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the complexities of U.S.-China trade...

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    DakotaRog started this thread.
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    the complexities of U.S.-China trade...

    I'm reading a book for work called U.S.-China Trade issues and Patterns (2013). It appears that these are a series that come out about every 2 years or so. I found the overview interesting in that trade with China isn't exactly just balck & white but it has a lot of stuff mixed together (somethings bad for Americans, somethings good). This data is for the decade 2001-2011.

    U.S. exports to China have grown nearly 5x in value over that decade but are "dwarfed by the surge of Chinese imports" thus resulting in a growing bilateral trade deficit.

    Most of the U.S. exports to China are of non-manufactured goods (ag products-escpecailly soybeans) and more recently metal ores and other minerals, coal, and petroleum gases. Leading U.S. manufactured goods to China were motor vehicles, semiconductor manufacturing equipment, and aircraft.

    China is the leading importer of U.S. "cast-offs" such as scrap metal, waster paper, etc. U.S. exports of iron and steel waste & scrap between 2005 and 2001 increased from $1.6 billion to $2.6 billion. China also makes raw steel from imported western Austrailan iron ore.

    A dramatic rise in imports of Chinese made manufactured goods to the U.S. and "significant decrease" in U.S. manufactured goods to China.



    "A steady move up the value chain for Chinese imports" esepcially computers and consumer electronics.

    So, I guess whether we like it or not, we're probably economically tied to them for most cases for a long time coming...
    Last edited by DakotaRog; 10-24-2014 at 12:23 PM.

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    I wrote a paper in college in 1996 or 1997 about how China was to be the next global dominator.. and surpassing the U.S. My professor said something to the effect of "Well written paper.. but doubtful" I got an "A" on the paper because of how I am able to make my case and back it up... but I have to say I wish I wasn't correct.

    If you want to see how much we are reliant.. just look at scrap.. if China has low demand for our steel (as is the current situation) guess what- steel prices take a dive. When they have higher demand for steel- our steel prices (and thus scrap prices) rise. Although they are not the only buyer of our raw materials- they make up enough of the percentage that they basically are the tipping point for supply and demand and thus prices.
    Last edited by sledge; 10-24-2014 at 12:29 PM.
    I'm so into scrapping.. When my Steel Toe Boots Wear out, I cut the Steel out of them and recycle the Toe!

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    Quote Originally Posted by sledge View Post
    I wrote a paper in college in 1996 or 1997 about how China was to be the next global dominator.. and surpassing the U.S. My professor said something to the effect of "Well written paper.. but doubtful" I got an "A" on the paper because of how I am able to make my case and back it up... but I have to say I wish I wasn't correct.

    If you want to see how much we are reliant.. just look at scrap.. if China has low demand for our steel (as is the current situation) guess what- steel prices take a dive. When they have higher demand for steel- our steel prices (and thus scrap prices) rise. Although they are not the only buyer of our raw materials- they make up enough of the percentage that they basically are the tipping point for supply and demand and thus prices.

    working for a company that imports directly from overseas, largely china (some taiwan, korea, japan, canada and mexico, but probably 75% from China) I see the market fluctuations on a weekly basis. And it goes hand in hand with the scrap pricing as well. Scrap prices tend to take a dive right before "Chinese New Year" and then spike back up about 4-6 weeks later. And since there is a slow boat to account for, everything tends to happen 6-8 weeks before. Making it seem like there is no relation between the two.

    If china needs steel or copper in August, the price will rise in June. Then if they don't need as much in October, the prices will fall in August when they are in the middle of using what they ordered from us in June.
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    Quote Originally Posted by phred59 View Post
    working for a company that imports directly from overseas, largely china (some taiwan, korea, japan, canada and mexico, but probably 75% from China) I see the market fluctuations on a weekly basis. And it goes hand in hand with the scrap pricing as well. Scrap prices tend to take a dive right before "Chinese New Year" and then spike back up about 4-6 weeks later. And since there is a slow boat to account for, everything tends to happen 6-8 weeks before. Making it seem like there is no relation between the two.

