Thursday, September 24, 2009

You Can't Make This Stuff Up - China Appeals US Win In Trade Dispute Over Music And Film

China is clearly recognized as a long-standing offender in its rampant abuse of intellectual property rights of film and music. This appeal is based on the same fraud perpetuated by the Chinese government in their massive counterfeiting racket.

If you are an advocate of what we now see called free trade, you need to look yourself squarely in the mirror and do a gut check because you are in violation of the natural laws governing intelligence. As we have highlighted before, there is no such thing as free trade. And there is no one who can cite a single example of it because it doesn't exist and never has. We should seek generally fair trade. And that doesn't apply just to other countries but also trade within the American economy itself. Fair trade generally benefits the common good. How does anything we see today compare favorably to fair trade? We have never witnessed anything remotely similar to today's definition of trade since this country was founded. There is a reason for that. This is not capitalism.

Over the years we have highlighted abuses by the Chinese communists in their attempt to manipulate trade and their never-ending fraudulent counterfeiting schemes. These schemes cost the U.S. countless thousands, if not millions of jobs and over some period of time what would likely amount to hundreds of billions of dollars or more in lost revenue. All because of the U.S.'s abhorrent enforcement of intellectual property rights and dubious trade agreements. The only reasons I could ever fathom why these policies are allowed by the American government are either corruption or as I remarked a few years ago, the U.S. is engaged in a little game of economic warfare of its own and using its citizen's plight to accomplish it. Almost surely the former but with such little transparency who really knows?

Anyone naive enough to believe global trade is not a form of economic warfare needs to wake up. Chronic trade cheaters are morally indistinguishable from the warfare practiced by Central American drug cartels. China's economy relies substantially on illegal activities and represents an astronomical percentage of counterfeited goods into both the U.S. and Europe. Some estimates have China's involvement in global product counterfeiting at greater than 50%. This includes everything from from drugs to cars to electronics to shoes to software.

Counterfeiting is a form of government-sponsored corruption rampant in underdeveloped economies. Why relinquish power and embrace domestic reforms when you can maintain the status quo and steal from legitimate sources of invention around the world? Especially when the consequences are nonexistent.

I used to work with a company that had full-time investigators in China and southeast Asia constantly attempting to shut down the never-ending stream of factories producing counterfeited goods using their brand. Yet many of these targeted businesses are restricted from selling their goods in these very countries. This is symptomatic of an undeveloped rule of law. Which, by the way, is a substantial attraction to manufacturing in China and underdeveloped economies by western multi-nationals. A complicit corruption of exploitation in itself. Multi-national corporations aka oligopolies are exposed to tremendous risks in the coming shakeout of the global economy. But then they never should have existed in the first place were antitrust rules to be enforced.
posted by TimingLogic at 7:52 AM