I was watching the Colbert Report tonight. You can view it here:
The CEO of a small American manufacturing unit which makes marbles
states that to make marbles, they must pay $0.21/lb for ENERGY ALONE.
However, the Chinese are able to manufacture the same marbles and ship
them to the USA for $0.28/lb. This CEO claims that the Chinese
government is subsidizing these marbles unfairly.
I have quite a few questions regarding this, and I'm very confused
about a lot of things.
1. The Chinese central government is subsidizing this business. This
is *NOT* sustainable, is it?
2. What benefits do the Chinese see in selling at below cost, when
this costs a lot of money? The Chinese companies are basically
forfeiting profits, and the Chinese government is subsidizing a money-
3. Has there been examples of the Americans exporting items at below
cost to other nations?
- posted 9 years ago