    If china needs steel or copper in August, the price will rise in June. Then if they don't need as much in October, the prices will fall in August when they are in the middle of using what they ordered from us in June.
    Nailed it! Well stated phred!

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    DakotaRog started this thread.
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    I hadn't read this when I posted earlier but they had a sub-chapter on "waste and scrap".

    After China joined the wto (World Trade organization) in 2001, the value of U.S. "waste" and scrap to China increased 15x from 740 million in 2000 to 11.5 billion (non-adjusted for inflation) in 2011.

    Out of the top 10 non-manufactured U.S. exports to China in 2009, #s 4-7 were scrap & waste: ferrous waste & scrap--2.51 billion, paper waste & scrpa--1.57 billion, Cu waste & scrap--1.36 billion, and Al waste & scrap--1.26 billion.

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    I watched the National geographic 'scrapmetal at Gershows yard' programme a few days ago.

    The Chinese were buying 'auto fluff' the shred that comes off the car crusher and is about the size of a beer bottle cap.
    And sorting it by Hand!
    Imagine that, hundreds of workers picking out beer bottle caps from mush...
    "It helps with our job situation" was the Chinese chaps quote. Wow, watta job..

    And Gershow was happy to be able to sell his plastic car bumpers after all, but when he told the Chinese buyer, "Two containers a month". The chap looked like he was expecting two every day.

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    DakotaRog started this thread.
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    One of the biggest concerns of the Chinese gov is keeping "people busy". You know if people aren't constantly working they may have idle time to think about things, I don't know, like maybe like full voting rights democracy!! I've never been there but know people at work who have. I remember one of them telling me about all the people standing around in larger Chinese restaurants waiting to do something. Drop a fork (or a chopstick) on the floor, another is being presented to you about the time you start bending down to pick the fallen one up. The demographics are changing (I'll post more about that after I go get my book) where the Chinese might not be so needy to find employment for everyone but right now that appears to be the case.

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    The US regulatory laws makes in imposable to profitably process scrap metals any more.
    Shred it, send it to China, wait for fished product to arrive.

    (( The US only has 7 steal smelters left - the last lead refiner closed last year - 3 copper smelters left ))

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  17. #9
    DakotaRog started this thread.
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    Took a while for me to get back to this thread to post about Chnese demographics. We tend to think that China has an endless supply of people but even a nation with a billion and couple hundred million can get themselves sideways, especially when the heavy hand of the government tells you how many kids to have. The Chinese gov has had a policy for 30+ years of one child per family. Although not totally effective, especialy in the rural areas, this policy has skewed the population cohorts. China, along with the developed world, is getting older and young people to enter the work force, especially in manufacturing, is decreasing.

    The important two labor cohorts of people in their 20s will decrease in size. Between 2016 and 2026 the Chinese population in their 20s will decrease by about a quarter, 200 million to 150 million. The 20-24 cohort it will come quicker and be more drastic, a drop of nearly 50% from 125 million down to 68. So "the abundance of young, inexpensive labor is soon to be history". If we're still here in 20-30 years, we may see Chinese companies do what U.S., Euro, and Japnaense corporation have done, seek out other regions were labor is cheaper. Although this may be easier said than done. Where are the regions that now have a lot of kids and high birthrates? Sub-Sharan Africia, the Middle East-SW Asia, and Andean S. America/Central America. Most of these places don't have the needed infrasturture and/or culture for large scale manufacturing, although the infrastruture may come if enough money is pumped in from Big Buck Chucks companies looking for cheap bodies in factories. Or maybe SE Asia will be the new China. Manufcaturing is already there in several of those nations...
    Last edited by DakotaRog; 10-30-2014 at 01:29 PM.

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    Excellent post rog. Demographics is a fascinating topic. These age cohorts are the reason for many many market swings and is especially important in housing markets.
    Supply and demand.
    Markets are down now. Lots of supply it would seem. I got anywhere from 130 for appliances to 200 net ton Shred appliances mixed in this week.
    Demographics can explain why many things are the way they are, you only have to be able to make the connection which may be difficult to realize at first.

