the way to produce more, better, and
cheaper stuff and services for us all. The phrase often used to justify trade is "comparative advantage," an idea
that comes up throughout economic says Northwestern Professor Robert Gordon.
Robert Gordon
The real way to talk about comparative advantage is to talk about everyday people, and how about the
example of a lawyer? A woman lawyer, very talented at law but also able to type twice as fast as her male
secretary and what should she do? Should she be doing the typing? No. She should be out winning trials and
winning law cases and that male secretary plotting along at half the speed should be doing the typing because
she probably makes ten times as much as he does.
Male Speaker
And if she is making ten times as much, it means that to the economy, the lawyering is worth ten times as
much as the typing. The typist has a comparative advantage in typing because he can make more that way
than as a lawyer, which without a law degree can make a dime at. The lawyer has an obvious comparative
advantage in lawyering because no one will pay her that much to type. So both parties are better off by
specializing and then trading the fruits of what they do. But if this is the way to go within our country's borders,
why is trade consistently discouraged across borders by the various forms of what is called "protectionism"?
Because countries all over the world are under pressure to protect their local companies and workers from
foreign competition. They do so in several standard ways.
By imposing quotas, a ceiling on the amount of something that can be imported from another country or
imposing tariffs, taxes on all imports coming into a country or instituting other non-tariff barriers like subsidies
to domestic industries so they can price their goods below foreign competitors. For example, the U.S. imposed
tariffs on corn brooms made in Mexico to hike their price and thus, discourage Americans from buying them.
Why? Because the jobs of corn broom workers like those in this Alabama factory were threatened by corn
broom workers in Mexico making one-sixth what these folks were.
Male Speaker
I would not wish to compete, not with the kind of way that the Mexicans are earning, you know, a dollar. I can
live off --
Male Speaker
The same holds true in loads of industries, from textiles to steel. Why did free trade President George W. Bush
slap at 30% import tax on billions of dollars worth of steel from abroad in 2002? To protect American
steelworkers who are losing their job because of cheaper foreign imports.
Dan DiMicco is CEO of Nucor Steel, a low-cost U.S. producer, which historically oppose protectionism, but
even his company had began to feel the ...
This file describes how increasing trade barriers in the US can deteriorate the economic situation of poorer households and increase wealth inequality.
صفحة شيخ الاسلام ابن تيمية على الفيسبوك
https://www.facebook.com/ibntaymyya
-------
مـجموع فتاوى ابن تيمية ◄ 5 / 7 - الحديث
-------
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27 / 45 ◄ حديث بدأ الإسلام غريبًا وسيعود غريبًا كما بدأ ◄ من الصفحة 50 إلى الصفحة 57
1 Excerpt from the Testimony before the Joint EconoVannaJoy20
1
Excerpt from the Testimony before the
Joint Economic Committee, U.S. Congress
"The Economic Report of the President"
By N. Gregory Mankiw, Kristin J. Forbes, and Harvey S. Rosen
February 10th, 2004
New types of trade deliver new benefits to consumers and firms in open economies.
Growing international demand for goods such as movies, pharmaceuticals, and
recordings offers new opportunities for U.S. exporters. A burgeoning trade in services
provides an important outlet for U.S. expertise in sectors such as banking, engineering,
and higher education. The ability to buy less expensive goods and services from new
producers has made household budgets go further, while the ability of firms to
distribute their production around the world has cut costs and thus prices to consumers.
The benefits from new forms of trade, such as in services, are no different from the
benefits from traditional trade in goods. Outsourcing of professional services is a
prominent example of a new type of trade. The gains from trade that take place over the
Internet or telephone lines are no different than the gains from trade in physical goods
transported by ship or plane. When a good or service is produced at lower cost in
another country, it makes sense to import it rather than to produce it domestically. This
allows the United States to devote its resources to more productive purposes.
Although openness to trade provides substantial benefits to nations as a whole, foreign
competition can require adjustment on the part of some individuals, businesses, and
industries. To help workers adversely affected by trade develop the skills needed for new
jobs, the Administration has worked hard to build upon and develop programs to assist
workers and communities that are negatively affected by trade.
