Saturday, April 07, 2007

US-China Trade Confrontation

I do not know where I stand with the US-China trade dispute. On the one hand, I believe the US needs to correct its trade deficit with China and that intellectual property needs to be protected. The US has an important interest in both cases and should hold the Chinese government responsible for enforcement of privacy laws. The slave-labor conditions in the sweatshops where many of the pirated merchandise is made should also be of concern (Though with globalization even non-pirated goods fall under this category). On the other hand, I also believe US companies should reconsider the products they come out with. US companies restructuring their product to make them more appealing then the goods of bootleggers would go further than slowly pursuing them through the WTO. If US companies lower their prices or create a higher quality product, consumers are going to be drawn to the real product rather than a bad quality knock-off. I think this point is illustrated in the RIAAs anger over online downloading. If music companies would focus more on developing talent that create total albums rather than just hit singles, I think a lot more consumers would be willing to buy CDs. I believe it is the same case with consumers through out the globe.

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