patrick.net

Nobody else has $18 Trillion Dollars and 330M Person Consumer Market in one Country.

We have all the power.

It's not just the money, but the trade imbalances -they sell us FAR MORE annually than purchase from U.S.

$300 to $400 billion USD annual trade deficits with Mexico

$800 billion USD annual trade deficits with China

AllTruth says

It's not just the money, but the trade imbalances -they sell us FAR MORE annually than purchase from U.S.

$300 to $400 billion USD annual trade deficits with Mexico

$800 billion USD annual trade deficits with China

Why do Rep/Con/Teas allow this?

As is, we send plans and materials to china and they produce it for us. Then they copy the product, and produce it for themselves in a neighboring factory.
If we did as the EU has done and require an equal trade balance, the Chinese would be REQUIRED to purchase American products instead of merely copying them. This would ensure that factories in America continue to have business, jobs won't all be exported, and send some of the wealth back across the Pacific. That's a very easy change to make that not only has precedence with the EU, but would enhance trade with Asia rather than detract from it.

China also requires U.S. companies to have a Chinese joint venture partner if the U.S. company wants to produce in and/or sell to the Chinese Market.

This is an open secret as a way to steal U.S. corporate (and even government, as U.S. companies have proprietary tech that they use in conjunction with U.S. Gov't) technology for the Chinese JV Partners.

It's ridiculous that any American Executive Branch or Legislative Branch, Dem or Repub, has allowed this to happen, let alone persist since the early 90s.

All I know is that the EU has the least leverage. The eurocrats are still in denial.

8e6e0 says

China also requires U.S. companies to have a Chinese joint venture partner if the U.S. company wants to produce in and/or sell to the Chinese Market.

Quigley is deplorable says

Chinese would be REQUIRED to purchase American products instead of merely copying them. This would ensure that factories in America continue to have business, jobs won't all be exported, and send some of the wealth back across the Pacific.

Yup, despite endless subsidy, China got Boeing to build a plant in China. And there will be more outsourcing.

Loren Thompson ,

Contributor

I write about national security, especially its business dimensions.

Facing severe pressure from state-subsidized foreign competitors and the end of federal export financing, Boeing BA +0.92% has decided to throw in the towel. After a hundred years of producing its commercial aircraft exclusively in the U.S., the nation’s largest exporter will build its first offshore aircraft plant in China.

The new plant will be a joint venture with a Chinese entity to install interiors and paint exteriors on 737 airliners, Boeing’s popular single-aisle jetliner that competes with the Airbus A320. China’s official Xinhua news agency reported yesterday the company has signed a huge deal for 300 737s with three Chinese companies, besting the record 250-plane deal that Airbus received for its A320 last month from low-cost Indian carrier IndiGo. The news agency report coincided with the visit of Chinese president Xi Jinping to Seattle, the home base for Boeing’s commercial aircraft operations.

Company insiders say the precise location of the new plant in China has not yet been decided, but it appears the uncertain fate of the U.S. Export-Import Bank figured in the decision to establish offshore production. (Disclosure: Boeing is a contributor to my think tank.) All of the 737s airframes destined for China will still be built in Renton, Wash., at the plane’s main assembly facility, and then finished at the new plant. But the relationship with China is likely to grow over time, because China, like Brazil, Canada, France, Germany, Japan and every other industrialized country (except now the U.S.) assists plane exporters in securing financing.

Interiors today, the airframes and engines in a decade. And you'll see 100% Chinese made commercial planes and 4-engine AEWs, ASW patrol Planes, and bombers emerge around then, too.

Funny how no "Free Trade is the ONLY Option!" people criticize China for insisting that US Exporters move their plants to China.

More:

Certainly, as my Forbes.com colleague Loren Thompson pointed out, Boeing’s decision was a stunning break with tradition. He wrote: “After a hundred years of producing its commercial aircraft exclusively in the U.S., the nation’s largest exporter will build its first offshore aircraft plant in China.”

The key thing here is that in being required to produce in China, Boeing will be forced to transfer many of its most valuable production secrets to Chinese soil. They can be expected then to migrate rapidly to Comac, a state-owned, Shanghai-based aerospace company which is targeting the passenger jet business, a business hitherto owned by the duopoly of Boeing and Toulouse-based Airbus.