Made in China products will cost more.

[GoFlyKiteNow]

All commodity prices, particularly Iron, Copper, Oil , cotton,
wood, have seen their prices soar as the US dollar value
is brought down by the Feds and US treasury, with some
help from Japan, UK and EU.

The result is simple.

China's imported raw material input costs spike higher.
Which means the manufacturing costs are bound to rise dramatically.

It is a situation on which China has no control unlike wage costs
which it can keep down by force and pressure on its population.

Indirect hidden subsidy bills will cost China much more than now.

Therefore, expect soon a higher costs "Made in China" products
in the near future. Some products may cost as much as they
would if made in the USA.

Thus the US strategy of low value dollar will work to the benefit of USA.

 

[zuoom]

erm, wouldn't it backfire for USA?

since they import tonnes of stuff from China. and with a lower exchange rate against the RMB... they stand to suffer more with the higher material cost in RMB.

unless we talking about USA going to export alot more when her dollar is low. so much so that the net export will far exceed import?

 

[GoFlyKiteNow]

erm, wouldn't it backfire for USA?

since they import tonnes of stuff from China. and with a lower exchange rate against the RMB... they stand to suffer more with the higher material cost in RMB.

unless we talking about USA going to export alot more when her dollar is low. so much so that the net export will far exceed import?

The huge imports from China of the past was driven by easy credit and a stronger dollar that finally culminated in the global financial crisis. since that scenario is unlikely to be repeated. Hence imports into USA will be more restrained and lower.

Besides, the USA does not import critical items which it cannot do without.
So, there is not much of a difficulty there. IMO.

 

[Cestbon]

China product would be 10% more epensive in average but still much much cheaper that US/Europe product. The whole world will still by made in China even up by 10%.
We all consumer are fuck by the US/EU pressing yuan $$ up. US and EU consumer will also have to pay the price their debt will escalate even faster. Becasue of the inflation all have to cut cost and buy more China made product to adjust the inflation.
Just like China siad US domestic problem cannot blame China. US have to manage thier own problem. Thy have to cut budget and reduce pay by as much as 50% but this will not happen. Whole US will be riot. So easy way out is pointing finger/taichi problem to others.
Why ASEAN never complaint China currency have problem. Most Asia/Latin/Africa country don't have problem with what US try to con people said that RMB is undervalue.
Ony Ang Moh so called 1st world country have the china currency problem.
Is just because they cannot manage their own debt balme other. Just like asking Bank/Ah Long for a loan latter cannot repay back. Blame the bank/ah long for loan they money. No one force them to borrow. They the one asking for the loan.
FUCK the US and EU.

 

[no_faith]

....Is just because they cannot manage their own debt balme other. Just like asking Bank/Ah Long for a loan latter cannot repay back. Blame the bank/ah long for loan they money. No one force them to borrow. They the one asking for the loan.
FUCK the US and EU.

i feel dey gonna wake up from their dream.
dey taking loans becuz they are screw by their own breed yet dey nvr see it?

sidetrack a bit...pls dun regard these white trash as better breed of humans.

 

[GoFlyKiteNow]

China product would be 10% more epensive in average but still much much cheaper that US/Europe product. The whole world will still by made in China even up by 10%.
We all consumer are fuck by the US/EU pressing yuan $$ up. US and EU consumer will also have to pay the price their debt will escalate even faster. Becasue of the inflation all have to cut cost and buy more China made product to adjust the inflation.
Just like China siad US domestic problem cannot blame China. US have to manage thier own problem. Thy have to cut budget and reduce pay by as much as 50% but this will not happen. Whole US will be riot. So easy way out is pointing finger/taichi problem to others.
Why ASEAN never complaint China currency have problem. Most Asia/Latin/Africa country don't have problem with what US try to con people said that RMB is undervalue.
Ony Ang Moh so called 1st world country have the china currency problem.
Is just because they cannot manage their own debt balme other. Just like asking Bank/Ah Long for a loan latter cannot repay back. Blame the bank/ah long for loan they money. No one force them to borrow. They the one asking for the loan.
FUCK the US and EU.

Price of raw materials like Copper, Tin, Iron, Coal, rubber etc have
gone up between 25 and 50 % and still going up in dollar terms
as the US dollar drops in value. So how can this be translated into
only 10 % increase in the China finished product ?

The USA is not waiting for China to revalue its currency.
It is already doing that, by devaluing its own currency.

 

[no_faith]

these whites are fucking cbk.
i feel dey are trying to threaten the world.

i die and im going to bring u all.
:oIo::oIo::oIo:

 

[Ilovelamb]

The americans screw up and the world foot the bills. The main street money transfer to wall street to feed these bankers fat fat:oIo::oIo::oIo:

 

[Cestbon]

Price of raw materials like Copper, Tin, Iron, Coal, rubber etc have
gone up between 25 and 50 % and still going up in dollar terms
as the US dollar drops in value. So how can this be translated into
only 10 % increase in the China finished product ?

