{"id":11874,"date":"2018-04-15T01:44:57","date_gmt":"2018-04-15T01:44:57","guid":{"rendered":"http:\/\/www.lifeandnews.com\/articles\/?p=11874"},"modified":"2018-04-16T01:51:17","modified_gmt":"2018-04-16T01:51:17","slug":"how-chinese-products-went-from-cheap-and-cheerful-to-weapons-in-us-trade-war","status":"publish","type":"post","link":"https:\/\/www.lifeandnews.com\/articles\/how-chinese-products-went-from-cheap-and-cheerful-to-weapons-in-us-trade-war\/","title":{"rendered":"How Chinese products went from cheap and cheerful to weapons in US trade war"},"content":{"rendered":"

Qing Shan Ding<\/a>, University of Huddersfield<\/a><\/em><\/span><\/p>\n

Tensions are escalating between China and the US over trade. The Chinese government has announced retaliatory measures on a range of American products including cars and some American agriculture products<\/a> after the US listed 1,333 Chinese products to be hit by punitive tariffs of 25%<\/a>.<\/p>\n

Yet a trade war does not make economic sense for either side. Bilateral trade between the US and China was worth about US$711 billion in 2017<\/a> and Boeing\u2019s single deal with China signed during Donald Trump\u2019s visit to Beijing in 2016 was worth about US$37 billion<\/a> alone. <\/p>\n

The jobs and livelihoods at risk are huge. So why is there no particular desire, especially from Trump, to ease the tension and find a new solution?<\/p>\n

There has been much talk about the US trade deficit with China and allegations that China steals US intellectual property. But the answer could lie in US fears of the Chinese government\u2019s \u201cMade in China 2025\u201d<\/a> initiative and how it signals the growing threat of China as an economic rival. That the official US Trade Representative\u2019s recent investigation into Chinese trade practices mentioned the Made in China 2025 initiative more than 100 times<\/a>, suggests this is the case.<\/p>\n

Image problems<\/h2>\n

Made in China 2025 was launched by the Chinese government in 2015 to upgrade the country\u2019s manufacturing capabilities. It is a plan to transform what China produces from a low-cost, labour-intensive model to advanced and smart manufacturing. Certain key industries<\/a> such as aerospace, robotics and high-tech medical equipment have been prioritised. The hope is that China will gradually match developed countries\u2019 manufacturing capabilities and become industry leaders. <\/p>\n

A lot of the products from these key industries, such as industrial robots, aviation and aerospace equipment, new energy and power supplies and advanced rail machinery were all included in the tariff target list published by the US Trade Representative<\/a>. So it would seem that the current situation is not simply a trade issue aimed to reduce America\u2019s trade deficit with China. Instead, it is likely targeted at the future competition China will pose.<\/p>\n

\n \"\"
\n Made in China 2.0.<\/span>
\n shutterstock.com<\/a><\/span>
\n <\/figcaption><\/figure>\n

China\u2019s Made in China 2025 strategy makes perfect sense in my field of research, which concerns where products are manufactured and how this effects their popularity in the global market place. A strong and positive image of a country can generate what economists call \u201chalo effects\u201d<\/a> on its products. So, Germans have built good reputations for their cars and engineering, France and Italy for their wine and fashion, and the US for their innovative products.<\/p>\n

This worldwide reputation brings with it prestige and higher price premiums. Although there is still debate around whether brand origin could be more important than where the product is produced (Apple, for example designs its products in the US but manufactures them in China), there is no doubt that \u201cMade in China\u201d suffers from an image problem<\/a>.<\/p>\n

Chinese products have long been associated with a cheap and cheerful perception that they are not good in terms of quality or ingenuity. The Chinese government has long been aware of this view and keen to change it. <\/p>\n

At the turn of the 21st century, it set up a policy called \u201cGoing Out\u201d<\/a> to encourage leading Chinese firms to expand internationally, acquire new technology and the tools to innovate. The two big examples were IT firm Lenovo\u2019s takeover of IBM\u2019s personal computer division<\/a> in 2005 and Geely automotive\u2019s purchase of Volvo<\/a> in 2010. Made in China 2025 serves the same purpose \u2013 to boost China\u2019s technology and innovation capabilities and to improve the image of Chinese products.<\/p>\n

Impressive growth<\/h2>\n

There is no doubt that China has come a long way since the 1990s. It has built 22,000km of advanced high speed rail network<\/a> within the last decade, which is more than the rest of the world combined. It is also considered as the global leader in renewable energy and technology<\/a>, patent filings<\/a>, commercial drones<\/a>, industrial robotics<\/a> and e-commerce and mobile payments<\/a>. <\/p>\n

\n \"\"
\n China is already a leader in some tech.<\/span>
\n shutterstock.com<\/a><\/span>
\n <\/figcaption><\/figure>\n

Chinese telecommunications company Huawei typifies the transformation of Chinese products in recent years. Within the last decade, Huawei has surpassed Ericsson and Nokia<\/a> to become the world\u2019s biggest telecom equipment supplier and has just overtaken Apple as the world\u2019s second largest smartphone maker<\/a>, behind Samsung. <\/p>\n

What\u2019s more remarkable about these statistics is that Huawei has transformed itself from a cheap phone maker to an accepted premium brand that can compete with Apple and Samsung<\/a>. Its latest releases the top of the range Huawei P20 Pro will retail for US$1,100 and its top end model Huawei Porsche Design Mate RS will sell for US$2,109<\/a> \u2013 even more than the iPhone X.<\/p>\n

\"TheThere is no doubt that some in the US are uncomfortable<\/a> with China\u2019s impressive growth and feel threatened by it. It suggests the current trade dispute is not just about imports and exports, but also an incumbent superpower feeling the threat of a growing challenger.<\/p>\n

Qing Shan Ding<\/a>, Senior Lecturer in Marketing, University of Huddersfield<\/a><\/em><\/span><\/p>\n

This article was originally published on The Conversation<\/a>. Read the original article<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Qing Shan Ding, University of Huddersfield Tensions are escalating between China and the US over trade. The Chinese government has announced retaliatory measures on a range of American products including cars and some American agriculture products after the US listed 1,333 Chinese products to be hit by punitive tariffs of 25%. Yet a trade war […]<\/p>\n","protected":false},"author":44,"featured_media":11875,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[277],"tags":[145,3325,255,1558,351,1597,2946],"_links":{"self":[{"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/posts\/11874"}],"collection":[{"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/comments?post=11874"}],"version-history":[{"count":1,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/posts\/11874\/revisions"}],"predecessor-version":[{"id":11876,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/posts\/11874\/revisions\/11876"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/media\/11875"}],"wp:attachment":[{"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/media?parent=11874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/categories?post=11874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/tags?post=11874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}