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Basic question on the Chinese Gov. subsidizing their manufacturing companies

I was watching the Colbert Report tonight. You can view it here:

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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- losing enterprise.
  3. Has there been examples of the Americans exporting items at below cost to other nations?
Reply to
2.7182818284590...
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2.7182818284590... wrote

Dangerous business...

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How stunningly hi tech.

Then he should set fire to himself in Tianmen Square. That'll teach them.

How dare you ?

True.

You dont know that. The most you know is that he claims it is.

Yes it is.

You dont know that that is happening.

Its unlikely that the manufacture of marbles does cost a lot of money.

Nope.

You dont know that the chinese manufacturers of marbles are losing money.

other nations?

Yep. Heaps of them. More commonly with agriculture, but also in quite a few other areas as well.

Have a look at claims about dumping sometime.

Reply to
Rod Speed

In sci.econ 2.7182818284590... wrote: [...]

When ewe come to the cul de sac at the end of a winding little road far beyond the reach of agricultural subsidies or newspapers, you have probably found the charming little village of Bad Azzumptions.

Reply to
kym
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2.7182818284590...

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