Do as I say, not as I do

I am not a China apologist. I know first hand how uneven the playing field is here for foreign companies in many industries. I agree with many critics on issues from barriers to market entry to individual freedoms. I think that the artificial valuation of the RMB not only hurts foreign economies but it also hurts the Chinese economy. The inflation of the RMB against foreign currency hurts individual Chinese factories and entire industries by allowing them to complete at an artificial advantage. That advantage will eventually be taken away, sometimes rather abruptly as WTO violations are taken to court.But the calls by the US for a Change in Chinese State policy to “preserve” American (manufacturing) jobs or to level the playing fields because it’s unfair to American’s is hypocrisy of the worst kind.Name one country on the planet whose domestic policies are not geared specifically to support (at the cost of other countries) their own domestic market?! Similarly, US and Chinese (and all other) foreign policies are designed to promote individual domestic interests abroad.Make no mistakes, China makes the same stupid calls for the US to ‘recognize Chinese national interests’ when considering trade policies. But that’s the dance of politics—howls of mistreatment appease the masses at home and do little to affect the real negotiations happening elsewhere, in closed government offices.The recent change in US policy concerning the status of China in some markets (paper) is a great example of these stupid “whose side are you really on” kind of foreign policy. Newly classified, China is no longer a developing economy and therefore subject to the full weight of the anti-dumping and other restraints of their WTO membership. I had a business associate call me and talk about the impact that the tariffs with have on this industry—up to 12% duty levies on imported Chinese paper. That not only makes them “competitive” with the US domestic market, it effectively blows them out of the water.On the surface, the purpose here, it seems, is not to balance trade but indeed to protect a few industries that otherwise can’t compete. But wait! What about all the other US companies in related industries that are importing from China and will now take a 12% hit?! Surely the lager market of associated goods outweighs protection of one industry (indeed on the complaints of one lobbying group from Ohio).And when this new classification starts being applied to other industries? Yup, the consumer is the one who’s going to get hurt.I suggest that the WTO start regulating stupidity—both the Chinese and US governments are dumping toxic amounts.