China Moving Steel Production Offshore to Avoid Tariffs

Countries changed from GNP to GDP to reflect the idea that nations were not people, but geographic spaces on a map. Under GNP, a Japanese factory in America is adding to Japan's GNP. Under GDP, the Japanese factory in America is adding to U.S. GDP. The way things are going, with nation states breaking down from above and below, a return to GNP is possible. For now though, governments look at GDP, and that means if China moves it's steel factories offshore, it can export to its heart's content.

Reuters: China looks overseas in bid to slim down bloated steel sector
As part of efforts to ease domestic steel and coal overcapacity, widely blamed for triggering a global industry crisis, China said it will do more to help its firms shift capacity overseas while keeping tight control on adding new capacity at home.
No production cuts, only a relocation of production cuts. If GNP were the standard, this would not be possible.
It was unclear whether this signals government encouragement for more coal and steel exports from China, which has been widely blamed for dumping its excess steel on world markets, depressing prices and threatening thousands of jobs. Beijing says it has done what it can on overcapacity, and the criticism is "lazy protectionism."
Our basic conception of the nation and the nation-state may well not survive the coming changes.

No comments:

Post a Comment