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    Quote Originally Posted by DakotaRog View Post
    Took a while for me to get back to this thread to post about Chnese demographics. We tend to think that China has an endless supply of people but even a nation with a billion and couple hundred million can get themselves sideways, especially when the heavy hand of the government tells you how many kids to have. The Chinese gov has had a policy for 30+ years of one child per family. Although not totally effective, especialy in the rural areas, this policy has skewed the population cohorts. China, along with the developed world, is getting older and young people to enter the work force, especially in manufacturing, is decreasing.
    .
    There's a much greater concern here. The root cause of almost every major global problem we're facing today is exponential human population growth. With wise policy we could gently ease our population back down to sustainable levels within a few generations.

    The alternative is to do nothing and allow nature to run it's course. The natural forces of disease,famine, and war will kick in and restore the balance.

    The Chinese way of doing things isn't very nice but it's preferable to the alternative.

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  22. #12
    DakotaRog started this thread.
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    Scrappah- I taught 4 semesters of Intro to Human Geography between 2004-2008. The data in the books was all about circa 2000. I don't think you can call the growth of the global pop "exponential" any more. Most of the pops of countries with advanced economies are flatlining or decreasing. The U.S. grows in pop mostly through immigration and natural increases of these folks 1st and 2nd born generations here. Thomas Malthus was saying the human pop was going to crash because the inability to feed itself 200 years ago already. It hasn't happened yet. The key is can we maintain our type of lifestyle on less?? As scrappers, I think we're part of the solution

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    The key is can we maintain our type of lifestyle on less?? As scrappers, I think we're part of the solution
    I'd just like to know what kind of volume us regular everyday scrappers have kept out of the landfills. I agree with that. ^^
    P & M Recycling - Specializing in E-Waste Recycling.
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    I feel bad for guys growing up in China. The one kid per family thing coupled with the fact that everyone wants a boy means very few women to marry which will also cause a nosedive in the population and more importantly civil unrest. Any Chinese nations with money wants to leave that place (smog doesn't help either).

    The Chinese US trade only works because of money rigging and debt. Trade will collapse sooner or later.

    Many years ago Japanese products were in the same boat as Chinese, inferior and dangerous crap. Japanese got their act together and made some nice cars and high end electronics. Give it some time and China will quit making cheap products for Apple and will produce their own high end brands cutting US middle men out (they just need to work on marketing). Even now China is too expensive to make some cheap items and they are shifting manufacturing to other Asian countries or bringing production back into the US (fully automated).

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    @ unknownk
    LINK

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    Quote Originally Posted by unknownk View Post
    I feel bad for guys growing up in China. The one kid per family thing coupled with the fact that everyone wants a boy means very few women to marry which will also cause a nosedive in the population and more importantly civil unrest. Any Chinese nations with money wants to leave that place (smog doesn't help either).

    The Chinese US trade only works because of money rigging and debt. Trade will collapse sooner or later.

    Many years ago Japanese products were in the same boat as Chinese, inferior and dangerous crap. Japanese got their act together and made some nice cars and high end electronics. Give it some time and China will quit making cheap products for Apple and will produce their own high end brands cutting US middle men out (they just need to work on marketing). Even now China is too expensive to make some cheap items and they are shifting manufacturing to other Asian countries or bringing production back into the US (fully automated).
    The only reason they are bringing production back to the US is because with minimal staff (mostly automated) it keeps the payroll expense down, they don't have to pay any export tax. Product is already here. Then they can compete with lead times and eliminate the overseas shipping cost. But 2 things. It does not create jobs (not enough to mean anything) and the profits don't stay here.

