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  • [MALE INTERVIEWER] YOU GOING TO BE OKAY?

  • I'M 63 YEARS OLD.

  • I'M LIKELY TO SKATE MY WAY TO THE GRAVE,

  • BUT I HAVE THREE YOUNG CHILDREN WHO ARE ALL ENGINEERS,

  • AND I WORRY ABOUT THEIR ABILITY TO WORK

  • IN AMERICAN MANUFACTURING DOWN THE ROAD...

  • [MACHINERY CHUGGING]

  • [MAN] I THINK THAT THE WATER'S GOING TO GET HOTTER AND HOTTER,

  • AND IF THERE IS NO EVENT TO WAKE PEOPLE UP,

  • I THINK CHINA CAN JUST OWN

  • MORE AND MORE AND MORE AND MORE OF OUR DEBT,

  • AND EVERYTHING'S FINE

  • UNTIL THAT MAGICAL MOMENT WHEN IT'S NOT,

  • AND ALL THE SORRIES IN THE WORLD

  • AREN'T GOING TO MAKE THAT ANY DIFFERENT.

  • [MALE NARRATOR] THE FILM YOU ARE ABOUT TO SEE

  • ADDRESSES ONE OF THE MOST URGENT PROBLEMS FACING AMERICA--

  • IT'S INCREASINGLY DESTRUCTIVE TRADE RELATIONSHIP

  • WITH A RAPIDLY RISING CHINA.

  • AS YOU WATCH THIS FILM,

  • IT IS IMPORTANT TO ALWAYS DISTINGUISH CLEARLY

  • BETWEEN THE GOOD AND HARDWORKING PEOPLE OF CHINA

  • AND THEIR REPRESSIVE COMMUNIST GOVERNMENT

  • NOW VICTIMIZING BOTH AMERICAN AND CHINESE CITIZENS ALIKE.

  • I'M HERE TO BUY ME A BIG-SCREEN TV,

  • MY FIRST BIG SCREEN, MAN,

  • 40 INCH, FOR 265.

  • [INTERVIEWER] WHERE'S THAT PRODUCT MADE?

  • PROBABLY IN CHINA.

  • CHINA. CHINA.

  • THIS IS MADE IN CHINA.

  • [INTERVIEWER] DO YOU KNOW HERE THAT BIKE WAS MADE?

  • NO, BUT I KNOW IT'S HUFFY.

  • WHERE WERE THESE PRODUCTS MADE? DO YOU KNOW?

  • PROBABLY FROM CHINA WHERE EVERYTHING ELSE IS MADE.

  • OH, THIS [BLEEP] IS MADE IN AMERICA.

  • [MAN] WELL, AMERICAN IS BETTER.

  • SO IS THIS AMERICAN?

  • I'M NOT SURE IF IT IS AMERICAN,

  • BUT HOPEFULLY IT IS.

  • [MAN #2] YEAH, I THINK I GOT A GREAT DEAL.

  • YOU CAN'T BEAT 300 BUCKS FOR A 46-INCH TV.

  • TELL YOU THE TRUTH,

  • I DIDN'T EVEN COME HERE EXACTLY FOR THIS,

  • BUT I SEEN IT AND COULDN'T PASS UP THE DEAL, MAN.

  • FOR, YOU KNOW, $200, YOU CAN'T REALLY, YOU KNOW, BEAT THAT,

  • SO THEY TOLD ME IT WAS 200,

  • AND NOW THAT'S IN MY-- IT'S IN MY CART NOW.

  • DID YOU SEE WHERE IT WAS MADE?

  • OH, YEAH, IT WAS MADE IN CHINA.

  • HEY, I'M FINE WITH IT, YOU KNOW.

  • IF THE AMERICAN PEOPLE CAN'T PROVIDE ME WITH WHAT I NEED,

  • I GOTTA GET IT FROM CHINA.

  • HEY, IT IS WHAT IT IS, YOU KNOW,

  • I'M JUST BEING TRUTHFUL.

  • DON'T HATE ME.

  • SO HOW DO YOU FEEL WHEN AMERICANS BUY CHINESE PRODUCTS?

  • I FEEL REALLY BAD BECAUSE YOU KNOW WHAT HAPPENS IS

  • IT'S NOT JUST AMERICA IS BUYING UP CHINESE PRODUCTS.

  • IT'S THAT AMERICAN PEOPLE ARE LOSING THEIR JOBS.

  • I WAS LAID OFF THREE TIMES WITHIN SIX MONTHS

  • UNTIL I WAS PERMANENTLY LAID OFF.

  • I GRADUATED WITH MY BACHELOR'S IN 2004.

  • I'VE BEEN OUT TRYING TO USE THAT OF COURSE

  • BECAUSE I SPENT A LOT OF MONEY GOING TO SCHOOL,

  • AND I HAVEN'T BEEN ABLE TO FIND ANYTHING.

  • CHINA, I THINK, IS RESPONSIBLE

  • FOR WIPING OUT A GOOD DEAL OF THE MANUFACTURING

  • THAT WE HAVE, OR HAD, IN NORTHEAST OHIO.

  • AND I THINK THAT IS CONTINUING

  • AS THEY CONTINUE TO MANIPULATE THEIR CURRENCY,

  • AS THEY CONTINUE TO NOT HAVE THE LEVEL OF WORKPLACE SAFETY

  • OR ENVIRONMENTAL OR HEALTH STANDARDS

  • THAT WE HAVE HERE IN THE UNITED STATES.

  • SO WE'VE SEEN OUR WHOLE MANUFACTURING BASE

  • UPROOT AND REPLANT

  • IN A PLACE WHERE YOU CAN COMMIT CRIMES AGAINST WORKERS

  • AND JUST GO OUT TO DINNER THAT NIGHT.

  • SO WHEN A LARGE COMPANY

  • DECIDES TO MOVE ITS PRODUCTION OFF SHORE

  • AND IT CLOSES A FACTORY

  • IN A CITY OR A TOWN IN THE UNITED STATES,

  • THAT BASICALLY LEAVES-- IT'S LIKE A BLACK HOLE.

  • SUDDENLY THAT FACTORY JUST DISAPPEARS,

  • AND EVERYTHING ELSE GOES DOWN WITH IT.

  • JOBS DISAPPEAR,

  • AND THE WAY THE ECONOMY'S GOING RIGHT NOW,

  • IT'S TOUGH TO FIND A JOB.

  • I JUST RECENTLY FINISHED GRADUATE SCHOOL,

  • AND EVEN COMING OUT WITH THAT, IT'S STILL HARD TO FIND ONE.

  • SOME OF THE WORKERS AT COMPANIES,

  • LITERALLY THEIR LAST ACT AT THE FACTORY

  • WAS TO UNBOLT THE MACHINE

  • AND LOAD IT UP TO BE SHIPPED OFF TO CHINA.

  • I EVEN TALKED TO A FELLA DOWN THERE.

  • THEY WANTED TO SEND HIM

  • OVER TO CHINA TO TEACH THE PEOPLE

  • HOW TO RUN THE MACHINES THAT THEY WERE SHIPPING OVER THERE.

  • HE WAS 63 YEARS OLD.

  • HE SAID, "I ONLY GOT TWO MORE YEARS TO GO,

  • AND I CAN RETIRE, SO I'M NOT GOING TO BOTHER DOING IT."

  • HE SAID, "BAD ENOUGH THEY TOOK MY JOB.

  • NOW THEY WANT ME TO SHOW THEM HOW TO DO IT, TOO."

  • PEOPLE WHO WERE SUPPLYING THAT PLANT WITH MATERIALS,

  • EQUIPMENT, MAINTENANCE SERVICES,

  • EVEN THE ACCOUNTING FIRMS,

  • DESIGN FIRMS, R&D FIRMS,

  • AND THEN ALL THE OTHER SERVICES AROUND IT, LIKE RESTAURANTS,

  • WHAT HAPPENS TO THEM?

  • THEY'RE DOOMED. THEY GO DOWN WITH IT.

  • THEY CAN'T FOLLOW THAT COMPANY OFFSHORE TO SHANGHAI.

  • IT'S DIFFICULT TO BE UNEMPLOYED

  • BECAUSE YOU HAVE A MORTGAGE

  • AND YOU HAVE YOUR REGULAR BILLS YOU HAVE TO PAY.

  • YOU HAVE TO PAY FOR A CAR,

  • AND YOU HAVE TO PUT FOOD ON THE TABLE,

  • AND WHEN YOU HAVE JUST A SMALL AMOUNT OF MONEY

  • FROM THE STATE COMING IN,

  • SOMETIMES IT'S HARD TO MAKE IT.

  • I'M TRYING TO GET FOOD.

  • LIKE, THAT'S WHAT I'M HERE FOR.

  • I MEAN, THIS IS NOT JUST AN UNEMPLOYMENT LINE.

  • THIS IS FOR PEOPLE WHO ARE HUNGRY, AND I'M HUNGRY.

  • AND IT JUST REALLY IS UNFAIR

  • THAT BEING IN A COUNTRY AS GREAT AS THE UNITED STATES

  • TO HAVE OUR PEOPLE STRUGGLING THE WAY THEY ARE

  • TO NOT FIND WHAT IS JUST COMMON-- YOU WORK.

  • THAT'S WHAT YOU DO.

  • AND FOR THEM NOT TO FIND THAT MONTH AFTER MONTH AND MONTH,

  • IT JUST DOESN'T MAKE SENSE TO ME.

  • I DON'T KNOW IF IT'S THE PRESIDENT.

  • I DON'T KNOW IF IT'S THE--

  • HONESTLY, I DON'T KNOW WHO TO POINT THE BLAME TO.

  • IF WE TALK ABOUT WHO'S TO BLAME,

  • I THINK PARTIALLY OUR OWN GOVERNMENT.

  • OUR GOVERNMENT SHOULD BE DOING SOMETHING.

  • THEY COULD HAVE STEPPED IN, I THINK, A LONG TIME AGO.

  • PLEASE HEAR US, AND PLEASE UNDERSTAND

  • THAT COMPANIES LIKE THIS ARE SPECIAL.

  • SMALL COMPANIES ARE WHAT MAKES AMERICA,

  • AND UNLESS SOMEBODY DOES SOMETHING

  • ABOUT UNRESTRICTED IMPORTING,

  • YOU'RE GONNA LOSE THE REST OF US, TOO.

  • WE'VE NEVER HAD A REALLY BIG AND HOSTILE COUNTRY

  • COME INTO OUR MARKETS.

  • MOST OF THE INTERNATIONAL COMPETITION WE HAVE FACED,

  • FROM JAPAN, FROM GERMANY, FROM THE REST OF EUROPE,

  • HAS COME WITHOUT A SENSE

  • THAT BEHIND IT WAS A GOVERNMENT

  • THAT HAS SOUGHT CONFRONTATIONS WITH THE UNITED STATES

  • ON A REGULAR BASIS.

  • THE WTO-- IT'S NOT BASED HERE.

  • WHO IN THE UNITED STATES IS ON THE WTO?

  • DOES ANYBODY KNOW?

  • IN 2001 CHINA JOINED THE WTO-- THE WORLD TRADE ORGANIZATION--

  • WITH THE STRONG SUPPORT OF A DEMOCRATIC PRESIDENT

  • AND A REPUBLICAN-CONTROLLED CONGRESS.

  • BEFORE THE INK WAS DRY ON THIS FREE TRADE AGREEMENT,

  • CHINA BEGAN FLOODING AMERICAN MARKETS

  • WITH ITS ILLEGALLY SUBSIDIZED

  • AND VERY DANGEROUS EXPORTS

  • WHILE THE BIG MULTINATIONAL COMPANIES

  • THAT HAD LOBBIED HEAVILY FOR THE AGREEMENT

  • RAPIDLY ACCELERATED THE OFF SHORING OF AMERICAN FACTORIES

  • AND AMERICAN JOBS TO CHINA.

  • TODAY, AS A RESULT OF THE BIGGEST POLITICAL SHELL GAME

  • IN AMERICAN ECONOMIC HISTORY,

  • CHINA HAS STOLEN THOUSANDS OF OUR FACTORIES

  • AND MILLIONS OF OUR JOBS,

  • MULTINATIONAL CORPORATION PROFITS ARE SOARING,

  • AND WE NOW OWE OVER $3 TRILLION

  • TO THE WORLD'S LARGEST COMMUNIST NATION.

  • THIS WAS NOT HOW IT WAS SUPPOSED TO TURN OUT--

  • [MAN] LADIES AND GENTLEMEN,

  • THE PRESIDENT OF THE UNITED STATES.

  • ...WHEN WILLIAM JEFFERSON CLINTON

  • WAS SELLING CHINA'S ENTRY

  • INTO THE WORLD TRADE ORGANIZATION

  • TO THE AMERICAN PEOPLE.

  • IF YOU BELIEVE IN A FUTURE OF GREATER OPENNESS AND FREEDOM

  • FOR THE PEOPLE OF CHINA,

  • YOU OUTTA BE FOR THIS AGREEMENT.

  • IF YOU BELIEVE IN A FUTURE OF GREATER PROSPERITY

  • FOR THE AMERICAN PEOPLE,

  • YOU CERTAINLY SHOULD BE FOR THIS AGREEMENT.

  • IF YOU BELIEVE IN A FUTURE OF PEACE AND SECURITY

  • FOR ASIA AND THE WORLD,

  • YOU SHOULD BE FOR THIS AGREEMENT.

  • THIS IS THE RIGHT THING TO DO.

  • IT'S AN HISTORIC OPPORTUNITY

  • AND A PROFOUND AMERICAN RESPONSIBILITY.

  • IN PUSHING FOR CHINA'S ENTRY INTO THE WTO,

  • PRESIDENT CLINTON EMBRACED A DOCTRINE DATING BACK

  • TO PRESIDENT RICHARD NIXON,

  • KNOWN IN WASHINGTON CIRCLES AS THE "POLICY OF ENGAGEMENT."

  • [FILMSTRIP NARRATOR] PEKING-- HISTORIC SITE

  • FOR AN UNPRECEDENTED MEETING BETWEEN EAST AND WEST.

  • PRESIDENT AND MRS. NIXON ARRIVE

  • AND PREMIER CHOU EN LAI IS ON HAND

  • TO EXTEND AN OFFICIAL WELCOME

  • TO THE PRESIDENTIAL COUPLE.

  • IT'S MR. NIXON'S INITIAL MOVE

  • TOWARDS HIS SELF-PROCLAIMED GOAL-- A GENERATION OF PEACE.

  • [NARRATOR] HERE, PRESIDENT CLINTON OFFERS HIS OWN VISION

  • OF THE GOAL OF ENGAGING CHINA.

  • I DON'T BELIEVE IT'S RIGHT

  • TO CRACK DOWN ON PEOPLE

  • FOR THEIR RELIGIOUS VIEWS OR THEIR POLITICAL EXPRESSION

  • OR BECAUSE THEY WANT TO BE

  • IN AN ASSOCIATION LIKE THE FALUN GONG.