The Administration has also worked to strengthen and extend the global trading system.
International cooperation is essential to realizing the potential gains from trade. Trade
agreements have reduced barriers to international commerce, and contributed to the
gains from trade. A system through which countries can resolve disputes can play an
important role in realizing these gains.
From the Council of Economic Advisors
https://georgewbush-whitehouse.archives.gov/cea/economic_report_20040210.html
2
Democrats Criticize Bush Over Job
Exports
By Edmund L. Andrews
February 11th, 2004
Democrats in Congress and on the campaign trail, citing remarks by a top White House
economic adviser, accused President Bush on Tuesday of encouraging companies to
export jobs overseas.
''The Bush administration said that sending American jobs overseas is a good thing for
America and good for the economy,'' Senator John Kerry of Massachusetts, the front-
runner for the Democratic presidential nomination, said in a statement released by his
campaign.
''They've delivered a double blow to America's workers -- three million ...
TRADE TRIALS AND TRIUMPHSMale SpeakerInternational tr.docxturveycharlyn
TRADE: TRIALS AND TRIUMPHS
Male Speaker
International trade restrictions. According to one study, 93% of economists think such restrictions are a bad
idea because they reduce economic welfare. They believe the trade is the way to produce more, better, and
cheaper stuff and services for us all. The phrase often used to justify trade is "comparative advantage," an idea
that comes up throughout economic says Northwestern Professor Robert Gordon.
Robert Gordon
The real way to talk about comparative advantage is to talk about everyday people, and how about the
example of a lawyer? A woman lawyer, very talented at law but also able to type twice as fast as her male
secretary and what should she do? Should she be doing the typing? No. She should be out winning trials and
winning law cases and that male secretary plotting along at half the speed should be doing the typing because
she probably makes ten times as much as he does.
Male Speaker
And if she is making ten times as much, it means that to the economy, the lawyering is worth ten times as
much as the typing. The typist has a comparative advantage in typing because he can make more that way
than as a lawyer, which without a law degree can make a dime at. The lawyer has an obvious comparative
advantage in lawyering because no one will pay her that much to type. So both parties are better off by
specializing and then trading the fruits of what they do. But if this is the way to go within our country's borders,
why is trade consistently discouraged across borders by the various forms of what is called "protectionism"?
Because countries all over the world are under pressure to protect their local companies and workers from
foreign competition. They do so in several standard ways.
By imposing quotas, a ceiling on the amount of something that can be imported from another country or
imposing tariffs, taxes on all imports coming into a country or instituting other non-tariff barriers like subsidies
to domestic industries so they can price their goods below foreign competitors. For example, the U.S. imposed
tariffs on corn brooms made in Mexico to hike their price and thus, discourage Americans from buying them.
Why? Because the jobs of corn broom workers like those in this Alabama factory were threatened by corn
broom workers in Mexico making one-sixth what these folks were.
Male Speaker
I would not wish to compete, not with the kind of way that the Mexicans are earning, you know, a dollar. I can
live off --
Male Speaker
The same holds true in loads of industries, from textiles to steel. Why did free trade President George W. Bush
slap at 30% import tax on billions of dollars worth of steel from abroad in 2002? To protect American
steelworkers who are losing their job because of cheaper foreign imports.
Dan DiMicco is CEO of Nucor Steel, a low-cost U.S. producer, which historically oppose protectionism, but
even his company had began to feel the ...
Jobs and Protectionism in the Stimulus Package Preside.docxchristiandean12115
Jobs and Protectionism in the Stimulus
Package
President Obama's spending bill promotes the use of
American goods and labor. Despite foreign and domestic
protests, the language is mainly rhetorical
Members of the Senate and the House hash out differences between the two versions of the
economic stimulus legislation at the U.S. Capitol on Feb. 11 Chip Somodevilla/Getty Images
By Moira Herbst
The $787 billion spending legislation being signed on Feb. 17 by President Barack Obama is
designed to jolt some life into a moribund economy. Already, though, provisions to use the
money to "buy American"—whether that means American iron, steel, or labor—is sparking a
debate about whether such rules in a global economy amount to protectionism.
