U.S. needs Europe to slow China’s innovation rate, Raimondo
So basically the new guy that innovates and works hard needs to be slowed down. He’s moving that broom too fast! He’s making everyone else look bad. This is usually typical behaviour of a Union. Port of LA has 70 ships parked off the coast waiting for the government Union workers to unload the ships. Last month it was 40 ships.
Gina Raimondo is now in charge of Trade for the Biden Administration. She was the former Governor of Rhode Island. Rhode Island is at the economic bottom of every state in the United States and has been the bottom anchor for decades. So Biden chooses Raimondo who knows nothing about Trade to lead US Global trade and to face down China, the biggest manufacturer and trader in the history of the world. This isn’t even a B league choice. This is a minor leaguer.
Raimondo claims the US and its allies need to get together and slow up China’s rapid Innovation. In the next breath she complains that China is blocking Boeing Sales. Is she on the Boeing Payroll now?
This is the first admission that the US policy is the Nancy Kerrigan Kneecapping strategy. In spite of Biden’s endless entreaties about competition, the US simply wants to slow down Chinese “rapid innovation.” How exactly is this going to be accomplished? She never says of course; she never says anything.
She talks in vague terms about US Allies working together against China. Then she spins off into the Trump Biden Talking points. She claims China violates IP, doesn’t want a level playing field etc. But never anything concrete. And there are simply no facts that support this at present. The last IP complaint over China was in 2008. It was over a patent infringement by a Chinese firm for a French headlamp switch. The US joined the suit. The result is the Chinese firm paid the royalty then redesigned the switch. The switch is no longer used anywhere in the world.
What Happened to Joe Biden’s American First protectionism?
The allies apparently didn’t like the idea of sacrificing their economies to keep the US on top. Especially since the collective European Economy is larger than the US Economy. Germany in particular has soured on sacrificing their economic prospects by being a US poodle.
Might recall Biden forcing US businesses to breach their contracts with NORDSTREAM II. That is not going to help US firms find work in Europe in the future. The reckless whim to break contracts committing Force Majeure, was exclusively a Trump aspect but Biden has adopted the same egregious interference with contract. And he know owns Trump’s anti-American Tariffs and Trump’s failed Trade war. Why did Biden meddle in this? He, as Trump wanted Germany to buy US LNG delivered by Ship at three times the cost of Nordstream NG.
For Germany and Russia, the good news is that the Nordstream II pipeline was completed September 10th, 2021, without US contractors.
Last week Biden stiffed the French Poodle. Biden interfered with the French $66 Billion dollar contract with Australia to provide submarines. France promptly pulled their US and Australian ambassadors.
Also last week the ever articulate Nancy Pelosi said this about Huawei:
We do have to develop our own 5G and be advanced in so much technology so that we’re not saying, ‘Well, they’re the best and the cheapest and so we all have to be enslaved by the Chinese in terms of their control of the data.
So Ms Pelosi, if China steals your IP, how come they have 5G and working on 6G and the US doesn’t have 5G? Trumpers and the Dems don’t seem to have an answer for this. But I do. Protectionism doesn’t work. Pelosi applauded the British for dumping Huawei 5G plans. Incidentally, Britain’s economy is self-destructing. They desperately need 5G.
There is not a single incidence of any evidence that Huawei has any backdoors in their equipment or packages and moves data to China. This is the US paranoia that has no basis in fact. Rather it is a form of FUTURE PARANOIA.
The US has no actual 5G and even the few experiments are not linked to any significant network capacity. US Vendors play the same game they did with 3G and 4G. US “5G” is actually 4G. But marketing forces like ATT call it 5Ge. It’s 4G. Why do they lie? Because consumers are stupid.
How far behind China is the US in 5G?
At least 2 years which in the tech world is an eternity. And for a complete rollout the US would need to increase antenna density by 40x says Deloitte & Touche. A full rollout will take five years or more. Worse there is no uniformity to the present 4G imposters. Thus the entire purpose of 5G which is network capacity is a nullity.
Raimondo also accused China of Blocking Boeing Sales:
I think I can answer that accusation easily. China has not yet approved the Boeing 737 Max. You might recall that aircraft. It is the one that fell out of the sky on three occasions killing nearly 1000 passengers as the computer system literally fought the pilots trying to control the aircraft.
Unlike the old DC3 Goonybird that had a 16:1 glide ratio and has been known to land itself, the 737 Max is a rock that can’t remain airborne without computer assistance.
China may also see some better opportunity buying Airbus. China would actually like to reduce its trade with the US and expand trade in Europe.
This is not BOEING’s fault; it’s Biden’s fault.
Boeings CEO has repeatedly warned the Biden Administration not to continue to mix politics with trade, warning that China, the largest buyer of aircraft could just as easily buy Airbus aircraft.
China has their own Narrow body C919
US export laws have delayed C919 parts. More Nancy Kerrigan Kneecapping… but the US wants China to Buy more Boeing Aircraft.
COMAC’s C919 was absent the Shanghai Air Show. US and French suppliers are facing delays in getting permission to send parts over to China for work on the C919. None of the parts are banned but the Trump Biden red tape has fouled the entire US Supply Chain.
The C919 engines are. LEAP Engines from CFM International, which is a joint venture between GE in the US and Safran Aircraft Engines of France. Trump tried but failed to block the engine sales; the French refused. CFM engines are used by every major commercial aircraft builder in the world and have been doing business in China for over 30 years.
Beautifully designed Cockpit of the C919 is more roomy than the Boeing 737 Cockpit.
The C919 project started in 2008. China moves slowly and carefully. They want to develop expertise. This aircraft is not about new technology. While similar in size and speed to the Boeing 737 MAX and the Airbus a320 Neo, its range is 25% less. Then again the price tag is about half that of the Boeing and Neo. Some feel it is just a vanity project.
Nevertheless be aware that without Chinese Orders for the Boeing 737 MAX, Boeing can’t fund production. China may be learning that Manufacturing prowess may not be as important as being the deepest pocket buyers in the world.
Finally… this is the woman that said Biden’s Steel Tariffs Work… Tariffs stupidly brought back by Biden even after Trump threw in the towel as a total disaster.
The prices of sheet steel in the US is 300% higher than Mexico and 400% higher than China. It is commodity steel, nothing fancy. The US only makes hot and cold rolled steel and a little rebar, nothing else. They make no heavy steel. The US doesn’t have a single blast furnace.
Ford looked at the Tariffs a few years ago and moved all their auto-making plants to Mexico. With Biden they thought the insane Trade War would end and Tariffs removed. Ford lasted about 6 months of Biden and has now moved their Truck plant from Detroit to Mexico, leaving the UAW behind to visit their angry bar stools. And that GINA is how well Tariffs on Steel work.
Don’t expect much from Biden that is good for business anywhere. And Gina Raimondo was just another Biden diversity pick. When it comes to Economies, Rhode Island owns the bottom.