  • I DON'T THINK THAT'S RIGHT,

  • BUT I DON'T BELIEVE

  • THAT WE WILL HAVE MORE INFLUENCE ON CHINA

  • BY GIVING THEM THE BACK OF OUR HAND.

  • IN MASTERFULLY ARGUING

  • FOR CHINA'S ENTRY INTO THE WORLD TRADE ORGANIZATION,

  • PRESIDENT CLINTON

  • PROMISED THE BRIGHTEST OF FUTURES

  • FOR BOTH AMERICAN WORKERS AND AMERICAN MANUFACTURERS.

  • ECONOMICALLY, THIS AGREEMENT

  • IS THE EQUIVALENT OF A ONE-WAY STREET.

  • IT REQUIRES CHINA TO OPEN ITS MARKETS

  • WITH A FIFTH OF THE WORLD'S POPULATION,

  • POTENTIALLY THE BIGGEST MARKETS IN THE WORLD.

  • FOR THE FIRST TIME CHINA WILL AGREE TO PLAY

  • BY THE SAME OPEN TRADING RULES WE DO.

  • NEVER HAPPENED BEFORE.

  • FOR THE FIRST TIME OUR COMPANIES

  • WILL BE ABLE TO SELL AND DISTRIBUTE PRODUCTS IN CHINA

  • MADE BY WORKERS HERE IN AMERICA.

  • AND BY ECONOMICALLY ENGAGING CHINA,

  • BOTH DEMOCRATS AND REPUBLICANS ARGUED,

  • THIS WOULD ULTIMATELY DEMOCRATIZE THE CHINESE DRAGON

  • AND FREE THE CHINESE PEOPLE.

  • WE HAVE WAGED AN INTENSE BATTLE

  • IN SUPPORT OF AN IMPORTANT PRINCIPLE, AND THAT IS FREEDOM.

  • AND THE PEOPLE OF CHINA AND THE CITIZENS OF THE UNITED STATES

  • WILL BENEFIT ENORMOUSLY.

  • AFTER THE VICTORY VOTE,

  • THE REPUBLICAN HOUSE MAJORITY LEADERS

  • WOULD CELEBRATE THE BI-PARTISAN VICTORY

  • WITH THE CRACKING OPEN OF A CEREMONIAL FORTUNE COOKIE.

  • I'M NOT VERY GOOD AT THESE THINGS.

  • WHOA.

  • [SPECTATORS LAUGHING]

  • IT'S GOT A LOTTERY NUMBER. NO.

  • IT SAYS NEW AMERICAN PROVERB--

  • NEW PROSPERITY AWAITS YOU

  • BECAUSE NORMAL TRADE RELATIONS.

  • YEA.

  • IT'S A CONFRONTATION OF WORLD VIEWS

  • THAT WE WILL WIN,

  • AND I'M LOOKING FORWARD TO THE FUTURE.

  • SO JUST WHAT HAS AMERICA'S FUTURE LOOKED LIKE

  • SINCE CHINA JOINED THE WORLD TRADE ORGANIZATION IN 2001?

  • WE ARE IN A TRADE WAR

  • AND STEALING, LYING, AND CHEATING

  • ON THE PART OF THE CHINESE IS ALL PART OF IT.

  • FREE TRADE'S GREAT STUFF IF YOU CAN GET IT,

  • BUT WHAT WE HAVE WITH CHINA IS NOT FREE TRADE.

  • FOR CHINA TO SELL SOMETHING AT 1/10th THE PRICE

  • OF WHAT IT WOULD COST IN THE UNITED STATES TO PRODUCE,

  • THEY ARE CHEATING MONUMENTALLY,

  • IN A MAJOR, MASSIVE SORT OF WAY.

  • ON EVERYTHING.

  • WHEN CHINA JOINED THE WORLD TRADE ORGANIZATION IN 2001,

  • IT PROMISED TO STOP CHEATING

  • AND PLAY BY FAIR TRADE RULES.

  • THAT MEANT ABANDONING UNFAIR TRADE PRACTICES

  • LIKE CURRENCY MANIPULATION,

  • ILLEGAL EXPORT SUBSIDIES...

  • AND ABUSING ITS WORKERS.

  • INSTEAD, THE CHINESE GOVERNMENT

  • HAS USED THESE WEAPONS OF JOB DESTRUCTION

  • TO LAUNCH A SUSTAINED AND DEVASTATING ATTACK

  • ON AMERICA'S FACTORIES AND JOBS

  • WHILE FLOODING OUR MARKETS

  • WITH DANGEROUS PRODUCTS.

  • THERE'S NO QUESTION

  • THAT A LARGE PART OF CHINA'S COMPETITIVE ADVANTAGE

  • HAS COME FROM ENVIRONMENTAL NEGLECT.

  • BUT THE CHINESE GOVERNMENT'S WILLINGNESS TO USE POLLUTION

  • AS A COMPETITIVE EDGE

  • HAS COME AT A VERY HEAVY PRICE.

  • [MAN] CHINA HAS THE MOST DEGRADED ENVIRONMENT IN THE WORLD.

  • SIXTEEN OF THE WORLD'S 20 DIRTIEST CITIES

  • ARE LOCATED IN THE PEOPLE'S REPUBLIC.

  • LESS THAN ONE PERCENT OF THEIR URBAN AIR

  • MEETS THE AIR QUALITY STANDARDS

  • SET BY THE EUROPEAN UNION.

  • IT'S DIFFICULT TO THINK ABOUT WHAT IS HAPPENING,

  • PARTICULARLY TO THE LUNGS OF CHILDREN BREATHING AIR LIKE THAT.

  • [McCORMACK] IN ONE FELL SWOOP,

  • YOU CAN MOVE YOUR PRODUCTION TO CHINA

  • AND NOT HAVE TO DEAL WITH A HUNDRED YEARS OF REGULATIONS

  • THAT WE'VE PUT INTO PLACE TO PROTECT OUR WORKERS,

  • TO PROTECT OUR SOCIETY,

  • JUST BY MOVING YOUR PRODUCTION TO CHINA

  • BECAUSE THEY DON'T HAVE ANY.

  • THEY HAVE WHAT WE HAD PROBABLY IN 1910.

  • THE MOST TRAGIC STORY IS THE "CANCER VILLAGES"

  • BECAUSE OF TOXIC METALS IN THE SOIL,

  • BECAUSE OF THE POLLUTION,

  • BECAUSE MANUFACTURERS

  • HAVE NOT BEEN FORCED TO CLEAN UP THEIR PLANTS,

  • AND SO ESSENTIALLY WHAT WE HAVE

  • IS THE WORLD'S MOST DEGRADED ENVIRONMENT.

  • WHETHER YOU'RE TALKING ABOUT HEAVY METALS POLLUTION,

  • AIR POLLUTION, WATER POLLUTION,

  • CHINA'S GOT IT ALL.

  • AND PARTICULARLY FOR HEAVY INDUSTRIES

  • LIKE CHEMICALS OR STEEL,

  • THE ABILITY TO WANTONLY POLLUTE IN CHINA

  • ADDS UP TO A HUGE COST ADVANTAGE

  • IN THE GLOBAL MARKETPLACE.

  • [MAN] IF A COMPANY LIKE BAO STEEL IN CHINA

  • IS ALLOWED TO DUMP POLLUTION INTO THE YANGTZE RIVER

  • WHEN, SAY, A UNITED STATES STEEL COMPANY

  • IS NOT ALLOWED TO DO THE SAME IN THE OHIO RIVER,

  • THAT'S GOING TO BE A SOURCE OF COMPETITIVE ADVANTAGE

  • FOR THE CHINESE

  • BECAUSE POLLUTION CONTROL COSTS MONEY.

  • IT PROVIDES THEM AN ECONOMIC ADVANTAGE

  • IN ENVIRONMENTAL COSTS OF APPROXIMATELY $40 A STEEL TON,

  • OR REPRESENTS ABOUT 5% OF THE COST OF PRODUCING THAT STEEL.

  • [INTERVIEWER] IS A 5% COST ADVANTAGE SIGNIFICANT?

  • IN THE STEEL INDUSTRY

  • A 5% COST ADVANTAGE IS GREATER THAN OUR PROFITABILITY.

  • AND HERE'S THE ULTIMATE IRONY--

  • THE MORE WE ALLOW OUR AMERICAN MULTINATIONALS

  • TO OFFSHORE PRODUCTION TO CHINA,

  • THE MORE TOTAL GLOBAL POLLUTION WE CREATE

  • AND A GOOD BIT OF THAT

  • COMES RIGHT BACK TO AMERICA BY WAY OF THE JET STREAM.

  • CARBON EMISSIONS IN CHINA PER THOUSAND DOLLARS OF GNP

  • ARE SEVEN TIMES WHAT THEY ARE IN THE UNITED STATES.

  • THAT LEADS TO CARBON EMISSIONS AND PARTICULATE MATTER

  • FALLING ALL ALONG THE COAST OF THE UNITED STATES.

  • 25% OF THE PARTICULATE EMISSIONS

  • FALLING IN CALIFORNIA

  • ARE FROM ASIA IN GENERAL AND CHINA IN PARTICULAR.

  • [WOMAN] THEY'RE GOOD AND BAD REASONS

  • WHY GOODS ARE CHEAP IN THE INTERNATIONAL ECONOMY.

  • THE GOOD REASON IS THAT SOMEBODY IS A GOOD PRODUCER,

  • THAT THEY'RE QUICK, THAT THEY GET THE PRODUCT TO MARKET,

  • THEY HAVE GOOD TECHNOLOGY,

  • THAT THEIR WORKERS ARE EFFICIENT AND WELL-TRAINED.

  • THE BAD REASON IS THAT THE WORKERS ARE TREATED LIKE DIRT.

  • WHEN THE WORKERS IN CHINA ARE BEING ABUSED,

  • THEN WORKERS IN AMERICA HAVE A TOUGHER TIME COMPETING AGAINST THEM.

  • [McCORMACK] AS AN EMPLOYER IN CHINA,

  • DO YOU HAVE ANY REGULATIONS YOU HAVE TO DEAL WITH,

  • LIKE OSHA, LABOR REGULATIONS?

  • DO YOU HAVE TO PAY EVEN SOCIAL SECURITY OR MEDICARE?

  • DO YOU HAVE TO PROTECT YOUR WORKERS IN DIFFICULT OR UNSAFE CONDITIONS?

  • NO.

  • NO, NO, NO, NO.

  • NO, YOU DON'T.

  • YOU GO TO PRISON IF YOU TRY TO FORM A LABOR UNION.

  • FREEDOM OF ASSOCIATION,

  • THE RIGHT TO ORGANIZE AND BARGAIN COLLECTIVELY,

  • ARE COMPLETELY ABSENT IN CHINA TODAY.

  • THERE'S NO EQUIVALENT TO OSHA, OCCUPATIONAL SAFETY REGULATIONS--

  • AND THEY LOSE ABOUT 130,000 MEN AND WOMEN TO--

  • AND THAT'S THE ONES THEY REPORT ON--

  • TO ACCIDENTS PER YEAR

  • THAT MANY OF WHICH COULD BE PREVENTED WITH GOOD PROTECTION.

  • THEY DON'T COMPLY WITH THEIR OWN CHILD LABOR LAWS,

  • PRISON LABOR LAWS, HEALTH AND SAFETY LAWS,

  • MINIMUM WAGE LAWS.

  • WELL, THERE'S A DR. LEE,

  • WHO LIVES IN NEW JERSEY,

  • WHO WAS ACTUALLY AN AMERICAN CITIZEN,

  • AND HE WAS IN CHINA, AND HE WAS ARRESTED

  • AND KEPT IN ONE OF THEIR WORK CAMPS FOR THREE YEARS.

  • WHEN HE WAS FINALLY RELEASED,

  • THANKS TO PRESSURE FROM THE AMERICAN PEOPLE,

  • HE CAME BACK TO NEW JERSEY, AND HE WAS IN A STORE,

  • AND HE SAW THESE BIG SLIPPERS THAT HE'D MADE IN THE WORK CAMP.

  • HOW CAN WAL-MART, OR ANYONE ELSE IN THE UNITED STATES,

  • ALLOW PRODUCTION FACILITIES IN CHINA

  • TO SELL GARMENTS, CHOPSTICKS,

  • CHRISTMAS DECORATIONS

  • THAT ARE MADE IN FORCED LABOR CAMPS?

  • [WU] YOU CAN GO TO CHINA, GO TO EVERY PRISON CAMP.

  • YOU CAN SEE WHAT ARE THE PRISONERS DOING.

  • EVERYBODY VERY BUSY.

  • IT'S NOT ALL ABOUT CHINA CURRENCY MANIPULATION,

  • BUT A LOT OF IT IS.

  • CHINA MANIPULATES ITS CURRENCY

  • BY ILLEGALLY PEGGING THE VALUE OF THE CHINESE YUAN

  • TO THAT OF THE U.S. DOLLAR

  • AT A RATE FAR BELOW MARKET VALUE.

  • MOST ECONOMISTS WOULD SAY

  • THAT CHINA GETS ANYWHERE FROM A 25 TO 40 CENT ADVANTAGE

  • FOR EVERY DOLLAR.

  • SO IT'S LIKE HAVING A TARIFF ON GOODS COMING

  • FROM THE UNITED STATES OF 40 OR 50%

  • BY THE AMOUNT THAT THEY'RE UNDERPRICING THEIR CURRENCY.

  • IT ALSO GIVES THEIR EXPORTS

  • TO THE UNITED STATES

  • A SUBSIDY OF 40 OR 50%

  • TO CAPTURE OUR MARKET

  • AND KNOCK OUT DOMESTIC INDUSTRIES

  • THAT MIGHT BE COMPETING WITH THEM.

  • SIMPLY, AN UNDERVALUED CURRENCY

  • MAKES CHINESE COFFEEMAKERS $10 A PIECE

  • INSTEAD OF 15 OR 20.

  • AND IT MAKES AMERICAN CARS IN CHINA $30,000 INSTEAD OF 25.

  • IN OTHER WORDS,

  • CHINA'S MANIPULATED CURRENCY

  • ACTS AS A HUGE SUBSIDY

  • TO CHINESE EXPORTS TO AMERICA

  • AND AN EQUALLY BIG TARIFF BARRIER

  • BLOCKING AMERICAN EXPORTS TO CHINA.

  • THE RESULT--

  • MORE JOBS IN CHINA,

  • FEWER JOBS IN AMERICA,

  • AND A HUGE AND CHRONIC AMERICAN TRADE DEFICIT WITH CHINA.

  • THE CHINESE GOVERNMENT DOES NOT DENY THIS.

  • CHINESE OFFICIALS THEMSELVES

  • SAY THAT THEY FIX THE VALUE OF THEIR CURRENCIES

  • TO HELP CHINESE WORKERS.