Organized labor and small U.S. manufacturers won an amendment to the stimulus bill to ensure
that more materials used on construction and infrastructure are made in the U.S. Critics of the H-
1B visa program won tougher rules governing when banks that are bailed out by the Troubled
Assets Relief Program (TARP) can fill jobs with skilled immigrants.
The final language drew criticism from abroad, where editorials and government officials
warned it could run afoul of trade agreements. But both provisions are less stringent than earlier
versions had been, and neither is likely to have a radical effect on how stimulus spending takes
shape.
http://www.businessweek.com/bios/Moira_Herbst.htm
Opposition from Exporters
The clearest attempt to wall off foreign companies from U.S. spending came in a "Buy
American" provision. That rule requires that only U.S. iron, steel, and other manufactured goods
be used for public buildings and public works funded under the bill. However, it comes with
several key caveats. For one, the language states that the Buy American policy must not violate
U.S. obligations under existing international trade agreements. Nor does the rule apply if
American goods aren't available in sufficient quantities or if they'll increase the cost of the
overall project by more than 25%. Federal highway, transit, and airport projects are already
covered by similar Buy American requirements.
The battle over the provision had been contentious. On Feb. 3, 100 business groups and
companies—including the U.S. Chamber of Commerce, General Electric (GE), Caterpillar
(CAT), and other major construction, defense, and high-tech companies—wrote a letter to Senate
leaders warning that a far-reaching Buy American rule "will harm American workers and
companies across the entire U.S. economy, undermine U.S. global engagement, and result in
mirror-image trade restrictions abroad that would put at risk huge amounts of American exports."
But advocates of the provision—including the Alliance for American Manufacturing, a
partnership of manufacturing companies and the United Steelworkers union—said such rules are
needed to stem the tide of layoffs in th.
Insights into doing business in China from the Financial Times now of particular interest as Australia draws near to negotiating an FTA with its largest trading partner.
Understanding the US-China Trade Relationship Peachy Essay
The US-China Business Council (USCBC) is pleased to have commissioned this study by Oxford Economics on the overall impact of China on the US economy.
During last year’s election campaign, the negative impact of trade with China, such as estimates of jobs lost, received considerable attention. In most cases, the presented data fails to provide a balanced assessment that incorporates the positive effect of the commercial relationship with China. Presenting only the negative impact and ignoring the jobs created, lower inflation, and other benefits of trade with China can lead to policies based on incomplete or misleading information.
A report issued by the Obama White House on Jan. 11. The report contains a section on the economic boom being created by the Marcellus Shale and hydraulic fracturing, speaking in favorable terms of the benefits of shale gas.
The Tennessee Business Retention and Expansion Course is a one and a half day course which focuses on how to develop, implement and evaluate an effective retention and expansion program. Presentation from Laith Wardi, CEcD, President of ExecutivePulse,Inc.
Federal Reserve White Paper on ManufacturingDavid Crace
Resource document on the manufacturing industry over the last 20 years. Very insightful perspective, facts and figures on the impact of offshoring, efficiency gains, etc.
10 THE INTERNATIONAL ECONOMY WINTER 2014China UnderAt.docxaulasnilda
10 THE INTERNATIONAL ECONOMY WINTER 2014
China Under
Attack
On January 31, 2014, one of China’smany trust companies, the China CreditTrust, nearly went bankrupt and had tobe bailed out by unknown sources.Some say it was China’s LehmanBrothers moment. In late December2013, Foxconn, the Chinese assemblyfirm with 1.2 million Chinese workers,
announced its intention to build a production facility in the
United States. On December 5, 2013, China’s new aircraft car-
rier, the Liaoning, was sailing in the South China Sea when a
vessel from its carrier group came less than 1,400 feet from the
USS Cowpens, a Ticonderoga-class missile cruiser. The near-
collision was the result of an ever more apparent game of
“chicken” between the United States and China. The three seem-
ingly unrelated events may be individually important, but they
are symptomatic of changing dynamics affecting China’s inter-
action with the United States and the West more generally.