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    Quote Originally Posted by DakotaRog View Post
    Scrappah- I taught 4 semesters of Intro to Human Geography between 2004-2008. The data in the books was all about circa 2000. I don't think you can call the growth of the global pop "exponential" any more. Most of the pops of countries with advanced economies are flatlining or decreasing. The U.S. grows in pop mostly through immigration and natural increases of these folks 1st and 2nd born generations here. Thomas Malthus was saying the human pop was going to crash because the inability to feed itself 200 years ago already. It hasn't happened yet. The key is can we maintain our type of lifestyle on less?? As scrappers, I think we're part of the solution
    Ummm ... i see what you're saying. It's just kind of freaky. I was born in 1960 and in the short time span that i've been around the global population has roughly doubled from somewhere around 3.5 to over 7 billion !

    I've witnessed the changes too !

    I live on an island off the coast of Maine. Our economy is mostly comprised of fishing & tourism. When my father was growing up here during the 1930's we used to harvest at least thirty kinds of creatures from the sea. As time went on, and global demand for our seafood products grew, we overtaxed the resource and ruined it. We're down to only a handful of things that we can fish for now.

    If demand had been in balance with what the ocean could provide we would have had a sustainable future.

    There are far too many hungry mouths to feed.

    ===================

    Think of the global ecosystem as only being able to (sustainably) support so many humans. The big question is what is that number ? How many people are too many ?

    Are you noticing any signs that resources are dwindling ? Is competition for resources intensifying ? Are these resources getting harder to extract ? Is the global economy showing any signs of distress ? How about the global environment ?

    There's no excuse for wanton waste and as scrappers we are making an important contribution but it's only a stop gap. It's not addressing the core problem.

    We may need to start thinking in terms of reducing the global population to more sustainable levels.

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    We feed people now by using high grade fertilizers (nitrates, oil), massive mechanization and bio-engineered foods. Go look at what an ear of corn or a chicken used to look like in 1950 and compare it to what you eat now. We eat all kinds of fish these days that would never have been caught 50 years ago because we destroyed all the fisheries in the ocean.

    An example: Orange Roughy:
    Save the Deep Sea: Where have all the Orange Roughy gone?

    They don't reproduce until they are 30 years old, can live to 150 years , and are pretty much gone already.

    The way chickens, cows, and pigs are raised we could have an epidemic and a whole food chain will go bye bye (sucks now for bacon lovers).

    What will happen is prices for food will continue to go up and poor people will continue to starve to death. Problem is there are a lot more poor people then their used to be.

    Resources are dwindling which is why prices have gone up and people are looking for other materials to do the job. Once oil production gets tapped out we are in for a major implosion of the population. Steaming oil out of shale/sand and fracking shows me we have run out of economical oil and gas deposits.

  30. #19
    DakotaRog started this thread.
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    Too tired and too much stuff left to do tonight to get into much more. Hopefully have fur to gather and skin tomorrow and maybe the boys and I will roll a couple of turkeys as well. I think things are more complex and mixed than you guys have indicated. There are species that have been hammered and there are species that a flourishing because they adapt well to various human land uses. People in advanced economies could produce a lot of their own food if they wanted to but choose not do although trends are changing (the growing trend of backyard or garage chickens). People are both wasteful and resourceful. The future is not totally known. Once genies are out the bottle, the knowledge is there and a lot of people aren't satisfied in giving up their advancements. We'll see...

    P.S. I didn't have the textbooks I used when I taught my geography class home here but I did find an interesting graph of global pop change since 1700. I would argue we are in the middle scenario now (I;m not sure which scenarios these guys are talking about, there a number of them out there).

    https://www.google.com/search?q=grap...il%3B600%3B400

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    Newer EPA regulations, land use restrictions, and high taxes are putting farmers out of business ...
    As of when I posted this, the average age of a farmer int e US is 57 .

    Lets say I was younger than I am now, and wanted to start a farm ... first I would have to buy land , which is not cheap .
    Than I would have to buy equipment, which is not cheap .

    After paying all the bank loans, insurance, legal fees, and property taxes it would be impossible to make any kind of profit ... LINK
    So there is no motivation for any one to take up farming .

    Corporate farms can make money because they can process thousands of acres of land.


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