03/14/17

Trade & Unemployment: My Interview with Long Island Business News

I am definitely not the type of people who like to draw a lot of public attention. However, it is time for me to share what I know about about international trade and to explain why trade is more than an opportunity than a tread for our country and the world.

My interview with Long Island Business News was printed in the article on Feb 3rd. titled Heated US-Mexico talks fuel tensions for LI businesses.  It is a mixed feeling to see my picture printed in the newspaper, especially side by side with the two Presidents. In this interview, I mainly discussed the wrong perception for international trade, especially the relationship between trading and unemployment. The followings are my quotes in the article:

” ‘Protectionism never worked for trading.’ She said, referring to the process of restraining trade between countries through such methods as tariffs and other means. Earlier tariffs, she pointed out, on steel and even the sneaker industry did not keep manufacturing jobs in the United States.”

“What we need is not a trade war, we need an open discussion to see how both countries can benefit.”

“Countries should trade on their strength. The U.S. strength is to produce financial services, innovative high-tech products, green energy products, etc. On Long Island, we export a lot of for the aviation and biotech industry. That should be out focus- not labor-intensive manufacturing job.”

“One outcome of NAFTA is that it helps improve the economy of Mexico, that enables Mexicans to afford to buy U.S. products. Nations’s improved economy boosts its standard of living, and reduces the number of Mexicans coming to the United States to find work.”

“As for jobs that were relocated abroad, don’t focus on brining those job back. Instead, provide training to those workers so that they have news skills and place then in other industries. We have unfilled manufacturing jobs, and we don’t have the skilled workers.”

“The focus should be on technology and innovative industries. How can we continue to be the leader of the world economy without those new industries? There is a perception that job loss from trade. But 80 percent of job loss today is from technology changes,  automation, and computerization.”

Thanks to the newspaper of Long Island Business News, especially the reporter Adina Genn, to allow me sharing my thoughts with the local community.

US-Mexico Talks Fuel Tensions for LI Businesses-page-001

 

 

 

10/4/10

Preface: A Flat but Complicated World

First of all, I am so sorry for not being available to write the business blog for a while. So what have I being doing recently?

My PhD study in Marketing and International Business has started in August so I have been adjusted myself to get used to this challenging while intriguing student life. Very different from the learning in my MBA, which is quite practical for a business professional, the PhD learning is quite theoretical while beneficial for my future research. I am also glad for my choice of moving my concentration from supply chain management to international marketing and business. With my interest in international trading and global cultural, this transition provides me a broader platform to fulfill my career goal to comprehend international conflicts and to promote global conversation and fair trading.

As a Chinese origin, I of course will pay more attention to the growth of Chinese economy and its relationship with other nations. Recent frictions between Chinese and U.S. over Chinese currency appreciation and penalty tariffs against each other draw my attention. As an advocate of fair trading, I hate to see this kind of political game between nations which only hurt businesses and consumers as a result, especially between two important trading partners. However, there are too many misconceptions and misleading information regarding the root causes of job loss in American manufacturing, China obviously became an easy target to blame and be used as a scheme for political goals.

There are also much focus on the growth of China and many articles have discussed this new challenge to China. After decades of leapfrog growth, China is facing significant challenge to remain its double-digit annual GDP growth. A very recent HBR blog Will China’s Growth Slow Over the Next Decade by Liu Shengjun points out there are four dividends behind the growth miracle: population, reform, opening and resource. Facing the diminishing return of those dividends, Mr. Liu recommends the following consideration for China to create new dividends:

  • Eliminate discrimination against private enterprises.
  • Further reform state-operated enterprises
  • Promote innovation

Those recommendations are well analyzed and right to the point. However they may not be easy for the Chinese government to make such huge turnaround in the near future. Corruption at all levels of central and local governments will not allow such reform to be easy because many people in power will lose their advantage of authorization and grey income. To encourage innovation, China needs to first fight against the challenge or habit of plagiarism and copyright infringement, and establish a stronger IP protection law. Otherwise, the innovations by the enterprises are not able to be protected thus discouraging their investment in R&D. Overall, China needs a political reform in order to create those dividends. Right now, I do not see such push from the central government.

What will happen among nations and how will China and the U.S. can grow together? I do not know yet. We are now living in a flat but quite complicated world. I hope my future studies will soon bring me more knowledge to solve those puzzles regarding global trade issues and challenges. And of course, I wish to see my future research contributing to a “flatter world”.  I will keep everyone posted!