China’s competitiveness has been deeply eroded in recent
years. The old revenue and cash inflows China had enjoyed dis-
appeared when the financial crisis damaged consumption in the
industrialized world. Since then, Chinese workers have been
B Y K . P H I L I P P A M A L M G R E N
An economy amazingly
vulnerable to bad news.
Philippa Malmgren is the founder of DRPM Group. These ideas
are further explored in her upcoming book, Signals. She
previously served on the White House National Economic
Council in 2001 and 2002.
THE MAGAZINE OF INTERNATIONAL ECONOMIC POLICY
220 I Street, N.E., Suite 200
Washington, D.C. 20002
Phone: 202-861-0791 • Fax: 202-861-0790
www.international-economy.com
[email protected]
WINTER 2014 THE INTERNATIONAL ECONOMY 11
MALMGREN
hurt by both the deterioration of a powerful export engine
and the rapidly rising cost of living.
Chinese official data shows inflation is not too bad.
But the Chinese government wants to maintain the façade
that markets are functioning favorably and the GDP defla-
tor is small, ensuring high “real” growth rates. The actual
inflation rate faced by locals is far higher than the data
shows. Of course, some argue a gap exists in the United
States as well. The reality though, is that the prices of
energy and food have been high and rising rapidly in
recent years. Food and fuel account for 40 percent to 70
percent of a Chinese worker’s expenses. Consider the
price of beef, which, like most proteins, has kept hitting
all-time record highs in the last few years. Failure to pro-
vide the Chinese public with protein at a moderate price is
a recipe for serious social unrest. Oil may not seem expen-
sive in the West, but anything over $100 per barrel trans-
lates to fuel and other energy expenses high enough to
warrant moving production to the United States where
energy is increasingly cheap, leading to job losses in
China.
These pressures have generated demands for higher
pay. Wage demands for skilled Chinese workers are run-
ning at a 70 pe ...
The realities of the Trade War between the United States and China. This in depth analysis is here for you so you can be informed on current events especially as President Trump continues to attempt negotiations with China. See more and subscribe at colossuspolitics.com.
1. China Syndrome:
Area Companies See Threat, Opportunity from Economic Giant
Sunday, October 19, 2003
By Lisa Eckelbecker
SHREWSBURY-- The 17 workers at New England Molders Inc. lost a job to China in July. A big job.
Big enough to keep busy eight injection molding machines, the kind of equipment that turns out test tubes and
aerosol pump parts.
Claire B. Beauregard, president of privately held New England Molders , watched the manufacturing go
overseas, where the departing customer secured six to eight unskilled laborers who would toil away for 20
cents per hour on eight machines.
Her cost to have one to two skilled people run the machines in Shrewsbury? $14 per hour.
“I sometimes, with tongue in cheek, say, `Why did Nixon ever go there in 1972?'i' Mrs. Beauregard said.
Other Central Massachusetts manufacturers could wonder the same thing as China continues its emergence
as a controversial economic powerhouse. Some companies bemoan what they see as a loss of manufacturing
jobs to low-cost Chinese laborers, while others consider China a site to launch new businesses. Congress is
considering measures to restrict trade with China, and the Bush administration is pushing China to reform its
currency to address a growing trade gap with the United States.
For good or ill, China simply cannot be ignored.
“They've become a world powerhouse through manufacturing, no ifs, ands or buts about it,'' said John J.
Healy, director of Worcester's Manufacturing Advancement Center.
For Mrs. Beauregard, New England Molders and others concerned about U.S. economic relations with China,
trouble did not really explode with former President Nixon's remarkable trip to communist China and the
political rapprochement that followed.
What raises the ire of China critics is more recent U.S. government actions, including Congress' decision in
2000 to permanently normalize trade with China. That helped clear the path for China to join the World Trade
Organization in 2001 and ignited a debate over the fairness of free trade.
“Global competition shouldn't be a bad thing,'' Mrs. Beauregard said, “as long as it's a level playing field.''
In China's case, make that a very large playing field.
The country is home to nearly 1.29 billion people, about 744 million of them in the labor force.
Those numbers make China a potentially massive market for goods and services. But so far, China has shown
its power in how much it sells.