  • WHEN PREMIER WEN JIABAO WAS IN THIS COUNTRY RECENTLY,

  • HE SAID, "IF WE ALLOW THE CURRENCY TO FLOAT,

  • CHINESE COMPANIES ARE GONNA GO BANKRUPT."

  • OKAY, BUT WHAT ABOUT AMERICAN WORKERS?

  • [REP. RYAN] THEY'RE CHEATING ON THE INTELLECTUAL PROPERTY

  • BY JUST FLAT OUT PIRATING STUFF FROM THE UNITED STATES.

  • YOU DON'T WANT CHINA TO GET THEIR HANDS ON YOUR LATEST PIECE OF TECHNOLOGY, WHATEVER,

  • BECAUSE THEY WILL COPY IT,

  • AND THEY WILL TURN AROUND AND PRODUCE IT.

  • MOST FAMOUSLY, COPYRIGHT PIRATES IN CHINA ARE STAMPING OUT DISNEY DVDS.

  • THAT'S WHAT EVERYBODY KNOWS OF.

  • WHAT'S MORE IMPORTANT IS THE THEFT OF THE BLUEPRINTS,

  • FOR EXAMPLE, FOR HIGH TECHNOLOGIES.

  • I MEAN, I HEAR ALL THE TIME ABOUT AMERICAN COMPANIES

  • WHO FIND THEMSELVES COMPETING IN THE MARKETPLACE WITH A CHINESE PRODUCT,

  • AND THEY TAKE IT APART,

  • AND THEY FIND THEMSELVES LOOKING IN THE MIRROR

  • BECAUSE THE CHINESE HAVE JUST STOLEN THE PLANS OF THEIR OWN PRODUCT.

  • AND ONE OF AMERICA'S HIGHEST TECH COMPANIES

  • HAS CERTAINLY EXPERIENCED THIS KIND OF PIRACY FIRSTHAND

  • AND A SCHOOL OF VERY HARD KNOCKS AT THE HANDS OF THE CHINESE GOVERNMENT.

  • [CHANG] GOOGLE CAME INTO THE CHINESE MARKET

  • AND OF COURSE, IT ENDED UP WITH A DOMINANT MARKET SHARE.

  • BUT BEIJING WANTED BAIDU, A LOCAL COMPANY,

  • TO BE ABLE TO OUTPACE GOOGLE.

  • WHAT BEIJING DID

  • WAS IT HACKED GOOGLE'S NETWORK,

  • IT STOLE ITS SOURCE CODE,

  • AND NOW BAIDU HAS MORE THAN 75% OF THE CHINA SEARCH MARKET.

  • THIS SHOWS THAT BASICALLY BEIJING WANTS THE LOCAL COMPANIES

  • TO BE THE NATIONAL CHAMPIONS.

  • BUT SOMETIMES CHINESE PIRATES

  • AREN'T CONTENT JUST TO STEAL THE INTELLECTUAL PROPERTY

  • OF AN AMERICAN CORPORATION.

  • SOMETIMES THEY JUST TAKE THE WHOLE COMPANY.

  • SO FELLOWES IS A COMPANY THAT MAKES SHREDDERS-- PAPER SHREDDERS--

  • AND THEY MOVED-- LIKE EVERYBODY--

  • THEY MOVED THEIR PRODUCTION TO CHINA.

  • THEY HIRED A COMPANY TO RUN THEIR PRODUCTION FOR THEM,

  • AND SUDDENLY, ONE DAY,

  • THEIR EMPLOYEES WERE LOCKED OUT OF THEIR OWN PLANT.

  • SO FELLOWES WENT FROM HAVING A LARGE PRODUCTION BASE IN CHINA ONE DAY

  • TO THE NEXT DAY, THEIR PARTNER SUDDENLY SHUT THEM OFF,

  • SHUT THEM DOWN.

  • THE MORAL OF THE FELLOWES STORY IS,

  • YOU BETTER BE VERY CAREFUL WHEN YOU MOVE YOUR PRODUCTION TO A COMMUNIST COUNTRY.

  • IT MAKES NO SENSE THAT CHINA,

  • WHO PRODUCES 45% OF THE STEEL IN THE WORLD,

  • HAS HIGH MANUFACTURING COSTS

  • YET SELLS STEEL AT THE LOWEST COST IN THE WORLD

  • AND IS GROWING AT A RATE OF 7 OR 8%.

  • THIS GROWTH FROM A HUNDRED MILLION TONS

  • TO 700 MILLION TONS,

  • GROWING BY 50 MILLION TONS PER YEAR,

  • IS ALL DUE TO STATE SUBSIDIES.

  • THE PROBLEM IS THAT AMERICAN COMPANIES

  • CANNOT COMPETE

  • BECAUSE THEY'RE NOT COMPETING WITH CHINESE COMPANIES.

  • THEY ARE COMPETING WITH THE CHINESE GOVERNMENT.

  • AT THE END OF THE DAY,

  • IT MOST CERTAINLY WILL RESULT IN MORE UNEMPLOYMENT IN THE U.S.

  • AND TO THE ADVANTAGE OF CHINA.

  • WE'RE CHUMPS.

  • SO JUST HOW BIG OF A CHUMP

  • HAS AMERICA BEEN FOR SUPPORTING CHINA'S ENTRY

  • INTO THE WORLD TRADE ORGANIZATION IN 2001?

  • IT'S LIKE WE'RE IN THE SUPER BOWL OF GLOBALIZATION,

  • AND IN FACT WE'RE BEING TAKEN APART.

  • AND IN THIS SUPER BOWL OF GLOBALIZATION,

  • WHEN YOU TALLY UP THE SCORE ON HUMAN RIGHTS ABUSES

  • AND CONSIDER THE PLIGHT OF TIBET,

  • THE TORTURE OF THE FALUN GONG,

  • AND THE CRUSHING OF RELIGION AND DEMOCRACY,

  • THIS MUCH IS CLEAR.

  • THE CHINESE GOVERNMENT IS THE WORLD'S WORST HUMAN RIGHTS ABUSER

  • ON THE PLANET TODAY.

  • AND WHEN YOU TALLY UP THE SCORE

  • ON CHINA'S RAPID MILITARY BUILDUP,

  • THIS, TOO, IS CLEAR...

  • [CHANG] CHINA IS THE ONLY MAJOR NATION IN THE WORLD

  • THAT IS PREPARING TO KILL AMERICANS.

  • AND OF COURSE,

  • WHEN YOU COUNT THE JOBS LOST

  • AND FACTORIES GONE

  • AND MILLIONS OF AMERICANS OUT OF WORK--

  • AMERICAN MANUFACTURING HAS BEEN IN AN ABSOLUTE CRISIS

  • OVER THE LAST DECADE.

  • 51/2 MILLION MANUFACTURING JOBS GONE.

  • 57,000 MANUFACTURING FACILITIES CLOSED IN THIS NATION.

  • SO YOU'RE IN A MASSIVE JOBLESS RECOVERY.

  • YOU'VE GOT 28 MILLION WOMEN AND MEN

  • WHO ARE IN VARIOUS STAGES OF UNEMPLOYMENT,

  • TWICE THE OFFICIAL NUMBER.

  • WHEN YOU TALLY UP ALL THESE SCORES,

  • IT'S CRYSTAL CLEAR

  • THAT CHINA'S ENTRY INTO THE WORLD TRADE ORGANIZATION

  • HAS BEEN BOTH A LOSING, AND A VERY DANGEROUS, PROPOSITION--

  • EVEN AS AMERICA HAS ALL BUT COMPLETELY SURRENDERED

  • ITS MANUFACTURING BASE TO CHINA.

  • WE DON'T MAKE A SINGLE CELL PHONE IN THE UNITED STATES,

  • NOT ONE IS MADE IN THE UNITED STATES.

  • [MAN] THERE IS NOT A SINGLE MODERN FLAT PANEL DISPLAY FACTORY

  • IN THE UNITED STATES.

  • DOES THAT MATTER?

  • ARE FLAT PANEL DISPLAYS IMPORTANT FOR MILITARY APPLICATIONS?

  • I THINK SO. THEY'RE WIDELY USED.

  • EVERY AIRPLANE, EVERY HELICOPTER HAS THEM.

  • THE UNITED STATES RIGHT NOW

  • IS UNABLE TO PUT A SINGLE MILITARY AIRCRAFT INTO THE SKY

  • WITHOUT USING COMPONENTS BUILT BY POTENTIAL ADVERSARIES.

  • WE PRODUCE ABOUT $3 BILLION WORTH OF PRINTED CIRCUIT BOARDS

  • IN THE UNITED STATES.

  • CHINA PRODUCES ALMOST $20 BILLION.

  • MACHINE TOOLS, WE PRODUCE $2.7 BILLION.

  • CHINA'S CONSUMPTION WAS 10 TIMES THAT AMOUNT.

  • IF YOU DON'T HAVE A MACHINE TOOL INDUSTRY,

  • DO YOU HAVE AN INDUSTRY?

  • IT'S, YOU KNOW, A BASIC COMPONENT OF AN INDUSTRIAL ECONOMY.

  • BUT WHAT ABOUT THOSE GREEN INDUSTRIES

  • THAT SOME OF OUR POLITICIANS SAY WILL CREATE

  • THE JOBS OF THE FUTURE?

  • [PRESIDENT BARACK OBAMA] THAT'S ONE OF THE REASONS

  • WHY WE'RE ACCELERATING THE TRANSITION

  • TO A CLEAN ENERGY ECONOMY

  • AND DOUBLING OUR USE OF RENEWABLE ENERGY SOURCES

  • LIKE WIND AND SOLAR POWER,

  • STEPS THAT HAVE THE POTENTIAL

  • TO CREATE WHOLE NEW INDUSTRIES

  • AND HUNDREDS OF THOUSANDS OF NEW JOBS IN AMERICA.

  • BUT HERE'S THE GRIM REALITY.

  • WE PRODUCE 4% OF THE WORLD'S GLOBAL OUTPUT OF SOLAR.

  • ONE OF THE THINGS HAPPENING IN THE MARKET RIGHT NOW

  • IS IT'S BEING SWAMPED BY LOW-COST MULTI-CRYSTALLINE

  • AND POLYCRYSTALLINE SILICONE SOLAR CELLS FROM CHINA.

  • WE DON'T MAKE COMPUTERS.

  • WE DON'T MAKE PRINTERS.

  • WE IMPORT 99% OF OUR SHOES.

  • MASS-PRODUCED CONSUMER PRODUCTS--

  • WE BASICALLY DON'T MAKE THEM ANYMORE.

  • BUT IT'S NOT JUST MASS-PRODUCED CONSUMER GOODS

  • WE ARE LOSING TO CHINA.

  • SOME OF OUR VERY BEST PAYING MANUFACTURING JOBS

  • ARE ALSO NOW QUITE LITERALLY BEING SHANGHAIED.

  • [MAN] BOEING, AT ITS PEAK IN THE SEATTLE-EVERETT AREA,

  • HAD ABOUT 50,000 EMPLOYEES.

  • THAT WAS NO MORE THAN FIVE YEARS AGO.

  • 20,000 OF THOSE JOBS

  • HAVE NOW MOVED TO CHINA IN JUST THE LAST FIVE YEARS.

  • [McCORMACK] APPLE EMPLOYS 26,000 PEOPLE

  • IN ITS DESIGN OF MAKING NEW PRODUCTS.

  • IT EMPLOYS, THROUGH FOXCONN,

  • 700,000 MANUFACTURING WORKERS IN CHINA.

  • THEY'RE AN AMERICAN COMPANY. THEY'RE HEADQUARTERED HERE.

  • ALL THEIR JOBS ARE SOMEWHERE ELSE.

  • AMERICANS NEED THOSE JOBS,

  • BUT THEY ALL EXIST IN CHINA.

  • EVERY ONE OF THOSE MANUFACTURING JOBS EXISTS IN CHINA.

  • THESE ARE JOBS THAT COULD VERY EASILY BE IN SILICON VALLEY,

  • IN OREGON, NORTHERN CALIFORNIA,

  • IN GENERAL ALONG THE COAST

  • FOR WHICH THERE ARE WELL-TRAINED AND VERY INTERESTED WOMEN AND MEN

  • WHO WOULD TAKE THEM IN A HEARTBEAT.

  • AND EVEN WHITE-COLLAR WORKERS

  • ARE NOW IN CHINA'S CROSS-HAIRS.

  • [MAN] THE WHITE COLLAR WORKER UNDERSTANDS

  • THAT CHINA IS NOW MOVING UP IN THE FEEDING FRENZY TO,

  • FOR EXAMPLE, SOFTWARE AND OTHER KINDS OF PRODUCTION.

  • THEY'RE MOVING AWAY FROM JUST PROCESS TECHNOLOGY

  • UP TO MORE REALLY INTELLECTUAL TECHNOLOGY.

  • NOW, IT'S NOT A VERY BIG PART OF THEIR ECONOMY,

  • BUT YOU CAN LOOK IN THE UNITED STATES.

  • IT'S HAVING A DEVASTATING EFFECT.

  • IF THE JOBS FOR PRODUCTION MOVE TO CHINA,

  • THE SUPPORT JOBS FOR WHITE COLLAR,

  • TO A BIG DEGREE, WILL MOVE TO CHINA.

  • MEANWHILE, OUR RAPIDLY ACCUMULATING CHINESE DEBT

  • HAS BECOME A NATIONAL JOKE, LITERALLY.

  • ...AND TO ALLOW THE U.S. GOVERNMENT TO DEFAULT. [AUDIENCE LAUGHING]

  • I'D SAY CHINA IS MAD AT PRESIDENT OBAMA

  • FOR MEETING WITH THE DALAI LAMA.

  • I MEAN, COME ON.

  • OBAMA DOESN'T OWE THEM ANYTHING.

  • EXCEPT LIKE $14 TRILLION.

  • AND THAT DEBT REPRESENTS A VERY REAL CLAIM

  • ON AMERICAN ASSETS.

  • ...AND THEN CHINA WOULD BACK A TOW TRUCK UP TO KANSAS

  • AND DRAG IT OFF TO GUANGDONG PROVINCE.

  • [AUDIENCE LAUGHING]

  • I FIND IT IRONIC THAT THE CORNER OF CAPITALISM,

  • THE J.P. MORGAN BUILDING DOWN ON WALL STREET,

  • IS NOW OWNED BY A CHINESE COMPANY.

  • AS FOR THAT HOPE

  • THAT ECONOMIC ENGAGEMENT

  • WOULD LEAD TO A MORE FREE AND DEMOCRATIC CHINA,

  • GEORGE BUSH, SENIOR.

  • REMEMBER HIM.

  • HE WAS THE AMBASSADOR TO CHINA WAY BACK WHEN.

  • AND SO HE LIKED CHINA.

  • HE LIKED THOSE GUYS OVER THERE.

  • THINGS ARE GOOD IN CHINA.

  • ECONOMIC GROWTH IN CHINA

  • HAS NOT LED TO ITS BECOMING MORE DEMOCRATIC.