The USA is not waiting for China to revalue its currency.
It is already doing that, by devaluing its own currency.

What i meant is labor cost increase by 10%.
If they raw material up 40% make no different because cost are the same for the whole world. So is the salary that make the different.
Eg.

Manufacturer US buying raw material US$1K add labor/manufacturing cost (total overhead) is $2K. So total cost is US$3K

Manufacturing China same raw material at same cost US$1K but the labor /manufacturing cost only US$500. So total only US$1.5k still cheaper than US.
Even is manufacturing cost add 10% that only US$50. Total is US$1550 still cheaper than US$3k is manufacturing in US.

So will it make big different is RMB up 10%.

 

[theDoors]

these whites are fucking cbk.
i feel dey are trying to threaten the world.

i die and im going to bring u all.
:oIo::oIo::oIo:

That's the whole idea.

The easier solution, raised wages of the Chinese worker to create domestic consumption.

Why the CCP doesn't want to do that, is the worry that with broad based middle class, the middle class Chinese will demand for political reform.

 

[longbow]

US cannot compete with the Chinese even with a 10% appreciation of Yuan. In fact as it is, no country can compete with the Chinese at 10% Yuan.

Was reading Economist and average medical insurance for a family of 4 is US$18K a year. That is just for medical insurance!!! Chinese family can live on US$18K a year!

A higher Yuan will make other 3rd world countries more competitive. But the poor infrastructure - as we can see in india, cambodia, Vietnam - is an added cost to goods. So when you factor in everything, China will remain factory floor to the world.

 

[GoFlyKiteNow]

What i meant is labor cost increase by 10%.
If they raw material up 40% make no different because cost are the same for the whole world. So is the salary that make the different.
Eg.

Manufacturer US buying raw material US$1K add labor/manufacturing cost (total overhead) is $2K. So total cost is US$3K

Manufacturing China same raw material at same cost US$1K but the labor /manufacturing cost only US$500. So total only US$1.5k still cheaper than US.
Even is manufacturing cost add 10% that only US$50. Total is US$1550 still cheaper than US$3k is manufacturing in US.

So will it make big different is RMB up 10%.

Take for example.. CARS. A big value item.
Iron ore price is 40 % higher when China import it from Australia, which it does. Import Oil needed for energy production is 25 % higher. So is the case for copper, Aluminum and rubber.

Hence the USA or Europe landed cost of the car will be atleast 25% higher
compared to last year, adding higher shipping costs etc. Which makes the car made in Brazil, Mexico cheaper, even though it pays its workers 40% higher wages than what the China worker gets in China. Brazil has all the raw materials in abundance.

The same cost factors apply for other major China exports to USA, such as steel pipes, metal products etc.

 

[Cestbon]

Take for example.. CARS. A big value item.
Iron ore price is 40 % higher when China import it from Australia, which it does. Import Oil needed for energy production is 25 % higher. So is the case for copper, Aluminum and rubber.

Hence the USA or Europe landed cost of the car will be atleast 25% higher
compared to last year, adding higher shipping costs etc. Which makes the car made in Brazil, Mexico cheaper, even though it pays its workers 40% higher wages than what the China worker gets in China. Brazil has all the raw materials in abundance.

The same cost factors apply for other major China exports to USA, such as steel pipes, metal products etc.

You mess up. If material cost up 40% for car made in China so do the car make in US also up 40%.
If China buy iron from Australia cost US$1k so do the US buyer.
We talking about all material cost are the same for all buyer in free market.
So the only different is labor cost and overhead cost for manufacturer in China and US.
Even China currency up 20%. They will have more purchasing power meaning they can buy more petroleum/gas on the same amount of RMB. Gainer will be those have alot of fuel/mineral/raw material sell to China.
Eg. China can buy more/extra 20% of oil with the same amount of money from Arab/Brazil/rubber/iron/........ So manufacturing cost using oil and gas will be cheaper. Meaning they can buy more raw material at cheaper price and can also pass down to customer when selling in RMB.

 

[Sperminator]

First & Foremost... Made in China Products ARE ALREADY INCREASING IN PRICE.

It will just be a matter of time, within months, the END USER MARKET feels the price increase.

The first group of people to receive the shock are IMPORTERS of China Products.

This will propagate down the channels till the End Users... at least by 3 to 5% for now...

With USA printing fiat dollars at will, they don't even have to care about their importation from China, since they CONTROL the MONETARY POLICY of USD.