2. The country imported $295.3 billion in goods and products last year but rang up $325.6 billion in exports.
Its largest trading partner, the United States, imported $125.2 billion in Chinese goods last year. China, in turn,
bought just $22.1 billion in U.S. goods.
That produced a trade gap of $103 billion for the United States, the largest gap ever recorded with any country.
The imbalance has been similar in Massachusetts, according to the state and federal sources. Massachusetts
imports from China totaled $1.7 billion in 1999, but exports added up to just $331.7 million.
U.S. hunger for Chinese goods is also growing at a faster rate than U.S. sales to China. Between 1998 and
2002, the value of U.S. imports from China grew by 76 percent. U.S. exports to China over the same period
grew by just 56 percent.
More of those China-produced goods are more complex, too. Not only are Chinese workers cheaply turning
out parts, they are creating molds for components, producing the components and then assembling them into
larger items.
“They're industrializing at an incredible rate,'' said Paul F. Kennedy, president of Worcester-based Kennedy
Die Castings Inc., which operates joint ventures in China. “When those things leave this country, they don't
come back.''
No one knows how many jobs have been transferred to China, but one estimate suggests that about one-third
of the 2.7 million manufacturing jobs lost over the last three years in the United States may have gone
overseas.
China's influence in that process has been overwhelming, according to Joel A. Barkin, communications director
for U.S. Rep. Bernard Sanders, I-Vt. Mr. Sanders and Rep. Peter A. DeFazio, D-Ore., have proposed
legislation that would repeal China's permanent normal trade relations status.
“The first thing we have to do is figure out a way to solve the problem of U.S. manufacturing jobs being
hemorrhaged to China,'' he said. “Essentially when permanent normal trade relations passed in 2000, people
argued that this was going to be great for American workers, that this was going to be great for our trade deficit
and also that it would improve the human rights record of China, all of which did not happen.''
The criticisms against China break down into key areas: tariffs and nontariff barriers, production conditions and
currency.
Critics argue that the United States has dropped its tariffs, opening its markets to cheaply produced Chinese
goods and commodities, but that China has not honored World Trade Organization commitments to lower
barriers against U.S. goods and farm commodities or to allow U.S. banks, telecommunications and service
companies to compete for business.
George W. Shuster, the chairman, president and chief executive of textile manufacturer Cranston Print Works
Co., blames “free traitors,'' large retailers and Wall Street interests that he says value the money made off
cheap imports over American economic development.
“I actually want to have trade,'' Mr. Shuster said. “But what we call trade is not trade. Trade, in the dictionary, is
two-way. We're doing all the buying. They're doing all the selling. That's not trade.''
Cranston Print Works, which operates a plant in Webster, considers its competition with Chinese
manufacturers mixed. The 500-worker company buys canvases from China, then prints its own designs on the
fabric for sale.
But Mr. Shuster chafes under the blunt warning a congressman once gave him and a colleague when they set
out to talk to legislators about U.S. tariff policy.
3. “He said, `What are you going to do about campaign contributions? The enemy's out there raising money,'i''
Mr. Shuster said. “Congress should be doing the right thing, not what they're paid by somebody to do.''
Other manufacturers complain that free trade with China cannot be fair as long as China operates under wage,
labor, environmental and financial conditions vastly different from those in the United States.
One difference lies in banking. Four state-controlled banks dominate the banking system in China, accounting
for 86 percent of all Chinese bank assets. But years of propping up inefficient state-owned companies with
loans left Chinese banks with at least $213 billion in nonperforming loans in 2001. That was estimated at 25
percent of all Chinese loans.
In the United States, a business with high debt might restructure operations and lay off workers to pay down
loans. Banks might foreclose on borrowers or write off loans.
But the same cannot be easily done in China, where an estimated 10 million people join the labor force each
year and about half of all workers are employed by state-owned enterprises, according to the Federal Reserve
Bank of San Francisco.
Instead, government-controlled banks roll over the bad loans, keeping workers employed but extending their
own financial difficulties.