  • IT HAS LED TO A MORE SOPHISTICATED,

  • BETTER-FINANCED FORM OF AUTHORITARIANISM.

  • AND IRONICALLY ONE OF THOSE MEASURES OF REPRESSION

  • HAS BEEN THE INTERNET ITSELF,

  • WHICH WAS SUPPOSED TO SET CHINA FREE.

  • [McCORMACK] CHINA IS LESS FREE TODAY

  • THAN IT WAS WHEN THEY ENTERED THE WTO.

  • CHINA HAS 50,000 INTERNET POLICE

  • WHO ARE TRACKING EVERY DAY THEIR CAPABILITIES,

  • WHO'S SAYING WHAT,

  • TO BE ABLE TO TRY AND KEEP THINGS LIKE TIANANMEN SQUARE,

  • DEMOCRACY, FREEDOM, AND THOSE TERMS

  • OFF THE INTERNET.

  • AND THESE CYBER COPS

  • HAVE HAD PLENTY OF HELP FROM AMERICAN COMPANIES

  • IN BUILDING THE GREAT FIREWALL OF CHINA.

  • [REP SMITH] GOOGLE, YAHOO, CISCO,

  • AND THE CAPABILITY THEY HAVE SOLD TO CHINA,

  • ESPECIALLY FOR ITS SECRET POLICE,

  • HAS ENABLED THEM TO SEARCH,

  • APPREHEND, DISCOVER THE WHEREABOUTS,

  • GET CACHES OF NAMES,

  • PARTICULARLY ONLINE

  • WHERE IF YOU SEND YOUR EMAILS TO OTHER PEOPLE,

  • THEIR IP ADDRESSES QUICKLY YIELD TO WHAT THEIR PHYSICAL ADDRESSES ARE,

  • AND THEY'RE THEN APPREHENDED AND ARRESTED.

  • PERHAPS THE MOST SHAMEFUL ANSWER TO THAT QUESTION

  • MAY BE FOUND IN YAHOO'S ROLE

  • IN THE JAILING OF A CHINESE CITIZEN NAMED SHI TAO.

  • HERE'S A GUY, A JOURNALIST,

  • WHO SENT INFORMATION TO AN NGO

  • ABOUT WHAT THEY COULDN'T SAY OR DO

  • AS THE TIANANMEN SQUARE REMEMBRANCE DAY WAS COMING UP

  • OR DAYS AND HE SENT IT TO A NEW YORK NGO.

  • THE CHINESE GOVERNMENT KNOCKED ON THE DOOR OF THE YAHOO PEOPLE,

  • ASKED FOR THE INFORMATION,

  • THEY JUST COUGHED IT RIGHT UP,

  • AND SHI TAO GOT TEN YEARS FOR THAT.

  • AS FOR THOSE FALUN GONG PRACTITIONERS

  • AND OTHER DISSIDENTS SINGLED OUT BY PRESIDENT CLINTON...

  • I HAD A HEARING ON THE FALUN GONG,

  • AND HOW THEY'RE THROWING THESE PEOPLE IN JAIL BY THE THOUSANDS,

  • AND THEY'RE HARVESTING ORGANS.

  • THE WAY IT WORKS IS THAT IF SOMEBODY GOES-- WANTS A LIVER, SAY,

  • THEY FLY TO SHANGHAI,

  • AND THEY PROBABLY GO CHECK INTO THE NUMBER ONE PEOPLE'S HOSPITAL IN SHANGHAI.

  • A MILITARY SURGEON, PROBABLY IN UNIFORM, ONE I'M THINKING OF,

  • COMES UP AND DOES THE [UNINTELLIGIBLE] TESTS

  • AND THE BLOOD TEST AND SO ON.

  • THEN HE-- HE OR SHE--

  • LOOKS ON THE COMPUTER LIST AND SAYS,

  • "OH, THERE'S A MATCH OUT IN WORK CAMP 400."

  • THE POOR VICTIM,

  • WHO MATCHES WHAT YOUR ORGANS NEED,

  • IS DRAGGED INTO A SORT OF HOSPITAL,

  • GIVEN A LIGHT ANESTHETIC IN MOST CASES,

  • AND NEVER WAKES UP

  • BECAUSE THEY TAKE NOT JUST ONE KIDNEY.

  • THEY TAKE BOTH KIDNEYS, THE LIVER, HEART, EVERYTHING,

  • AND THEIR BODY IS THEN BURNED,

  • AND THE PEOPLE'S LIBERATION ARMY

  • FLIES THE ORGAN TO SHANGHAI

  • FROM WHEREVER THE CAMP HAPPENS TO BE,

  • AND YOU'RE TOLD YOU'RE GETTING THE ORGAN

  • FROM A CONVICTED MURDERER OR SOMETHING.

  • I MEAN, THIS IS A GROTESQUE TALE

  • OF THE WORST KIND OF OPPRESSION AND GHOULISHNESS

  • ON THE PART OF RULERS OF A COUNTRY.

  • AND HERE IS WHAT TOO MANY AMERICAN POLITICIANS

  • SEEM TO HAVE SUCH A HARD TIME UNDERSTANDING.

  • WEI JINGSHENG TOLD ME, IN BEIJING RIGHT BEFORE HE GOT RE-ARRESTED,

  • "YOU AMERICANS DON'T UNDERSTAND.

  • "WHEN YOU CODDLE DICTATORSHIP,

  • "WHEN YOU KOWTOW AND YOU CARRY THE DICTATORSHIP AROUND ON A PILLOW,

  • "THEY BEAT US MORE IN THE LAOGAI.

  • "WHEN YOU'RE TOUGH, PREDICTABLE,

  • TRANSPARENT ON HUMAN RIGHTS, THEY BEAT US LESS."

  • BUT AT LEAST ENGAGING CHINA ECONOMICALLY

  • HAS MADE THE RULING COMMUNIST PARTY MORE PEACEFUL, RIGHT?

  • CHINA'S MILITARY POWER IS STRENGTHENING VERY, VERY RAPIDLY.

  • THEY ARE BUILDING UP THEIR MILITARY CAPABILITIES

  • IN HARD WEAPONS AS WELL AS IN CYBER SECURITY.

  • CHINA HAS A POPULATION WHICH IS ABOUT FIVE TIMES THE SIZE OF THE UNITED STATES,

  • AND THAT MEANS THAT IF THEY HAVE A COMPARABLE LEVEL OF DEVELOPMENT,

  • THEY PROBABLY WILL END UP WITH A MILITARY FIVE TIMES LARGER.

  • AND I DON'T CARE WHAT KIND OF TECHNOLOGICAL EDGE WE HAVE.

  • IT WOULD BE VERY DIFFICULT TO PREVAIL

  • OVER AN ADVERSARY THAT IS FIVE TIMES LARGER.

  • [REP. ROHRABACHER] WHAT CHINA IS BUILDING

  • IS JUST NOT A MASSIVE FLEET

  • OR A MASSIVE GROUND ARMY,

  • BUT IT'S DEVELOPING A MODERN, WELL-EQUIPPED,

  • TECHNOLOGICALLY CAPABLE MILITARY.

  • AND IN SOME CASES,

  • IT NEED NOT BE CHINA PULLING THE TRIGGER...

  • [MAN SPEAKING FARSI] ...MAHMOUD AHMADINEJAD!

  • ...OR LAUNCHING THE MISSILES, AS THE CASE MAY BE.

  • [RICHARD FISHER] WE ARE ON THE ONSET OF AN AGE OF NUCLEAR TERRORISM.

  • WE SEE PAKISTAN CRUMBLING

  • WHILE IT BUILDS MORE AND MORE NUCLEAR WEAPONS.

  • WHY DOES PAKISTAN HAVE NUCLEAR WEAPONS?

  • WHY DOES IT HAVE THE MISSILES TO DELIVER THEM?

  • BECAUSE OF CHINA.

  • WE'VE BEEN IN A NEAR 30-YEAR DIALOGUE

  • WITH THE CHINESE GOVERNMENT

  • TRYING TO ARREST THIS BEHAVIOR

  • THAT IS SUPPORTING NOT ONLY PAKISTAN'S,

  • BUT NORTH KOREA'S AND IRAN'S FUTURE NUCLEAR CAPABILITIES.

  • CHINA REFUSES TO LISTEN AND RESPOND.

  • WHEN A NUCLEAR BOMB GOES OFF ON SOME HIGHWAY

  • EITHER INSIDE OR OUTSIDE THE BELTWAY,

  • CHANCES ARE A LOT OF THOSE COMPONENTS ON THAT BOMB

  • ARE GOING TO SAY MADE IN CHINA.

  • I HAD MY CHILDREN'S THOMAS THE TRAIN SETS RECALLED

  • BECAUSE OF THE INK ON THE RED ONES WAS LEAD POISONED.

  • THEY'RE NOT ONLY RUINING OUR ECONOMY.

  • THEY'RE POISONING OUR CHILDREN WITH THE TOYS THAT WE GIVE THEM.

  • I WANT TO BE CAREFUL ABOUT WHAT PRODUCTS I BUY

  • BECAUSE I WANNA KNOW THAT THEY'RE SAFE AND THEY'RE GOOD.

  • I WANT TO BE CAREFUL ABOUT WHAT PRODUCTS I BUY

  • BECAUSE I WANNA MAKE SURE THAT THE PEOPLE WHO ARE PRODUCING THOSE

  • ARE BEING TREATED PROPERLY.

  • AND I WANT TO BE CAREFUL ABOUT THE PRODUCTS I BUY

  • BECAUSE I WANNA MAKE SURE

  • THAT THE PEOPLE IN MY COMMUNITY

  • ARE PEOPLE WHO ARE ABLE TO HAVE JOBS AT A DECENT WAGE.

  • AND ALL OF THOSE THINGS ARE TIED TOGETHER.

  • [PETER NAVARRO] EVERY TIME A CONSUMER WALKS INTO A WAL-MART,

  • THE FIRST THING THEY HAVE TO DO

  • IS TO BE AWARE ENOUGH TO LOOK FOR THE LABEL.

  • THEN, WHEN THEY PICK UP THAT GOOD AND IT SAYS "MADE IN CHINA,"

  • I WANT THEM TO THINK,

  • HMPH. IT MIGHT EITHER BREAK DOWN OR IT COULD KILL ME, NUMBER ONE.

  • THIS THING, IF I BUY IT,

  • MIGHT COST ME OR SOMEONE IN MY FAMILY OR MY FRIENDS THEIR JOB.

  • LASTLY, HEY, IF I BUY THIS,

  • THAT MONEY IS GOING TO GO OVER TO HELP FINANCE

  • WHAT IS ESSENTIALLY THE MOST RAPID MILITARY BUILDUP

  • OF A TOTALITARIAN REGIME SINCE WHEN?

  • THE '30s.

  • I MEAN, MAKE NO MISTAKE ABOUT THAT.

  • 91% OF EVERY PRODUCT IN A WAL-MART STORE

  • IS MANUFACTURED IN CHINA.

  • WAL-MART SPENT $50 BILLION IN CHINA TWO YEARS AGO.

  • IF WAL-MART WERE A COUNTRY,

  • THEY WOULD BE CHINA'S FOURTH LARGEST TRADING PARTNER.

  • WHEN AN AMERICAN GOES INTO A WAL-MART

  • AND BUYS A PRODUCT MADE IN CHINA,

  • THAT PERSON IS THINKING JUST PRICE.

  • IF YOU'RE A PERSON ON A PENSION

  • SHOPPING AT WAL-MART,

  • YOU KINDA LIKE THE GREAT WALL OF MART.

  • BUT WHAT THEY REALLY NEED TO THINK ABOUT

  • IS HOW THAT PRODUCT GOT THERE.

  • IT GOT THERE BECAUSE YOU HAVE A PREDATORY SYSTEM

  • WHICH IS REALLY TRYING TO UNDERCUT AMERICAN MANUFACTURERS

  • AND THEREFORE AMERICAN WORKERS.

  • [INTERVIEWER] AND WHEN CONSUMER GOES INTO WAL-MART

  • AND PICKS UP A GOOD MADE IN CHINA,

  • WHAT DO YOU WANT THEM TO THINK ABOUT

  • BEFORE THEY GET TO THE CASH REGISTER?

  • THINK ABOUT YOUR RELATIVE THAT JUST GOT LAID OFF

  • OR THE FACTORY THAT JUST GOT SHUT DOWN.

  • THINK ABOUT THE SCHOOL

  • THAT IS DOING WITH LESS

  • BECAUSE THE MANUFACTURING BASE

  • HAS GONE AND THE TAX BASE HAS LEFT.

  • THINK ABOUT THE LOWER INCOME THAT YOU'RE RECEIVING NOW

  • BECAUSE WE'RE NOT MAKING PRODUCTS,

  • AND WE'RE NOT BUYING OUR OWN PRODUCTS.

  • WHEN AMERICANS BUY A PRODUCT FROM WAL-MART,

  • I WANT THEM TO REMEMBER THE CHILDREN, THE FAMILY,

  • THE WORKERS WHO HAS EARNED VERY, VERY LITTLE

  • FROM THOSE PRODUCTS.

  • THIS IS NOT JUST AN ECONOMIC MATTER.

  • THIS IS A SECURITY MATTER

  • BECAUSE THE CHINESE GOVERNMENT HAS MADE IT CLEAR

  • THAT IT WANTS TO UNDERMINE AMERICA'S ROLE IN THE WORLD.

  • SO, YEAH, THINGS ARE CHEAP AT WAL-MART,

  • BUT WE HAVE TO UNDERSTAND THE CONSEQUENCES.

  • BUT EVEN IF YOU DON'T WANT TO CONSIDER

  • THE BROADER ECONOMIC

  • OR NATIONAL SECURITY CONSEQUENCES

  • OF CONSUMING GOODS MADE IN CHINA,

  • YOU MAY AT LEAST WANT TO THINK ABOUT YOUR OWN PERSONAL SAFETY

  • AND THAT OF YOUR FAMILY.

  • [MORICI] IF YOU PUT IT IN YOUR MOUTH OR THE HANDS OF A CHILD,

  • DON'T BUY IT FROM CHINA.

  • OVER THE LAST FIVE YEARS,

  • WE'VE HAD A NUMBER OF SCANDALS INVOLVING CHINESE PRODUCTS.

  • AND THESE PRODUCTS HAVE KILLED PEOPLE NOT ONLY IN CHINA,

  • BUT ALSO IN THE UNITED STATES.

  • DO YOU WANT TO BUY PIPE FOR YOUR RESIDENTIAL COMMUNITY

  • THAT'S GOING TO PUT ALL THE WATER INTO EVERYBODY'S HOUSES

  • THAT IS TAINTED WITH ARSENIC AND MERCURY

  • SO THAT IT'LL LEACH OUT INTO YOUR WATER

  • SO THAT WHEN YOU TURN ON YOUR SPIGOT IN YOUR HOUSE,

  • YOU'RE SUDDENLY, YOU KNOW, CONTAMINATING YOURSELF

  • BECAUSE THAT PIPE WAS MADE CHEAPER IN CHINA?

