Plant Services - May 2008 - (Page 13) KEN SChNEPf THE PS FILES Them or us Who’s to blame for the faults in our trade policy? • Honor labor and environmental laws ou’re likely to hear more than you ever wanted to know • Operate production that is compliant. about China in the next couple of months during the Chinese President Hu Jintao isn’t likely to change much run-up to the Beijing 2008 Olympic Games, which about the way his country’s industry operates anytime soon, begin in August (http://en.beijing2008.cn/). Whether or not so Paul says the burden of change is on us. “In their interest, you’re a fan of the Olympics, the fact that the games are bewe’re doing nothing to stop them, to tell them that their ing held in China will be a great educational opportunity for behavior is bad,” he explains. “We need to negotiate much Americans, who tend to know very little about this closed more strongly and threaten sanctions unless you [China] society. It can only benefit us to understand how one out of five do XYZ. It’s reasonable to expect that they would comply. people in the world live – as Chinese citizens. There hasn’t been enough pressure on the The news about China that makes it into our [Chinese] government. We are in a real crisis media is often negative: Contaminated Hepahere; we’re at a critical point.” rin, lethal dog food and tainted toys are hardly Contaminated There’s an inherent danger in doing busiconsidered hallmarks of great public relations. Heparin, lethal ness with people or countries whose practices And the Alliance for American Manufacturdog food and deviate far from your own. That’s the quaning (AAM) says you can add cheating to the tainted toys dary democratic nations, including our own, short list of grievances against our nation’s are facing as they weigh whether to boycott third-largest trading partner. are hardly In a conference call just before the Indiana considered the the Beijing Olympics because of human rights abuses. Do you participate in the Olympics presidential primary, the AAM presented a hallmarks of under onus in the hope of providing the Chivariety of ideas about China’s effect on Amerigreat public nese with a glimpse of the outside world and can manufacturing, and the steel industry in the openness of democracy, or do you penalize particular. Scott Paul, AAM’s executive direcrelations. their government’s bad behavior in Tibet by tor and a Rensselaer, Ind., native, emphasizes not showing up? It’s the classic Catch-22. that China is a big deal. The AAM estimates It’s not much different from what happened in 2000, when that Indiana has lost 110,000 jobs in the past seven years, a China was admitted to the World Trade Organization and heavy blow to a state whose economy is manufacturing-based trade barriers were dramatically reduced. We opened up our and dependent on its voluminous steel production. Some of markets willingly to a Communist country in the hope that the state’s job losses derive from flawed trade policies, Paul capitalism, in some form, would catch on with the Chinese. says. Now, the AAM and Hoosier state steel workers want It has to a degree, but at what cost? to know what the three presidential candidates plan to do, if Terry Straub, senior vice president for government affairs anything, to address this challenge. and public policy for U.S. Steel, says the United States has a Paul admits that China is difficult to explain in a 30-secfailed trade policy by almost any measure. “We [the steel inond sound bite, but that the trade relationship our country dustry] are a barometer of what will happen to other industries has with it is in dire need of political – and the public’s – atin the future,” he says. “There is rampant cheating going on tention. “When we grant access to our market, we want recin the system. We are playing by one set of rules, and China iprocity,” he says. “Their country should play by the rules.” is playing by another set of rules, and that’s a zero-sum game. Paul says the AAM and the manufacturers it represents That is a trade policy that will not be able to sustain itself.” are asking for a level playing field, in the form of the folListen to the entire AAM conference call in the form of a podlowing actions: cast at www.plantservices.com /articles/2008/082.html. • Don’t manipulate currency • Don’t subsidize industries • Don’t dump products in U.S. markets E-mail Managing Editor Lisa Towers at ltowers@putman.net. May 2008 www.PLANTSERVICES.com 13 Y http://en.beijing2008.cn/ http://www.plantservices.com/articles/2008/082.html http://www.PLANTSERVICES.com
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