Vox Political on America Raising Tariffs Against Chinese Steel

Mike over at Vox Political has posted a piece from the Mirror about the US slapping a massive protection barrier of 522% on Chinese steel to stop it flooding the market and destroying their domestic steel industries. However, the unions are impatient with Brussels and the British government, which are currently dragging their heels. At the moment the EU tariff placed on Chinese manufactured goods is only 16%.

Mike comments:

Neoliberals would have you believe that any increase in the tariff on Chinese steel is protectionism that would harm the economy in the long run.

But this is nonsense.

It seems likely that China is subsidising its steel industry in order to flood the world markets with cheap product. The aim would be to cripple the profitability – and therefore the viability – of non-Chinese steelmakers, and shut them down.

This would leave China alone in the market and able to set whatever price it wanted.

Mike’s exactly right, and to be fair, the British diplomatic corps know it, and have known it for a very long time. It’s only David Cameron and his cabinet of overpaid, over-privileged numbskulls and parasites that don’t.

Years ago I used to work with a former diplomat. I can remember talking to him once about China, its emergence as an industrial power, and the lingering, bitter resentment that still exists in the Middle Kingdom about the way we conquered and ruled it with the other European powers in the 19th century. Others I have spoken to about the situation told me that they believed that China would deliberately set out to destroy this country economically. I told my colleague about this, and he agreed. They would, he said, first set about destroying the Japanese. And then they would come after us. They would do it thoroughly and very politely.

The Chinese government’s subsidization of their steel industry, and their determination to flood the global market and so close everyone else’s industries down, seems to me to confirm this amply. The conversation took place about a decade ago, if not more.

So as I said, this has been known and forecast for a very, very long time. But of course, it’s given no account by Cameron and his fellows, because they’ve grown up with the self-serving economic dogma that manufacturing industry in the West is somehow passé. Besides, it creates a tightly organised, skilled workforce than when really annoyed and well-led, can bring down Tory governments, like the miners and Ted Heath.

And professional selfishness is also involved. Cameron’s a PR man, and most of the Tories come from the financial sector. They have no interest or experience of manufacturing, and so are quite happy to let the manufacturing sector of this country be destroyed. Because no matter how many British workers are put out work, no matter how badly the overall economy is damaged, they can always get another job in another bank or investment house.

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2 Responses to “Vox Political on America Raising Tariffs Against Chinese Steel”

  1. Michelle Says:

    Quite a proposition, imagine the repercussions, even without the opium wars, if all those countries the UK previously ‘colonised’ were of similar mind. I guess this grotesque boast from David Cameron would be meaningless: “We are the fifth largest economy in the world. The biggest defence player in Europe with one of the most of extensive and influential diplomatic networks on the planet.”

    Ref: https://www.gov.uk/government/speeches/prime-ministers-statement-on-eu-renegotiation-3-february-2016

  2. vondreassen Says:

    Reblogged this on vondreassen and commented:
    THOSE CUNNING CHINESE….

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