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Thursday, August 16, 2007

The Hole Dug All the Way to China

American corporations and the U.S. government have used the 'free trade' mantra to justify a myriad of dubious decisions that have benefited foreign governments and helped U.S. companies cut costs. With the latest news that toys made in China are lead-laden, it is becoming clear that all of these years we have been digging ourselves into a hole, and that hole leads all the way to China.

First it was the news that our beloved pets were being poisoned to death by pet food that originated in China. Then we discovered that some of our toothpaste had a Chinese connection, and that certain brands contained poison harmful to humans.

And now we are told that toys made in China are tainted with lead, a substance that has proven highly toxic to children.

The present scenario is the result of years of a misguided trade policy. We have essentially allowed foreign governments to take over a large share of the American market in the name of 'lower prices.' For example, the American toy industry is nearly non-existent. Mattel makes most of its toys using the slave labor in China.

At the same time we have allowed countries such as China to impose highly restrictive tariffs on American exports. China has taken the billions it has made off of these tariffs and promptly used that money against the U.S. by building up its military arsenal.

Republican Presidential contender Duncan Hunter was one of the first to sound the alarm about this unfair trade advantage, along with the outsourcing of American jobs overseas.

Mr. Hunter was perhaps the first to propose a 'fair trade' policy toward China and other such nations, rather than 'free trade.' Free trade is great as long as it is fair. When free trade ceases to be fair, it is no longer free.

Countries that impose tariffs on American goods should face having the same thing done to their goods when they come to the U.S. This is the only fair and reasonable way to do business.

Many have suggested that in response to the string of dangers arising from Chinese products, we should focus on buying American. However, this is much more difficult to do than in the past.

For example, Mattel is an American company, but most of its toys are made in China. Honda is a foreign company but most of the cars it sells in the U.S. are made in the U.S. Ford, GM, and Chrysler are American companies but use parts and materials made overseas.

The U.S. government and the large corporations have only themselves to blame for the present predicament. Perhaps the only method in the short term of dealing with the problem is to implement the provisions of fair trade, place tariffs on all Chinese goods, and demand that American companies stop using Chinese materials until that country cleans up its act.

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