  • GOODYEAR TIRE OUTSIDE OF MONTREAL,

  • IT CLOSED ABOUT FOUR YEARS AGO

  • AND PUT 850 PEOPLE OUT OF WORK,

  • MOVED THE PRODUCTION TO CHINA

  • BECAUSE THEY COULD MAKE TIRES, I THINK, IT WAS FOR $4 A TIRE CHEAPER

  • AND NOT LONG AFTER THEY STARTED UP IN CHINA,

  • THE TRANSPORTATION AGENCY IN THE U.S.

  • SAID THE TIRES BEING PRODUCED THERE WERE UNSAFE.

  • I MEAN, IS THIS WHAT CORPORATE AMERICA OR CORPORATE CANADA

  • THINKS IS THE WAY THEY SHOULD BE CONDUCTING THEMSELVES?

  • I DON'T THINK SO.

  • WE'RE IMPORTING A LOT OF THEIR APPLES.

  • THEY SPRAY THEM WITH ALAR, YOU KNOW.

  • THAT'S ILLEGAL IN THE UNITED STATES.

  • YOU WANT DDT ON YOUR APPLE?

  • BUY IT FROM CHINA,

  • AND WE'RE BUYING A LOT OF APPLES FROM CHINA.

  • WE'RE BUYING EVERYTHING FROM CHINA,

  • AND THEY'RE NO ENVIRONMENTAL CONTROLS.

  • [WOMAN] THERE IS A RISK OF SUFFOCATION,

  • THAT KIDS CAN GET TRAPPED AND DIE.

  • [WOMAN #2] THEY TOOK HIM TO THE HOSPITAL WHERE THEY PRONOUNCED HIM DEAD.

  • [WOMAN #3] ...MASSIVE RECALL OF A MILLION OF MATTEL'S FISHER-PRICE TOYS.

  • A RECENT BATCH MADE IN CHINA

  • CONTAINS TOXIC LEVELS OF LEAD PAINT.

  • [MAN] THE EYES OF THOSE TEDDY BEARS CAN LOOSEN AND FALL OUT,

  • IMPOSING A CHOKING HAZARD TO YOUNG CHILDREN.

  • [MAN #2] ACCORDING TO THE STATE MEDIA,

  • DOZENS OF BABIES HAVE DEVELOPED KIDNEY STONES IN RECENT DAYS.

  • [MAN] THOUSANDS OF PETS ACROSS THE COUNTRY

  • DIED AFTER EATING TAINTED PET FOOD.

  • THAT LED TO A MASSIVE PET FOOD RECALL.

  • [MAN #3] MY WIFE BONNIE DIED IN DECEMBER

  • AFTER RECEIVING HEPARIN THAT WAS LATER RECALLED BY BAXTER.

  • MY SON RANDY DIED A MONTH LATER

  • UNDER THE SAME CIRCUMSTANCES.

  • [WOMAN #4] SOME BRANDS HAVE BEEN FOUND

  • TO CONTAIN A TOXIC CHEMICAL USED IN ANTIFREEZE.

  • [MAN #4] PORK FROM PIGS FORCE-FED WASTEWATER.

  • [MAN #5] IF IT COMES FROM CHINA,

  • AND THE PRICE IS TOO GOOD TO BE TRUE,

  • THEN IT PROBABLY IS.

  • IT IS VERY DIFFICULT

  • FOR ANY COUNTRY

  • TO PROTECT THEIR CITIZENS FROM CHINESE PRODUCTS.

  • THE REAL PROBLEM HERE

  • IS THAT YOU HAVE A POLITICAL SYSTEM

  • THAT DOES NOT PUNISH MANUFACTURERS FOR BAD PRODUCTS.

  • AND IT'S BECAUSE IT'S THE NATURE OF THE POLITICAL SYSTEM.

  • THE COMMUNIST PARTY DOES NOT ALLOW INDEPENDENT PROSECUTORS,

  • DOESN'T ALLOW A FREE PRESS,

  • DOESN'T ALLOW PEOPLE TO COMPLAIN ABOUT BAD PRODUCTS.

  • LET'S TAKE FISH.

  • THERE ARE 3.5 MILLION FISH FARMS IN CHINA.

  • THE FISH ARE RAISED IN CONTAMINATED PONDS.

  • THEY ARE FED ALL KINDS OF HORMONES,

  • AND THE BIGGEST MARKET FOR THAT FISH

  • IS THE UNITED STATES.

  • 85% OF THE TILAPIA COMES FROM CHINA.

  • MOST OF OUR SHRIMP COMES FROM CHINA.

  • U.S. FDA ONLY HAS THE ABILITY

  • TO INSPECT ONE PERCENT OF THE FISH COMING INTO THE UNITED STATES.

  • 65% PERCENT OF THE ONE PERCENT THEY REJECT.

  • THEY DON'T HAVE THE AUTHORITY TO CONFISCATE THE FISH,

  • SO IF THE SHIP COMES INTO CHARLESTON AND GETS REJECTED,

  • THEN IT GOES TO MIAMI OR NEW ORLEANS

  • OR SOME OTHER PORT

  • AND EVENTUALLY THE FISH GETS IN.

  • AND BECAUSE OF SUCH DANGERS,

  • AMERICANS ARE BECOMING MORE AND MORE AWARE

  • OF THE MADE-IN-CHINA LABEL

  • BUT THAT DOESN'T ALWAYS GUARANTEE ONE'S SAFETY,

  • OR CONVENIENCE.

  • I PERSONALLY DO LOOK AT THE LABELS OF WHERE THINGS ARE MADE,

  • BUT SOMETIMES I GO TO BUY THINGS,

  • AND IT'S IMPOSSIBLE TO FIND SOMETHING

  • THAT ISN'T MADE IN CHINA.

  • WELL, MY WIFE'S A GOOD CARD-CARRYING LIBERAL.

  • SHE BELIEVES IN ALL THE WORTHY CAUSES IN THE WORLD

  • AND ALL THAT SORT OF THING,

  • AND SHE'S AN INTELLIGENT WOMAN I WANT TO SAY

  • FOR THE RECORD.

  • LITTLE BY LITTLE I REALIZED

  • THAT CHINA WAS GETTING TO WHERE IT WAS

  • AND THE UNITED STATES WAS GETTING TO WHERE IT WAS

  • BECAUSE THERE WAS ALL THIS CURRENCY MANIPULATION,

  • AND IT JUST SEEMED LIKE THE UNITED STATES GOVERNMENT

  • WAS NOT DOING A WHOLE LOT

  • IN THE NAME OF INTERNATIONAL TRADE

  • TO TRY TO STOP WHAT WAS GOING ON IN CHINA,

  • WHICH WAS ABLE TO LURE A LOT OF JOBS.

  • SOME MONTHS AGO,

  • SHE DECIDED TO THE BEST OF HER ABILITY,

  • SHE WASN'T GOING TO BUY ANYTHING MADE IN CHINA.

  • SO OUR MICROWAVE OVEN FAILED.

  • WE DON'T HAVE A NEW MICROWAVE OVEN

  • BECAUSE SHE COULD NOT FIND ONE THAT WAS NOT MADE IN CHINA.

  • WHEN I WENT TO LOOK FOR A MICROWAVE OR FREE-STANDING MICROWAVE,

  • THERE WAS NOTHING THAT WASN'T MADE IN CHINA.

  • I WENT TO FIVE DIFFERENT STORES

  • FROM HIGH-END HARDWARE STORES TO LOW-END DISCOUNT PLACES.

  • NOTHING WAS AVAILABLE THAT WASN'T MADE IN CHINA,

  • AND MY EXPERIENCE WITH THINGS MADE IN CHINA

  • WAS THAT THEY WEREN'T HEALTHY,

  • YOU NEVER KNEW WHAT WAS IN THEM,

  • THEY DIDN'T WORK FOR VERY LONG,

  • AND THEY BROKE DOWN IF THEY WORKED IN THE BEGINNING.

  • SO I THEN DECIDED

  • I JUST WASN'T GOING TO BUY ANYTHING THAT WAS MADE IN CHINA.

  • SO WE JUST DO NOT HAVE A MICROWAVE ANYMORE.

  • RIGHT AROUND THE SAME TIME,

  • WE HAD AN UNDER-A-COUNTER ELECTRIC UNIT FOR HEATING

  • IN ONE OF THE ROOMS

  • AND THE SAME THING HAPPENED.

  • YOU COULDN'T GET ANY ELECTRIC BASEBOARD

  • THAT WASN'T MADE IN CHINA.

  • AND I THOUGHT WELL MY LAST ONE WAS MADE IN AMERICA.

  • I HAD IT FOR 23 YEARS. IT WORKED GREAT.

  • NOW I COULDN'T FIND IT.

  • AND I JUST GOT COMPLETELY DISCOURAGED

  • THAT NO AMERICAN MANUFACTURERS

  • WERE COMING IN TO PRODUCE QUALITY PRODUCTS OVER HERE.

  • AND THAT'S THE DILEMMA WE NOW FIND OURSELVES IN.

  • AS CHINA HAS USED ITS WEAPONS OF JOB DESTRUCTION

  • TO SO THOROUGHLY CAPTURE OUR MARKETS,

  • WE ARE LEFT WITH FEW CHOICES OTHER THAN TO BUY FROM CHINA.

  • BUT THE MORE WE BUY FROM CHINA,

  • THE MORE RISKS OUR FAMILIES FACE

  • FROM DANGEROUS CHINESE PRODUCTS.

  • AND THE MORE JOBS WE LOSE.

  • AND BECAUSE THIS IS TRUE,

  • WE NOW MUST ALSO CONFRONT THIS MUCH BIGGER TRUTH.

  • [MAN] WE IMPORT A LOT OF STUFF FROM CHINA,

  • BUT A LOT OF IT WE DON'T PAY FOR.

  • I MEAN, WE'VE GOT NO GOODS TO SHIP IN THE OPPOSITE DIRECTION,

  • SO WE JUST SHIP BUNDLES OF DOLLAR BILLS,

  • BETWEEN TWO AND THREE TRILLION DOLLARS IS AVAILABLE

  • TO BUY UP PIECES OF AMERICA.

  • IN OTHER WORDS, WE'RE LIVING BEYOND OUR MEANS.

  • WE HAVE AN ARTIFICIALLY HIGH STANDARD OF LIVING.

  • WE'RE CONSUMING MORE THAN WE CREATE.

  • THAT'S A VERY DANGEROUS SITUATION,

  • AND ESPECIALLY IF YOUR PRINCIPLE CREDITOR

  • IS A NATION LIKE CHINA.

  • SO JUST EXACTLY HOW DID WE IN AMERICA

  • ALLOW OURSELVES TO BE BACKED INTO SUCH A DANGEROUS CHINESE CORNER?

  • WHEN YOU LIVE IN A DEMOCRACY,

  • IT'S ALWAYS SUBJECTED TO BEING HIJACKED,

  • AND OUR DEMOCRACY HAS BEEN HIJACKED

  • BY THE MULTINATIONAL CORPORATIONS.

  • THE CORPORATE RESPONSIBILITY IS TO ITS SHAREHOLDERS,

  • AND IT OFTEN HAS A LEGAL FIDUCIARY RESPONSIBILITY

  • TO ITS SHAREHOLDERS.

  • THE GOVERNMENT HAS A RESPONSIBILITY

  • TO THE PEOPLE AND THE NATIONAL INTEREST.

  • THOSE ARE NOT NECESSARILY THE SAME.

  • U.S. MULTINATIONAL CORPORATIONS

  • KNEW EXACTLY WHAT WAS GOING TO HAPPEN.

  • THEY DIDN'T HAVE ANY PLANS

  • TO INCREASE EXPORTS TO CHINA

  • AFTER CHINA JOINED THE WTO.

  • THEY HAD PLANS TO MOVE PRODUCTION TO CHINA,

  • BUT THEY WERE, I'D SAY, DISHONEST OR DISINGENUOUS

  • BECAUSE THE WHOLE RHETORIC AROUND CHINA JOINING THE WTO

  • WAS ABOUT FREE TRADE AND OPENING MARKETS AND ENGAGING WITH CHINA.

  • FOR THE FIRST TIME, OUR COMPANIES

  • WILL BE ABLE TO SELL AND DISTRIBUTE PRODUCTS IN CHINA

  • MADE BY WORKERS HERE IN AMERICA.

  • WHEN IN FACT IT WAS REALLY SELF-INTEREST AND PROFIT MOTIVE

  • ON THE PART OF U.S. MULTINATIONALS

  • THAT DROVE THAT DEBATE.

  • AND U.S. CHINA COMMISSIONER AND BUSINESSMAN DAN SLANE

  • KNOWS FIRSTHAND

  • JUST HOW THIS OFFSHORING SHELL GAME IS WORKING,

  • SINCE CHINA JOINED THE WORLD TRADE ORGANIZATION IN 2001

  • AND BEGAN FLOODING AMERICAN MARKETS

  • WITH ILLEGALLY SUBSIDIZED EXPORTS.

  • I HAD A PLYWOOD MANUFACTURING FACILITY IN BOWLING GREEN, KENTUCKY,

  • SELLING PLYWOOD TO FURNITURE MANUFACTURERS IN THE UNITED STATES.

  • IN 2002, ALL OF MY COMPETITORS WERE MOVING TO CHINA.

  • ESSENTIALLY, I HAD TWO CHOICES--

  • I SHUT THE COMPANY DOWN, OR I MOVED IT TO CHINA.

  • AND I OPENED UP THREE FACTORIES IN CHINA

  • AND DELIVERED TO THE CUSTOMER IN THE UNITED STATES 50% CHEAPER

  • THAN I COULD MAKE IT IN BOWLING GREEN.

  • AND SLANE'S NEW FOUND COMPETITIVE EDGE

  • WAS ALL DUE TO CHINA'S ILLEGAL WEAPONS OF JOB DESTRUCTION.

  • MANIPULATING THE CURRENCY

  • WAS A HUGE HELP FOR ME,

  • BECAUSE IT KEPT OUR PRICES DOWN.

  • I HAD NO ENVIRONMENTAL ISSUES;

  • AND THE MOST IMPORTANT THING

  • WAS THAT I COULD SELL MY PRODUCT AT COST

  • AND EVERY MONTH THE CHINESE GOVERNMENT

  • WOULD SEND ME A CHECK FOR 17% OF MY EXPORTS,

  • AND THAT WAS MY NET MARGIN AND MY PROFIT.

  • SO WAS SLANE WRONG TO OFFSHORE HIS FACTORIES TO CHINA?

  • THIS INTERCHANGE

  • WITH U.S. CHINA COMMISSIONER AND MULTINATIONAL CORPORATION LOBBYIST WILLIAM REINSCH

  • OFFERS SOME PERSPECTIVE:

  • IT'S NOT GENERALLY REGARDED

  • AS THE JOB OF A LARGE AMERICAN COMPANY TO SUBSTITUTE ITSELF

  • FOR THE GOVERNMENT.

