Wednesday, April 4, 2018

Simple Tariff

There's no doubt that some of the rules imposed by the Chinese government requiring in-country partners for access to markets result in the transfer of certain technology.

Its the very point of the program.

To the extent this expertise is stolen and then use to compete with the original company might violate certain provisions of those agreements which seem like a civil matter.

Companies eager for access to the vast Chinese consumer market were easy victims of these deals and they should have realized what they were getting themselves into.

I think they did.

I could certainly see us prohibiting any products here that infringe on copyrights or patents, but the real issue is that these products are sold in China.

That would require the Chinese court system to stop them and that is unlikely.

Imposing tariffs that end up costing consumers isn't really much of a solution.

Even worse they impose tariffs that hurt our producers.

The trade deficit with China and many other countries is to a large extent the result of our great prosperity in comparison to most of the world.

Other countries like China and India, among others, are simply cheaper places to produce goods because they have much lower labor costs.

Tariffs aren't going to change that.

They will just increase the cost of a lot of products and reduce our exports as the retaliatory tariffs hurt our producers.

Its all more complex than that, but we aren't dealing well with complexity in this country now-a-days.

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