Based on some circulation of news saying that Obama administration will be injecting more bail out funds this coming November, and based on the current Financial System Rules of USA (for every USD 1 created, = BANKS can LOAN OUT USD 9) It is not difficult to imagine, what will happen by November.

USA devaluation of USD serve to reduce their sovereign debts of the world. China would be affected the most, since it has most of USA's T-Bills.

When USA succeeded in forcing YUAN value to go up say, 30%, isn't it the same as saying, 30% of USA's debt to China is reduced?

On top of that, with inflated USD, I suspect the debt reduced is even more.

The entire financial system is truly a joke, non-functional, and based on greed. The world that we live today is really functioning on Monopoly Money if you think about it.

USD, the most powerful product the world have seen, printed from (cotton) paper, in exchange for true resources from poorer nations, give out loans from world bank, making the poorer nations (with natural resources) even poorer, and force selling their natural resources at cheaper price...

This is colonization in a different form, using USD as a political tool.

USA's action will not go down the history books well with China... and whatever they do now is not going to bring back jobs to their already 15% or more unemployment rate country.

Preventing foreclosures of more than 1 million homes based on the subprime crisis is just delaying the inevitable...

finding scapegoats to be blamed for the subprime crisis would not be enough.

USA is going down economically... likewise, Europe. (With exception of Germany)

USA & EUROPE's GOLDEN AGE is finally coming to an end...

Their 400 years of plundering the world, colonialism, stealing, politicking, warring, all in the name of resources...

The ASIAN GOLDEN AGE started... and CHINA will have the strongest political power in this coming century... The world's business language will be Chinese from decades to come. 来来来，大家开始讲华语！

The arrogance of the west is reaping the karmic debt it created... 善有善报。。。 恶有恶报。。。 阿弥陀佛。。。

 

[GoFlyKiteNow]

You mess up. If material cost up 40% for car made in China so do the car make in US also up 40%..

Read once more. I said Brazil. Made in Brazil or Mexico.
Who have the raw material.
And their existing labor cost disadvantage with China will be
offset by the increased cost of imported raw material input in China.

Thus their products will be imported into USA as a competitive
alternative replacement to China made products.

 

[GoFlyKiteNow]

The ASIAN GOLDEN AGE started... and CHINA will have the strongest political power in this coming century... The world's business language will be Chinese from decades to come. 来来来，大家开始讲华语！

The arrogance of the west is reaping the karmic debt it created... 善有善报。。。 恶有恶报。。。 阿弥陀佛。。。
----

Prophecies..Prophecies..prophecies..about doom and gloom in the west.
Have been making the rounds since 1960 s.
Cheers.

 

[annexa]

Stupid ang mors. China products are cheap not only because of Yuan or subsidies. China products are cheap because it is a fucking FREE MARKET economy where everyone can copy anyone and start producing! The ultimate American dream. Free market.

And the main point is, China has economies of scale. Even if Japan and Europe buy exclusively from America, the 3 economies combined cannot generate 1.4 billion customers.

Dumb shits.

 

[Cestbon]

Read once more. I said Brazil. Made in Brazil or Mexico.
Who have the raw material.
And their existing labor cost disadvantage with China will be
offset by the increased cost of imported raw material input in China.

Thus their products will be imported into USA as a competitive
alternative replacement to China made products.

If RMB value up. The product from Brazil/Mexico will be more competitive but they are lack of technology.
Even if Brazill and Mexico manage to compete. The loser will be China. But US still need to buy cheaper product from outside Brazil/Mexico because they(US) cannot compete mange to reduce cost in their own country.
In the end US will fire at Brazil/Mexico because of unfair trade. So US is problem not solve only transfer budget deficit to another country. In the end debt will forever increase in US.
So yuan/RMB increase will not solve US problem.
So How do the RMB up will save US from financial problem. The only way is reduce debt by cutting budget, benefit, salary............in US. Increase other country currency will not save US.

 

[GoFlyKiteNow]

If RMB value up. The product from Brazil/Mexico will be more competitive but they are lack of technology.

Hmmm... are you sure ?

Brazil , Mexico and Chile are in the leading edge of industrial technology.

 

[mayliewwan]

You forgot ...relatively cheap oil. Looks like local experts have forgotten 2008 when price of oil hit around $150/barrel and lots of ships were idle because transportation cost were prohibitive. The perfect storm...RMB goes up, oil prices goes into triple digits

The huge imports from China of the past was driven by easy credit and a stronger dollar that finally culminated in the global financial crisis. since that scenario is unlikely to be repeated. Hence imports into USA will be more restrained and lower.

Besides, the USA does not import critical items which it cannot do without.
So, there is not much of a difficulty there. IMO.