  • WHAT MOST OF THE COMPANIES WANT TO DO

  • IS TO-- THEY WANT TO BE CONSISTENT WITH GOVERNMENT--

  • WITH U.S. LAW AND U.S. PRACTICE.

  • IF THE GOVERNMENT TELLS THEM THAT THEY WOULD LIKE THEM TO DO SOMETHING,

  • THEY GENERALLY DO IT.

  • [INTERVIEWER] SO THEY DON'T HAVE ANY RESPONSIBILITY PER SE

  • TO THE AMERICAN PEOPLE

  • OTHER THAN OBEYING THE EXISTING LAWS AND REGULATIONS.

  • IS THAT FAIR?

  • WELL, WHAT RESPONSIBILITY WOULD YOU LIKE THEM TO HAVE TO THE AMERICAN PEOPLE

  • OTHER THAN TRYING TO BE GOOD CORPORATE CITIZENS

  • AND TO BE PROFITABLE?

  • WOULD YOU DEFINE A GOOD CORPORATE CITIZEN

  • AS A COMPANY THAT MOVES ITS FACTORIES OVER TO CHINA

  • AND CREATES MASSIVE UNEMPLOYMENT IN THE MIDWEST?

  • IS THAT GOOD CORPORATE CITIZENRY?

  • WELL, I THINK THAT YOU'D HAVE TO ASK--

  • YOU'D HAVE TO LOOK AT-- YOU'D HAVE TO GO CASE BY CASE.

  • AND IN DAN SLANE'S CASE?

  • THE DIFFERENCE BETWEEN MYSELF AND GENERAL ELECTRIC

  • IS THAT I HAD NO CHOICE.

  • I EITHER MOVE TO CHINA, OR I SHUT THE COMPANY DOWN.

  • I COULDN'T COMPETE.

  • JEFF IMMELT AT GENERAL ELECTRIC

  • DOES HAVE A CHOICE.

  • HE CAN SACRIFICE SOME PROFITS,

  • KEEP HIS TECHNOLOGY, AND IN THE LONG TERM

  • BE MUCH BETTER OFF MANUFACTURING IN THE UNITED STATES.

  • CONGRESSMAN TIM RYAN

  • UNDERSTANDS THIS DISTINCTION

  • BETWEEN SMALL DOMESTIC MANUFACTURERS

  • AND THE BIG, WELL-HEELED MULTINATIONALS

  • BETTER THAN MOST.

  • THERE'S A HUGE DIVIDE HERE

  • BETWEEN THE MOM AND POP TOOL AND DIE MAKER

  • THAT HAS BEEN IN YOUNGSTOWN, OHIO

  • FOR A HUNDRED YEARS

  • AND THE GLOBAL CORPORATION

  • THAT'S INVOLVED IN THE GLOBAL FINANCING OF ALL OF THIS STUFF,

  • THE GLOBAL MANUFACTURING,

  • AND NOT REALLY CONCERNED WITH ANY ONE COUNTRY.

  • THEY'RE CONCERNED WITH HOW THEY CAN BEST DO BUSINESS.

  • AND ONE OF THE BIGGEST OBSTACLES

  • TO PASSING TOUGH LEGISLATION

  • THAT WOULD STOP CHINA'S UNFAIR TRADE PRACTICES

  • IS THE LACK OF POLITICAL CLOUT

  • OF AMERICA'S DOMESTIC MANUFACTURERS.

  • AND TO GO CHASING DOWN AFTER ALL OF THE POLITICAL RHETORIC

  • OF DEALING WITH THIS ISSUE AND THAT ISSUE

  • AND RUNNING TO ALBANY OR RUNNING TO WASHINGTON, D.C.

  • AND SETTING UP MEETINGS AND STUFF,

  • IT'S TOO COSTLY, IT'S TOO TIME-CONSUMING,

  • AND IT HAS NOTHING TO DO WITH BUILDING DRUM-AND BARREL-HANDLING EQUIPMENT

  • AND HELPING THIS COMPANY TO BE SUCCESSFUL.

  • AND THAT'S THE ISSUE HERE.

  • THEY DON'T HAVE LOBBYISTS DOWN HERE.

  • THERE'S VERY FEW ORGANIZATIONS

  • THAT REALLY REPRESENT

  • THE SMALL AND MID-SIZED MANUFACTURERS.

  • I CAN THINK OF ONE OR TWO

  • THAT REALLY DO A GREAT JOB,

  • BUT THEY DON'T HAVE THE IMPACT,

  • THE CAMPAIGN CONTRIBUTIONS,

  • THE CORPORATE INFLUENCE

  • THAT SOME OF THE BIG DOGS HAVE.

  • AND JUST WHO IS ONE OF THE BIGGEST DOGS

  • ON THE CAPITOL HILL LOBBYING BLOCK?

  • BEHIND ME IS THE HEADQUARTERS

  • OF THE NATIONAL ASSOCIATION OF MANUFACTURERS,

  • WHICH UNFORTUNATELY HAS BECOME A MAJOR MISNOMER IN RECENT YEARS,

  • BECAUSE THE NAME REALLY SHOULD BE

  • THE NATIONAL ASSOCIATION OF MANUFACTURING THINGS SOMEPLACE ELSE.

  • IF YOU GO BACK AND YOU LOOK

  • AT THE NATIONAL ASSOCIATION OF MANUFACTURERS' MEETINGS

  • IN WHICH THEY WERE TALKING ABOUT

  • ENDORSING OR NOT ENDORSING THE RYAN-MURPHY CHINA CURRENCY BILL,

  • YOU WILL SEE THAT THERE WAS A HUGE SPLIT

  • WHERE THE SMALL AND MEDIUM-SIZED MANUFACTURERS ENDORSED THE BILL.

  • BUT THE 20% OF THE MEMBERSHIP

  • THAT GIVES 80% OF THE DUES

  • DIDN'T WANT TO HAVE ANYTHING TO DO WITH THE RYAN-MURPHY CHINA CURRENCY BILL.

  • BRIAN O'SHAUGHNESSY

  • IS THE CHAIRMAN OF REVERE COPPER,

  • A COMPANY FOUNDED BY NONE OTHER THAN PAUL REVERE

  • AND THE OLDEST MANUFACTURER IN AMERICA.

  • AND O'SHAUGHNESSY HAS BEEN ON THE INSIDE

  • OF THE NATIONAL ASSOCIATION OF MANUFACTURERS

  • WHEN IT HAS OPPOSED BILLS LIKE THOSE OFFERED UP BY TIM RYAN

  • TO STOP CHINA'S CURRENCY MANIPULATION.

  • I STOOD UP BEFORE A GROUP

  • OF 300 OF THE MOST POWERFUL CEOs

  • IN THIS COUNTRY,

  • AND I TOLD THEM,

  • AS WE CONSIDER N-A-M SUPPORT OF THIS BILL,

  • I THINK THOSE OF YOU WHO HAVE FACILITIES IN CHINA,

  • I THINK YOU SHOULD RECUSE YOURSELF FROM VOTING.

  • YOU'RE CONFLICTED.

  • YOU HAVE TO CHOOSE BETWEEN YOUR COMPANY AND YOUR COUNTRY,

  • AND YOU CAN'T DO THAT.

  • WELL, I WAS SHOT DOWN IN FLAMES.

  • BY ALL INTENTS AND PURPOSES,

  • A LOT OF THESE COMPANIES ARE NOT AMERICAN COMPANIES ANYMORE.

  • [SLANE] GENERAL MOTORS TAKES TARP MONEY

  • AND OPENS UP FACTORIES IN CHINA.

  • CATERPILLAR TRACTOR

  • SHUTS DOWN PLANTS IN PEORIA

  • AND OPENS UP THREE FACTORIES IN CHINA.

  • GENERAL ELECTRIC AND BOEING

  • ARE ESSENTIALLY TRYING TO BECOME CHINESE COMPANIES.

  • LOOK AT COCA-COLA.

  • AMERICAN-SOUNDING COMPANY, ISN'T IT?

  • HOW AMERICAN CAN YOU GET OTHER THAN REVERE OR COCA-COLA?

  • THE PRESIDENT OF COCA-COLA IS FROM SOUTH AFRICA.

  • THE CHAIRMAN IS FROM TURKEY.

  • NOW, YOU WANNA ASK THEM

  • WHAT AMERICA'S INTERNATIONAL TRADE POLICY SHOULD BE?

  • YOU SHOULDN'T LISTEN TO THEM.

  • WHILE COCA COLA'S EXECUTIVE SUITE MAY LOOK LIKE THE UNITED NATIONS,

  • IT IS PURE BRED AMERICAN CEOs

  • FROM COMPANIES LIKE CISCO, FORD, IBM,

  • HONEYWELL, MOTOROLA, INTEL,

  • AND APPLE

  • THAT KEEP SENDING SO MANY OF OUR JOBS TO CHINA.

  • [MCCORMACK] WE DESIGN THE iPAD. GREAT.

  • WE GET THE PROFITS FROM THE iPAD. FINE.

  • WE DON'T GET THE JOBS.

  • PROFITS VERSUS JOBS.

  • THAT'S A CONFLICT RALPH GOMORY SEES

  • AS THE ROOT OF AMERICA'S OFFSHORING PROBLEM.

  • THEY ARE PURSUING MAXIMIZING PROFIT. THAT'S THEIR GOAL.

  • THE COUNTRY IS LOSING THE WAGE BILL.

  • AND ITS GOAL IS TO HAVE WAGES.

  • WHAT THEY'RE DOING IS RIGHT FOR THEIR SHAREHOLDERS

  • AND THEIR CONSTITUENTS,

  • BUT IT'S NOT RIGHT FOR THE PEOPLE OF AMERICA

  • WHO ARE UNABLE TO FIND WORK TODAY.

  • THE PROBLEM WITH OUR SYSTEM

  • IS THAT IT IS EVERYTHING IS SHORT TERM

  • SO WHEN YOU TALK TO A CEO

  • AND YOU SAY TO A CEO, AN AMERICAN CEO,

  • "DO YOU REALIZE THAT THEY'RE GOING TO TAKE YOUR TECHNOLOGY

  • AND THEY'RE GOING TO BE YOUR COMPETITOR?"

  • THE CEO SAYS,

  • "YES, BUT I ONLY HAVE THREE OR FOUR YEARS TO GET MY STOCK UP

  • SO I CAN GET MY BONUS,"

  • AND THEY KICK THE CAN DOWN THE ROAD,

  • AND IT'S THE NEXT GUY'S PROBLEM.

  • THIS WILL END BADLY FOR ALL OF US,

  • BUT EVERYBODY IS SO SHORT TERM IN THINKING

  • AND IN THEIR TENURE

  • THAT THEY'RE WILLING TO TAKE CHANCES

  • THAT ARE RIGHT FOR TODAY

  • THAT THEY PROBABLY KNOW IN THEIR MINDS

  • IS LONG TERM BAD FOR AMERICA TOMORROW.

  • IRONICALLY,

  • NOBODY UNDERSTOOD THIS GROWING DIVERGENCE

  • BETWEEN CORPORATE INTERESTS AND THE COMMON GOOD

  • BETTER THAN CANDIDATE BILL CLINTON

  • DURING THE 1992 ELECTIONS.

  • YOU MUST DO YOUR PART.

  • YOU MUST BE RESPONSIBLE.

  • AMERICAN COMPANIES MUST ACT LIKE AMERICAN COMPANIES AGAIN,

  • EXPORTING PRODUCTS NOT JOBS.

  • BUT SUCH CORPORATE IRRESPONSIBILITY

  • WASN'T ALWAYS THE AMERICAN WAY.

  • CORPORATIONS USED TO THINK THEY HAD A STAKEHOLDER THEORY.

  • IN OTHER WORDS, THEY HAD A RESPONSIBILITY TO THE NATION,

  • TO THEIR COMMUNITY, TO THEIR WORKERS,

  • AND TO THEIR SHAREHOLDERS.

  • SOMETHING MORPHED IN OUR OWN SYSTEM ABOUT 20, 25 YEARS AGO

  • WHERE SHAREHOLDER VALUE BECAME THE END-ALL AND BE-ALL,

  • AND THEN THE CEOs TIED THEIR OWN COMPENSATION

  • TO SHAREHOLDER VALUE,

  • AND THEN OTHER COUNTRIES

  • FIGURED OUT HOW TO INCENTIVIZE THEM

  • TO INCREASE SHORT-TERM SHAREHOLDER VALUE

  • BY TRANSFERRING PRODUCTION, MANUFACTURING, R&D THERE.

  • AND WE CAN NEVER FORGET

  • THAT WHEN CHINA MANIPULATES CURRENCY,

  • WHEN CHINA PROVIDES ILLEGAL SUBSIDIES OF ALL SORTS

  • FOR MANUFACTURING,

  • FOR THE ACT OF EXPORTING ITSELF,

  • THESE U.S.-OWNED COMPANIES BENEFIT.

  • THEY LIKE THE STATUS QUO,

  • THEY WANT TO PROTECT IT,

  • AND THEY HAVE PAID A LOT OF MONEY FOR IT.

  • MONEY AND THE POWER OF AMERICA'S MULTINATIONAL CORPORATIONS

  • IN INFLUENCING CHINA TRADE POLICY--

  • THAT'S SOMETHING TWO MEN FROM TWO DISTINCTLY DIFFERENT WORLDS

  • CAN AGREE ON.

  • I LIVE IN THAT WORLD.

  • I'VE WATCHED THOSE DOLLARS GO.

  • CAMPAIGN LAWS ALLOW THEM

  • TO SPEND UNLIMITLESS AMOUNTS OF MONEY.

  • IT'S A TSUNAMI.

  • BUT TO FORMER WHITE HOUSE ADVISOR JARED BERNSTEIN,

  • IT'S MORE THAN JUST MONEY AND POLITICS DRIVING OUR JOBS OFFSHORE.

  • IT'S ALSO THE PREVAILING FREE MARKET VIEW

  • IN THE OVAL OFFICE,

  • REGARDLESS OF POLITICAL PARTY.

  • I THINK THAT THERE IS A DEEPLY EMBEDDED VIEW

  • THAT I DO NOT THINK IS WHOLLY WRONG,

  • THAT CAPITAL MUST BE HAPPY

  • IF WE ARE GOING TO HAVE A SUCCESSFUL ECONOMY.

  • AND NO MULTINATIONAL COMPANY

  • HAS BEEN HAPPIER TO MOVE ITS CAPITAL OFFSHORE

  • THAN GENERAL ELECTRIC,

  • BUT THIS IS TRULY A FOOL'S GAME.

  • [SLANE] THE CHINESE HAVE NO INTENTION

  • OF TURNING OVER THEIR DOMESTIC MARKET

  • TO FOREIGN COMPANIES.

  • ONCE THEY'RE ABLE TO MASTER THE TECHNOLOGY,

  • THEY ARE GOING TO MAKE IT VERY DIFFICULT

  • FOR FOREIGN CORPORATIONS TO MAKE A PROFIT.