A result is that Chinese manufacturers face no real pressure to pay back loans that allow them to operate, said
Mr. Kennedy of Kennedy Die Castings. That gives them an advantage over U.S. competitors.
“You have this whole large sector of the manufacturing establishment that isn't low-cost, it's no-cost, because
they have no cost of debt,'' Mr. Kennedy said.
Under those conditions, some U.S. manufacturers argue, the Chinese are selling goods below production
costs.
John C. Stowe, president of Lutco Inc. in Worcester, a company that makes ball-bearing assemblies, said he
has seen Chinese products selling in the United States for the same price that Lutco would pay for raw
materials.
“Which means somebody's subsidizing something,'' he said. “There's a lot more to it than labor costs.''
A third point that rankles China critics is the country's currency, the yuan. The Chinese government has
pegged the currency to the dollar at a rate of about 8.28 yuan per dollar for the last nine years, a move that
keeps Chinese goods cheap in the United States.
Some economists believe that a free-floating yuan would appreciate 15 percent or more, which would make
Chinese goods more expensive here. President Bush is expected to discuss the issue with Chinese President
Hu Jintao at a coming Asia Pacific Economic Cooperation forum in Thailand.
A group of U.S. senators also recently urged Treasury Secretary John W. Snow to confront China about
“hoarding'' $345 billion in U.S. dollars in its reserves.
Not everyone agrees, however, that China represents a threat to the U.S. economy. Those who bash China,
said Al Cotton, spokesman for Clinton-based manufacturer Nypro Inc., “haven't made the effort to be part of
the global economy.''
Nypro operates 10 facilities at five sites and employs about 5,000 people, or about one-half of its global work
force, in China. But none of that would exist if Nypro did not have customers in Asia demanding that Nypro's
products, such as cell phone casings, be made nearby, Mr. Cotton said.
4. “A lot of them want operations to back them up in China,'' he said. “We make the plastic that they use to
present their technology. It's really that our customers are there and our customers are growing there.''
In addition, operations in China require management and oversight from the United States, Mr. Cotton said.
The employee-owned company is preparing to open a $10 million technical center in Clinton, and demand
around the world is creating the need for the research and engineering scheduled to take place in the new
center.
“Every time a cash register in China rings, somebody in Clinton has to write it down,'' Mr. Cotton said.
In other words, coping with China means doing business with China for many manufacturers. Cranston Print
Works buys raw materials from China. Kennedy Die Castings makes and sells components in China through
joint ventures with Chinese businesses.
Lutco tries to overcome the pull of China and other foreign competitors by focusing on niche markets, making
goods that require specialized skills to produce and emphasizing their quick turnaround time and nearness to
North American customers.
“We have seen some customers who went overseas and came back swearing they'd never do it again,'' Mr.
Stowe said. “But you could never plan your survival on the chance they'll screw up over there. Plenty of times
they do it right.''
Mrs. Beauregard of New England Molders has taken her frustrations over China into the political realm. She
has joined coalitions of manufacturers and scrutinized the positions of presidential candidates, noting that U.S.
Sens. John F. Kerry, D-Mass., and Joseph I. Lieberman, D-Conn., never even voted last summer on free trade
agreements covering Singapore and Chile.
She also asserts that the public is awakening to China's impact on the United States. Public pressure, she
said, will be needed to force Congress to reconsider trade relations with China. China's advantages, she
thinks, simply cannot endure.
“It's obvious to everyone, even the Chinese, although it won't be admitted by them, that this won't last forever,''
she said.
ART: PHOTO; CHARTS
PHOTOG: (PHOTO) T&G Staff/PAULA FERAZZI SWIFT
CUTLINE: (PHOTO) Xuan Mai, a lead inspector, inspects urinanalysis test tubes at New England Molders Inc.
in Shrewsbury. (CAHRT 1) Manufacturing Week (CHART 2) Trading partners
Caption: PHOTO; CHARTS (PHOTO) T&G Staff/PAULA FERAZZI SWIFT (PHOTO) Xuan Mai, a lead
inspector, inspects urinanalysis test tubes at New England Molders Inc. in Shrewsbury. (CAHRT 1)
Manufacturing Week (CHART 2) Trading partners