Two important regulatory developments are converging in the United States and the United Kingdom at the same time for the ill-fated COVID-19 investigational vaccines. In America, the Centers for Disease Control has logged more grim milestones as of June 4, 2021, with...
We Are Becoming a Colony of China
Once upon a time, in an America long, long ago, I learned the definition of a colony in 7th-grade geography class. A colony sends raw materials to the mother country—ore, wood, oil, crops. The mother country sends finished goods back to the colony: appliances, wood furniture, plastic items, packaged foods, and tools.
Where do we see this today? Right here in the USA, once a colony of Great Britain. We now send oil, plastic pellets, and raw foods to China. China sends us cheap appliances, cheap wood furniture, cheap plastic items, and cheap clothing. We are beginning to meet the textbook definition of a colony. Economically, we are transforming into a colony of China. Remember that Obama said he would “fundamentally transform America?” China is helping.
Notice that this happened gradually. That’s how the progressive left, socialists, and the worldwide communists achieve their goals. Gradually. The strategy is that when change happens very slowly, you won’t notice it.
Raw Materials Sent to China, Manufactured Products Sent Back to the USA
Trading Economics reports that three of the top ten exports to China in 2020 were food crops, petroleum, and plastics (in the form of pellets made from petroleum). All raw materials. The same source reports that in 2020, 20% of our imports were from China, the most from any country. Mexico was second at 14%. The top six imports from China were electrical/electronic equipment, machinery and nuclear reactors, toys and games, furniture and lighting, textile articles, and plastics. Since China has far fewer petroleum sources than the US, I assume that the plastics are finished goods made from the plastic pellets we shipped to them.
Note: plastics are made from petroleum. China ranks 14th in petroleum reserves. China has proven reserves equivalent to 5.4 times its annual consumption. This means that, without imports, there would be about 5 years of oil left (at current consumption levels and excluding unproven reserves). So, they import the plastic pellets made from our petroleum and export back to us the plastic finished products such as dishware, toys, and tools. This is the classic colony/mother country economic relationship.
Notice that the top two categories that China exports to us, electrical/electronic equipment and machinery, are highly engineered products. As you will learn below, that engineering expertise was stolen from the USA. When we send finished products to China, they reverse engineer them and steal the technology we developed. Then China uses our technology to make cheap knock-offs to sell back to us.
How Did This Happen?
There are three components to making a product: raw material, labor, and know-how. Know-how is the most important. Know-how is composed of innovation, research and development, and engineering. This includes the engineering necessary to build the factory and machine tools that make the product.
The easiest example is the silicon chip which powers computers, cell phones, the internet, and even automobiles. Silica is beach sand. Cheap and abundant. Yet the silicon chip is ounce per ounce thousands of times more expensive than gold. Why so expensive? The years of research and development and the engineering that went into the integrated circuit etched onto the chip make it expensive. The brainwork that produces know-how is expensive. Paying a team of R&D scientists and engineers for years is expensive. The brainwork of those scientists and engineers is in the silicon chip.
China Steals Our Know-How and Sells It Back to Us
For the past thirty years, China lured manufacturers into making their products in China. How? Cheap labor and currency manipulation to make the yuan cheaper than the dollar. The catch was that American companies had to send their blueprints, molds, machine tools, and engineering specifications to the Chinese sub-contractors in order to manufacture there. These elements of know-how took years and much expense for the American companies and entrepreneurs to develop.
The Chinese then stole this expensive engineering know-how. Without having to pay for their own research and development, they can make products cheaper. Cheap Chinese products crowded higher-priced American products off the market.
As an example, microwaves, an American invention, are no longer made in America. With no competition from microwaves made in the USA, the Chinese now peddle cheap junk microwaves that barely last 18 months. The last American-made microwave oven I owned lasted over fifteen years.
The most glaring example of Chinese theft of US engineering is their new stealth fighter plane that looks exactly like the American F-35. Through cyber-theft, they stole the classified specifications for this expensive aircraft. When you don’t have to pay for the research and development, you can make anything cheaper than the original inventors in the U.S.
Invasion of the Brain Snatchers?
China now colonizes our universities in order to steal our own research and development before we have a chance to bring it to market ourselves. They openly fund American university research and use the results for their products. They fund it with the profits from previously stolen American engineering know-how. Profits made when we Americans bought a cheaper version of a product engineered by Americans.
Like a bad Sci-Fi film, we have financed the invaders who steal the know-how of our creative minds. We are the producers of a reality show called “Invasion of the Brain Snatchers.”
How do we Reverse the Theft and Brain Snatching?
1. Buy American when you can.
2. If you run a business, look for ways to reduce your prices other than outsourcing to the Chinese. Lean manufacturing techniques are a good start. Lean was invented in America during WWII.
When you outsource to the Chinese, you are giving them the key to your intellectual tool shed. Don’t be surprised when you later see a cheaper copy of your product on the market—a cheaper copy made with the intellectual property that you paid dearly for.
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