  • WHEN I GO OUT AND DO SPEECHES TO CORPORATE AUDIENCES ON CHINA

  • AND THEY WANT ME TO TALK ABOUT STRATEGY,

  • IT'S LIKE. "HEY, YOU'RE GOING OVER TO CHINA.

  • "YOU'RE GIVING THEM YOUR AVIONICS

  • "SO YOU CAN PARTICIPATE IN A REGIONAL JET GAME IN CHINA,

  • "AND TWO OR THREE OR FIVE YEARS FROM NOW,

  • "YOU'RE GOING TO TRY TO SELL YOUR REGIONAL JETS IN EUROPE,

  • "AND YOUR BIGGEST COMPETITOR IS GOING TO BE THAT CHINA GUY.

  • HOW STUPID IS THAT?"

  • WHAT'S HAPPENING UNFORTUNATELY IN THE UNITED STATES

  • IS WAY TOO MANY OF OUR MULTINATIONAL CORPORATIONS,

  • NOT ONLY THEY'RE SHIFTING THEIR MANUFACTURING OVERSEAS,

  • BUT ALONG WITH IT GOES THEIR TECHNOLOGY,

  • THEIR INTELLECTUAL PROPERTY.

  • AND WHILE MANY OF US ARE CONCERNED, DEEPLY CONCERNED,

  • ABOUT THE LOSS OF JOBS,

  • WE'RE JUST AS CONCERNED ABOUT THE LOSS OF INTELLECTUAL PROPERTY.

  • THAT'S SORT OF THE FUTURE OF AMERICA.

  • THE THING IS NOBODY HAS REALLY LOOKED

  • AT ALL THE INDUSTRIES THAT HAVE BEEN LOST.

  • IT'S VERY HARD TO GET INFORMATION ON THE INDUSTRIES THAT ARE GONE,

  • OR THAT ARE JUST ABOUT GONE,

  • BECAUSE THE GOVERNMENT DOESN'T KEEP TRACK OF ANY DATA.

  • THEY DON'T FOLLOW INDUSTRIES.

  • THEY HAVE NO MARKET ANALYSTS

  • WHO FOLLOW SPECIFIC INDUSTRIES,

  • SO NOBODY KNOWS WHAT'S HAPPENED

  • WITH ALL OF OUR INDUSTRIAL CAPACITY THAT'S VANISHED,

  • OR IS IN THE PROCESS OF VANISHING.

  • THE NEXT THING YOU SEE IS YOU'RE NOT DOING ANY WORK OVER THERE YOURSELF.

  • THE CHINESE ARE DOING IT FOR YOU ENTIRELY.

  • AND WE SEE THAT.

  • THE TWO MID-RANGE AIRCRAFT IN THE WORLD

  • ARE THE AIRBUS 319 AND THE BOEING 737.

  • FIVE YEARS FROM NOW,

  • THE CHINESE HAVE ALREADY TOLD BOTH COMPANIES,

  • THEY WILL NO LONGER BUY EITHER AIRCRAFT.

  • THAT MID-RANGE AIRCRAFT, THE ONE THAT IS DOMINATE THROUGHOUT ASIA,

  • WILL BE ENTIRELY MANUFACTURED IN CHINA

  • UNDER A CHINESE MARK OR NAME

  • USING TECHNOLOGY THAT THEY TOOK

  • FROM AIRBUS ON THE ONE HAND AND BOEING ON THE OTHER.

  • ? LOOK AROUND ?

  • ? TELL ME WHAT YOU SEE ?

  • ? EVERY DAY MORE PEOPLE IN THE STREET ?

  • ? TOO BAD ?

  • ? THEY SENT OUR JOBS AWAY ?

  • ? IN CHINA THEY'RE NOT WORKERS, THEY'RE JUST SLAVES ?

  • ? PEOPLE, WAKE ?

  • ? IT'S A WORLD OF TRADE AND GREED ?

  • ? AND THE CEOs GET RICHER ?

  • ? AND OUR JOBS ALL MOVE OFF SHORE ?

  • ? OH-OH-OH-OH ?

  • THE SOVIET UNION

  • COULD MAKE AN UNBELIEVABLE INTERCONTINENTAL BALLISTIC MISSILE,

  • BUT THEY COULDN'T MAKE A LOAF OF BREAD.

  • NOW, WE CAN MAKE A STEALTH FIGHTER,

  • BUT WE CAN'T MAKE A PAIR OF SHOES.

  • YOU CAN'T BE A WORLD POWER

  • IF YOU DON'T MAKE ANYTHING BUT HOT AIR,

  • AND WE'RE WELL ON OUR WAY TO THAT.

  • YOU CAN'T HAVE SUSTAINABLE, LONG-RUN ECONOMIC GROWTH

  • AT ROBUST LEVELS

  • IN THE ABSENCE OF A MANUFACTURING BASE.

  • LESS THAN NINE PERCENT OF AMERICAN WORKERS

  • ARE NOW IN THE MANUFACTURING SECTOR.

  • WE AS A COUNTRY CAN'T SURVIVE

  • INTO THE LONG TERM WITH UNDER 25%

  • OF OUR WOMEN AND MEN MAKING THINGS.

  • MANUFACTURING JOBS

  • HAVE A HIGHER MULTIPLIER THAN SERVICE INDUSTRY JOBS.

  • THAT IS TO SAY, EVERY ONE MANUFACTURING JOB THAT YOU BRING INTO A COMMUNITY

  • ULTIMATELY SUPPORTS HALF A DOZEN OTHER JOBS.

  • IF YOU ARE HONEST ABOUT HOW JOBS HAVE EVOLVED IN THE UNITED STATES,

  • SMALL BUSINESSES AROSE

  • ONLY WHEN THERE WAS A STABLE MANUFACTURING BASE PUT UNDER THEM.

  • MY MOTHER, AND MANY MOTHERS OF YOURS, I'M SURE,

  • UP ON THE COMMISSION,

  • THEY GAVE THEMSELVES HOME PERMANENTS.

  • IT WAS ONLY WHEN THERE WAS A STABILITY OF MIDDLE-CLASS INCOMES

  • THAT YOU HAD BEAUTY PARLORS AND NAIL SALONS

  • AND PIZZA PARLORS AND MCDONALDS

  • AND ALL OF THE THINGS WE THINK OF AS SMALL BUSINESS.

  • EVERY ONE MANUFACTURING JOB THAT YOU BRING INTO A COMMUNITY

  • ULTIMATELY SUPPORTS HALF A DOZEN OTHER JOBS.

  • THOSE MANUFACTURERS

  • PROVIDE THE GOOD-PAYING JOBS IN OUR COMMUNITY,

  • AND IT'S THE JOBS THAT A FATHER OR MOTHER CAN WORK AT THE FACTORY,

  • RAISE THEIR FAMILY,

  • HAVE SOME HEALTH CARE, HAVE A SAFE PENSION,

  • DONATE A LITTLE BIT OF MONEY INTO THE BASKET IN CHURCH ON SUNDAY,

  • VOTE FOR THE SCHOOL LEVY,

  • VOTE FOR THE POLICE AND FIRE LEVY,

  • TO HELP BUILD STRONG COMMUNITIES,

  • AND WHEN THOSE FACTORIES GOT WIPED OUT

  • AND THEY WENT FROM 200 TO 30 PEOPLE,

  • IT BECOMES VERY DIFFICULT

  • FOR THESE COMMUNITIES TO SUSTAIN THEMSELVES.

  • ULTIMATELY THE MOST IMPORTANT REASON

  • WHY AMERICA MUST RESTORE ITS MANUFACTURING BASE

  • IS TO HOLD ON TO THE RESEARCH AND DEVELOPMENT, THE R&D.

  • THAT IS THE TAP ROOT OF ALL OF THE TECHNOLOGICAL INNOVATIONS

  • WE WILL NEED TO CREATE NEW JOBS IN NEW INDUSTRIES.

  • MANUFACTURING IS THE ORIGIN OF 70% OF U.S. R&D.

  • THAT'S TRUE EVEN TODAY.

  • YOU CAN'T DO YOUR R&D HERE AND DO YOUR MANUFACTURING THERE.

  • YOU CAN'T MOVE YOUR MANUFACTURING OVERSEAS

  • AND NOT MOVE YOUR TECHNOLOGY AND ALL YOUR ENGINEERING.

  • IT'S NICE TO DO R&D AND COME UP WITH A SUPER-DUPER DESIGN

  • OR A NEW PRODUCT, BUT IF YOU CAN'T MAKE IT,

  • WHAT'S THE SENSE OF DOING THE R&D?

  • WHEN WE SAY WE'VE KEPT OUR TECHNOLOGY OR OUR I.P.

  • BUT WE'VE MOVED OUR MANUFACTURING,

  • THAT'S JUST NOT TRUE.

  • IT'S AN IMPOSSIBLE FEAT.

  • THEY'RE TOTALLY COUPLED.

  • SO AS MANUFACTURING HAS MOVED OFF SHORE,

  • R&D HAS GONE RIGHT WITH IT.

  • SO AS WE MOVE MORE AND MORE MANUFACTURING OVER TO CHINA,

  • AND PEOPLE CAN RE-ENGINEER

  • AND UNDERSTAND HOW THINGS ARE MADE,

  • WE ARE TEACHING THE COUNTRY

  • HOW TO COMPETE WITH US,

  • AND ULTIMATELY THEY ARE.

  • SO THAT THE NEW PRODUCTS,

  • THE NEXT CUTTING EDGE PRODUCT,

  • IS BEING DEVELOPED THERE

  • WHERE THE MANUFACTURING'S GOING ON IN CHINA

  • RATHER THAN HERE WHERE THE MANUFACTURING WAS

  • AND NOW IS NO LONGER.

  • ? THERE'S NO OTHER WAY AROUND IT ?

  • ? WE CAN'T MAKE IT ON OUR OWN ?

  • ? ALL THE JOBS WENT TO CHINA ?

  • ? NOW I'M LOSING MY OWN HOME ?

  • WE NEED TO CHANGE COURSE.

  • WE NEED DEFINITIVE U.S. ACTION.

  • WE NEED TO SHOW THE CHINESE THAT THERE ARE LIMITS,

  • THAT THEY HAVE TO BE RESPONSIBLE CITIZENS,

  • AND THAT IF THEY'RE NOT RESPONSIBLE CITIZENS,

  • THERE ARE CONSEQUENCES.

  • I LIKE THE IDEA OF DOING BUSINESS WITH CHINA.

  • THERE ARE A FEW PEOPLE OVER THERE.

  • BUT, IT SHOULD BE, IT MUST BE ON OUR TERMS.

  • IF IT'S NOT ON OUR TERMS,

  • THEN IT'S ON THEIR TERMS,

  • AND IF IT'S ON THEIR TERMS,

  • THEY DON'T HAVE OUR BEST INTERESTS IN MIND.

  • PEOPLE SOMETIMES SAY

  • THAT WE CAN'T STAND UP TO THE CHINESE ON ANY OF THESE ISSUES

  • BECAUSE WE RISK STARTING A, QUOTE, "TRADE WAR."

  • MY MESSAGE TO THE AMERICAN PEOPLE

  • IS THAT WE ARE ALREADY IN A TRADE WAR.

  • WHAT'S WRONG WITH TAKING CHINA TO TASK?

  • THEY PIRATE OUR TECHNOLOGY.

  • THEY PIRATE OUR INTELLECTUAL PROPERTY RIGHTS.

  • THEY COUNTERFEIT OUR GOODS AND SERVICES,

  • AND NO ADMINISTRATION HAS THE BACKBONE TO STAND UP TO THEM.

  • IT'S BEEN DISMAYING FOR ME TO SEE

  • A SUCCESSION OF ADMINISTRATIONS,

  • BOTH REPUBLICAN AND DEMOCRATIC,

  • UNABLE OR UNWILLING

  • TO TAKE ON THE CHINA TRADE IMBALANCE,

  • AND I WOULD SAY PART OF THAT IS THE VERY COZY RELATIONSHIP

  • THAT ANY WHITE HOUSE HAS WITH THE BIG MULTINATIONAL CORPORATIONS

  • AND WITH THE INTELLECTUAL ELITE

  • THAT HAVE TAKEN A VERY SOFT VIEW ON THIS ISSUE,

  • SO I THINK BOTH DEMOCRATIC AND REPUBLICAN ADMINISTRATIONS

  • HAVE FAILED US IN THE SAME WAY.

  • SO HOW DO WE THE PEOPLE

  • OVERCOME THE POWER AND INFLUENCE

  • OF THE BIG MULTINATIONAL COMPANIES

  • AND THE DEADLY INERTIA

  • OF OUR POLITICAL LEADERSHIP

  • TO BRING ABOUT LONG OVERDUE CHANGES

  • IN THE U.S.-CHINA TRADE RELATIONSHIP?

  • IT ALMOST TAKES A MOVEMENT,

  • A TEA PARTY THAT'S DIFFERENT THAN--

  • THAT'S COMPLETELY DIVORCED OF LEFT OR RIGHT.

  • IT'S VIRTUALLY A TEA PARTY

  • THAT DIFFERENTIATES BETWEEN RIGHT AND WRONG,

  • WHICH IS VERY MUCH DIFFERENT THAN LEFT OR RIGHT.

  • I THINK THIS CAN ONLY HAPPEN

  • WHEN THE AMERICAN PEOPLE REALLY UNDERSTAND

  • WHAT IS HAPPENING TO US

  • AND BEGIN TO DEMAND THAT THEIR CONGRESSMEN AND SENATORS REALLY--

  • AND THE NATIONAL GOVERNMENT--

  • TAKE ACTION IN THESE AREAS.

  • I THINK THAT AT EVERY LEVEL,

  • PEOPLE COULD BOYCOTT TO SOME EXTENT,

  • AND THERE WOULD BE A SHOT HEARD AROUND THE WORLD.

  • IT'S GOT TO BE A WHOLE COMMUNITY EFFORT BY THE CITIZENRY,

  • BUT WE DO NEED TO CREATE JOBS.

  • IT DOESN'T ALWAYS HAPPEN ACCIDENTALLY.

  • HERE'S THE MESSAGE THAT NEEDS TO BE DEVELOPED.

  • YOU KNOW, LOOK. IT DOESN'T HAVE TO BE THIS WAY.

  • THIS IS AN ECONOMY AND A GLOBAL ECONOMY

  • THAT HAS BEEN MADE BY POLICY CHOICES,

  • POLICY CHOICES THAT REALLY DO BENEFIT THE RICH

  • AND THE MULTINATIONALS.

  • THEIR INTERESTS NO LONGER COINCIDE

  • WITH THE INTERESTS OF THIS COUNTRY,

  • SO WE HAVE TO DO WHAT'S BEST FOR THIS COUNTRY.

  • THEY'LL DO WHAT'S BEST FOR THEIR COMPANY,

  • BUT WE HAVE TO DO WHAT'S BEST FOR THIS COUNTRY.

