China’s cheap and America has good quality. Right now people in the United States are choosing cheap, but why? It is so unsafe to have products made out of the states; other countries don’t have as much safety requirements. This is why outsourcing is bad for the United States.
It isn’t as safe to make an item in china as it is in an American factory. They don’t take as much safety measures as a factory in the U.S has to. For example sometimes they even use lead-base paint on little kid’s toys. “Government regulators recalled more than 9 million Chinese-made toys.” “This is Mattels second major recall this month and the third time since June that Chinese firms have been blamed for using lead based paint. (Mattel Article) this shows how the products aren’t as safe when made in china as in America.
We don’t gain much from china, their imports cost is six times more than what we sent them in 2004. So basically we are losing money to them, which helps their economy while ours isn’t improving. For example in 2004 we exported 34,700,000 and imported from china 196,700,000. So we lost 162,000,000 to china in 2004. (Shown in the activity 1 lesson 3 worksheet). This shows that we don’t win in this trade partnership; instead we sort of lose because even though we gain lots of cheap required materials from them, they win much more than America per year.
China produces very cheap prices on their items. Although sometimes their too low of prices and the American companies have to outsource to china or go out of business. In the Wal-Mart video it said that china was dumping televisions into the United States. The prices where way too low, lower than the factories could make them for, which caused some industries in the U.S to close down. This shows how Chinas trade isn’t good at all because if a company wants to survive they also have to outsource to cheaper labor/material places in Asia. Or they will just go out of business because no one will buy their expensive products.
So America should stop trading with china because if they don’t, then all the American companies will have to outsource, and there will less jobs in the United States. Also as you see it isn’t as safe to make a toy in china, just think what could happen to your child if they choked on one of their favorite toys.