China Ripoffs Cost U.S. $48 billion and 923,000 Jobs in 2009

  • (First my comment: every economic war is linked with ideological war. If in long term China reaches its goal to dominate the planet’s economy, they automatically can impose their way for human rights. Yes, at the end a concern for all of us. I hope all next generations can live a different reality than the Chinese way of human right, how stupid ever our westener elites may behave).
  • (Read also: Chinese Piracy Costing Millions of U.S. Jobs, on Economy in Crisis, by Dustin Ensinger, June 5, 2011).

Published on The Economic Populist, by Robert Oak, June 5, 2011.

How Stupid Can America Be? Pretty damn stupid according to a new report by the United States International Trade Commission USITC.  

In 2009, the United States lost $48 billion dollars and 923,000 jobs due to brazen theft by China. Yet, companies routinely think the great answer is to manufacture in China, due to lower costs. How can getting your product and design ripped off, with a knock-off, at least 30% cheaper than your own product appearing on store shelves, help a company increase their profit margins?

Such is the stupidity of American business today. The extent of intellectual property theft in China is overwhelming. If China enforced intellectual property rights to the level of the United States, we could gain 2.1 million jobs. That’s how widespread and brazen intellectual property theft in China is. The USITC estimates what would happen to the U.S. economy if just intellectual property rights were enforced in China:

  • $21.4 billion increase in U.S. exports of goods and services
  • $87.8 billion increase in sales to U.S. majority-owned affiliates in China
  • Potential 2.1 million increase in net U.S. employment under conditions of prolonged and high unemployment
  • Some reallocations within the U.S. workforce towards more IP-intensive services sector jobs

As U.S. and other manufacturers moved their manufacturing operations abroad to Asia and other regions, opportunities for counterfeiting increased from the standpoint of both the production process and the import supply chain.

In other words, those companies who funneled billions in new investment dollars to China, moved their manufacturing and business there, are much more likely to be ripped off. Others heavily targeted are those manufacturers with high value trademarks, such as Prada and Nike … //

… Beyond this report, China has a so called indigenous innovation policy. This amounts to demanding intellectual property be developed by Chinese engineers and scientists and America can….go do something to itself. Not only is China ripping off America, they are demanding that intellectual property recognized in China be developed … by the Chinese.

How buy American and hire America is that? Unfortunately the wrong country is enacting it.

There is quite a bit of testimony in the report.

What is astounding is the number of so called experts in pure denial over the loss of intellectual property and corresponding revenues in China. One literally tried to claim it’s all good because somehow enabling theft fosters Democracy. Good God. (full text).

Link: Robert Oak’s Blog.

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