  • AND THAT MEANS ALL OF US COMING TOGETHER,

  • BUILDING AN ECONOMY THAT REALLY DOES WORK FOR EVERYBODY.

  • SO HOW DO WE BUILD SUCH AN ECONOMY?

  • WE HAVE TO DECIDE AS A NATION

  • THAT WE WANT MANUFACTURING,

  • THAT WE WANT PROSPERITY

  • AND THE GOOD JOBS AND INCOME THAT COME WITH MANUFACTURING.

  • THE ONLY THING THAT MATTERS TO ME IS FLINT, MICHIGAN,

  • DAYTON, OHIO, AND BUFFALO, NEW YORK.

  • IF YOU DON'T REESTABLISH THE MANUFACTURING BASE

  • OF THIS COUNTRY

  • ROUGHLY AT THE LEVEL OF 20 TO 25% OF WORKERS,

  • AND THE MOST IMMEDIATE WAY TO DO THAT IS TRADE REFORM WITH CHINA.

  • THE BEST JOBS PROGRAM

  • IS TRADE REFORM WITH CHINA,

  • AND THE ARGUMENT IS PRETTY SIMPLE.

  • THE GROSS DOMESTIC PRODUCT GROWS WITH ONLY FOUR THINGS--

  • CONSUMPTION, INVESTMENT,

  • GOVERNMENT SPENDING, AND NET EXPORTS.

  • AND WHEN YOU RUN A TRADE DEFICIT,

  • THE SIMPLE MATH OF THAT

  • IS THAT'S A NEGATIVE IN TERMS OF GROWTH.

  • I THINK THE NUMBER ONE THING

  • THAT THE UNITED STATES HAS TO DO

  • IS TO MOVE TO SAY WE ARE GOING TO BALANCE OUR TRADE.

  • LOOK, IF WE HAD HAD BALANCED TRADE,

  • YOU WOULDN'T HAVE HAD A DECADE OF A DRAG ON GDP

  • THAT AMOUNTED TO ALMOST A POINT PER YEAR,

  • SO OF COURSE WE WOULD BE BETTER OFF.

  • NOW, PEOPLE SAY, "HOW DO YOU DO THAT?"

  • I'M A YOUNG GUY WHEN PRESIDENT KENNEDY SAID, "WE'RE GOING TO THE MOON."

  • HE DIDN'T HAVE A CLUE HOW TO GET TO THE MOON,

  • BUT WE SET IT AS A NATIONAL GOAL

  • AND WE FIGURED OUT HOW TO DO IT

  • BECAUSE WE'RE A SMART, CREATIVE PEOPLE.

  • AND IF WE ARE TO TRULY BALANCE OUR TRADE,

  • WE CANNOT DO IT BY BOOSTING EXPORTS ALONE.

  • PRESIDENT OBAMA SAYS, "LET'S EXPORT MORE."

  • WE'RE NOW EXPORTING MORE THAN $100 BILLION A YEAR

  • IN GOODS AND SERVICES TO CHINA.

  • BUT IT ISN'T EXPORTS THAT MATTER.

  • IT'S THE DIFFERENCE BETWEEN IMPORTS AND EXPORTS.

  • EXPORTS ARE GREAT,

  • BUT IF YOUR IMPORTS GROW MORE RAPIDLY THAN YOUR EXPORTS,

  • THERE'S A DRAIN ON DEMAND

  • FOR WHAT AMERICANS MAKE,

  • WE GET MORE UNEMPLOYMENT,

  • AND THE ECONOMY SINKS INTO THE KIND OF MESS WE'RE IN.

  • IF YOU LOOK AT AMERICA TODAY,

  • WE HAVE A VERY FAST-GROWING EXPORT SECTOR,

  • AND PEOPLE TALK ABOUT HOW WE'RE GOING TO COME BACK WITH EXPORTS.

  • THAT'S JUST ALL SILLY.

  • AMERICA'S GOING TO COME BACK FROM "IMPORT SUBSTITUTION."

  • WE DON'T HAVE TO TAKE OVER THE WORLD IN EXPORTS.

  • WE SIMPLY NEED TO GET BACK OUR MARKET HERE.

  • IN FACT AMERICAN CONSUMERS AND CITIZENS

  • SEEM TO BE FAR AHEAD OF OUR POLITICIANS

  • WHEN IT COMES TO UNDERSTANDING

  • BOTH THE DANGERS WE FACE

  • AND THE NEED FOR FUNDAMENTAL CHANGE.

  • WE'RE A SUBSIDIARY OF CHINA AND GETTING WORSE AND WORSE

  • BECAUSE THEY'RE GOING TO OWN US PRETTY SOON.

  • NO, YOU CAN'T HAVE IT BOTH WAYS.

  • WE EITHER WANT THE JOBS,

  • THE MANUFACTURING,

  • EVERYTHING HERE IN THE UNITED STATES,

  • AND WE'RE GONNA BUY IT,

  • BUT YOU GO TO THE STORE AND YOU LOOK FOR THE CHEAPEST THING,

  • WHICH USUALLY COMES FROM CHINA.

  • I DO BUY CHINA STUFF,

  • BUT I PREFER TO BUY AMERICAN THINGS.

  • [INTERVIEWER] WHY?

  • I THINK IT'S BETTER JUST TO SUPPORT THE ECONOMY HERE

  • RATHER THAN-- YOU KNOW, YOU CAN BUY CHEAPLY IN CHINA,

  • BUT I THINK IT'S BETTER FOR OUR ECONOMY IF WE BUY HERE.

  • WE'VE ALSO GOT TO LOOK AT OUR PRINCIPLES, TOO.

  • LOOK HOW THEY'RE LIVING.

  • IS THAT WHAT WE WANT TO SUPPORT?

  • WE OPEN UP OUR MARKETS TO EVERYBODY,

  • AND I THINK THAT IF THAT'S HOW IT'S GONNA BE,

  • IT NEEDS TO BE A TWO-WAY STREET,

  • AND I THINK POLITICALLY,

  • OUR SYSTEM HAS NOT SUPPORTED, YOU KNOW, THE AMERICAN WORKER,

  • THE AMERICAN PRODUCT FROM THAT STANDPOINT.

  • AND PERHAPS THE BIGGEST REASON OUR POLITICIANS ARE FAILING US

  • IS BECAUSE THEY HAVE TRULY FORGOTTEN

  • THE PROPER ROLE OF GOVERNMENT.

  • I USED TO DEBATE A COLLEAGUE OF MINE,

  • MY COUNTERPART FROM THE CHAMBER OF COMMERCE,

  • AND HE USED TO SAY TO ME,

  • "YOU KNOW, IT'S NOT MY JOB TO PLAY SANTA CLAUS TO THE WORKERS

  • "OR TO PAINT MY COMPANY GREEN.

  • IT'S MY JOB TO MAKE MONEY FOR THE SHAREHOLDERS,"

  • AND I AGREE WITH THAT. THAT IS THE JOB OF CORPORATIONS,

  • BUT IT IS GOVERNMENT'S JOB TO MAKE SURE THAT COMPANIES ARE DOING THAT

  • WITHIN A FRAMEWORK THAT MAKES SENSE.

  • I THINK THE FIELD THAT WE'RE PLAYING ON

  • NOT ONLY NEEDS TO BE LEVEL,

  • BUT I THINK EVERYBODY NEEDS TO BE ON ONE FIELD.

  • WE'RE NOT EVEN ON THE SAME FIELD AS THE CHINESE.

  • WE ARE PAYING VERY GOOD WAGES.

  • WE ARE PROVIDING HEALTH CARE TO OUR EMPLOYEES.

  • WE ARE IN A REGULATED BUSINESS

  • AS FAR AS WORKPLACE SAFETY FOR OUR EMPLOYEES.

  • WE PAY OUR TAXES GLADLY,

  • AND WE CANNOT COMPETE

  • WITH A NON-REGULATED WORKPLACE

  • THAT PAYS THEIR EMPLOYEES PENNIES

  • AND ARE ALLOWED TO IMPORT THEIR GOODS

  • INTO THIS COUNTRY WITH NO RESTRICTIONS.

  • WHAT IS THE ALTERNATIVE FOR AMERICA?

  • SAY EVERYBODY-- ALL OF OUR WORKERS SHOULD TAKE A 50%, 60% PAY CUT

  • AND THEN WE'LL REALLY TAKE ON CHINA?

  • WE'LL BE-- WE'LL GET THEM.

  • OR, YOU KNOW, HAVE DIRTIER AIR OR HAVE THE CUYAHOGA RIVER CATCH ON FIRE AGAIN

  • BECAUSE THERE'S SO MUCH POLLUTION GOING IN.

  • IS THAT REALLY HOW WE'RE GOING TO COMPETE WITH CHINA?

  • I THINK IT'S THE COMPLETE OPPOSITE.

  • I THINK WE REINVEST BACK INTO OUR WORKERS.

  • I THINK WE JUMPSTART THE MIDDLE CLASS,

  • AND I THINK HAVE POLICIES IN PLACE

  • THAT WOULD ENCOURAGE MANUFACTURING BACK HERE

  • TO PUT THOSE GOOD JOBS IN PLACE HERE IN THE UNITED STATES.

  • BUT EVEN IF WE ULTIMATELY SOLVE OUR ECONOMIC PROBLEMS,

  • THERE WILL STILL BE VERY DIFFICULT CHALLENGES AHEAD

  • IN THE U.S.-CHINA RELATIONSHIP.

  • IF TENSIONS DO RISE,

  • WE MUST ALWAYS REMEMBER THIS--

  • THERE'S A REAL DIFFERENCE BETWEEN THE CHINESE PEOPLE AND THE CHINESE GOVERNMENT.

  • MOST OF THE CRITICISMS THAT WE HAVE ARE OF THE CHINESE GOVERNMENT,

  • THE ACTIONS THAT THE CHINESE GOVERNMENT HAS TAKEN

  • WITH RESPECT TO TRADE POLICY

  • AND WORKER RIGHTS REPRESSION,

  • AND THE CHINESE PEOPLE SUFFER

  • FROM A LOT OF THOSE SAME POLICIES.

  • WE NEED TO UNDERSTAND CHINA BETTER.

  • WE HAVE THIS SORT OF GLOWY VIEW OF THE TRAJECTORY OF CHINA'S HISTORY,

  • BUT WHAT WE HAVE SEEN,

  • ESPECIALLY OVER THE LAST COUPLE OF YEARS,

  • IS A CHINA THAT IS MOVING IN THE WRONG DIRECTIONS ON EVERYTHING.

  • AND IT'S NOT JUST HUMAN RIGHTS.

  • IT'S ITS RELATIONS WITH ITS NEIGHBORS,

  • ITS ECONOMY, YOU NAME IT.

  • THIS IS A COUNTRY THAT IS GOING BACKWARDS IN ALL PHASES.

  • I HEAR PEOPLE REFERRING TO THE PRC OR THE PEOPLE'S REPUBLIC.

  • WELL, LET'S BE HONEST.

  • AS SOON AS WE ACCEPT THAT PHRASE,

  • WE'RE JOINING CHINA IN THEIR REALITY DISTORTION FIELD.

  • IT'S A LIE.

  • IT IS NOT THE PEOPLE'S, AND IT IS NOT THE REPUBLIC.

  • STOP SAYING THAT. IT'S COMMUNIST CHINA.

  • WE'VE GOT TO SPREAD THE WORD THAT THERE'S DANGER OUT THERE,

  • AND WE NEED TO CHANGE OUR POLICIES.

  • WE CAN NO LONGER AFFORD TO TREAT A COMMUNIST DICTATORSHIP IN CHINA

  • AS WE WOULD TREAT ANY OTHER DEMOCRATIC INSTITUTION,

  • BECAUSE THEY HAVE TREATED US LIKE FOOLS FOR DOING THAT,

  • AND THAT'S BECAUSE WE HAVE BEEN FOOLS.

  • ? LOOK AROUND ?

  • ? TELL ME WHAT YOU SEE ?

  • ? EVERY DAY MORE PEOPLE IN THE STREET ?

  • ? SAID I USED TO WORK IN A FACTORY ?

  • ? RIGHT NOW I'D WORK FOR ANYTHING ?

  • ? OH-OH-OH-OH ?

  • ? OH-OH-OH-OH ?

  • ? OH-OH-OH-OH ?

  • ? OH-OH-OH-OH ?

  • ? IT'S NOT ME ?

  • ? BUT MY FAMILY I WISH TO FEED ?

  • ? NOT MUCH ?

  • ? WE GOT SIMPLE NEEDS ?

  • ? TOO BAD ?

  • ? THEY SENT OUR JOBS AWAY ?

  • ? IN CHINA THEY'RE NOT WORKERS, THEY'RE JUST SLAVES ?

  • ? PEOPLE, WAKE ?

  • ? IT'S A WORLD OF TRADE AND GREED ?

  • ? AND THE CEOs GET RICHER ?

  • ? AND OUR JOBS ALL MOVE OFF SHORE ?

  • ? OH-OH-OH-OH ?

  • ? OH-OH-OH-OH ?

  • ? OH-OH-OH-OH ?

  • ? OH-OH-OH-OH ?

  • ? MY OLDEST SON ?

  • ? HE GOT A COLLEGE DEGREE ?

  • ? HE DREAMED ?

  • ? OF RUNNING A FACTORY ?

  • ? NOW HE'S BACK HOME ?

  • ? JUST LIVING WITH ME ?

  • ? AND THERE'S NO BRIGHT FUTURE MY BOY CAN SEE ?

  • ? SIXTEEN HOURS ?

  • ? SEVEN DAYS A WEEK ?

  • ? OF UNIONS ?

  • ? AND FREEDOMS THEY CANNOT SPEAK ?

  • ? GOTTA RISE ?

  • ? GET UP OFF YOUR KNEES ?

  • ? BEFORE THEY BUY UP ?

  • ? ALL OUR DREAMS ?

  • ? WE GO TO THE STORE AND SPEND OUR MONEY ?

  • ? SEND ALL OUR DOLLARS OVERSEAS ?

  • ? THIS AIN'T THE LAND OF MILK AND HONEY ?

  • ? THIS IS THE LAND OF TRADE AND GREED ?

  • ? WE GO TO THE STORE AND SPEND OUR MONEY ?

  • ? SEND ALL OUR DOLLARS OVERSEAS ?

  • ? THIS AIN'T THE LAND OF MILK AND HONEY ?

  • ? THIS IS THE LAND ?

  • ? OF TRADE AND GREED ?

  • AND THIS WHOLE NOTION THAT WHAT'S GOOD FOR MULTINATIONALS

  • IS GOOD FOR AMERICA,

  • THAT'S COMPLETELY WRONG.

[MALE INTERVIEWER] YOU GOING TO BE OKAY?

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デス・バイ・チャイナ2012(字幕版 (Death By China 2012 (with subtitles))

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    Jing Liu に公開 2021 年 01 月 14 日
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