...But, (click here) China's competitive advantage is to some degree based in it's inadequate governance....
Or better said, the bully in the china shop.
China is like the Republican Tea Party, they have so much clout in it's potential to destroy the USA's quality of life they are ungovernable.
When Germany exports BMWs to the USA there are specific standards for safety, materials, etc. that has to be met. They are called import standards. Germany, being a First World Country, has absolutely no problem meeting and in many instances exceeding those standards.
I am only using Germany as an example. What makes Germany a good trading partner is that the quality of their goods come from a country well governed with values similar to those of the USA.
What has occurred in China is the 'promise' of having a good trading partner with similar products to that of Americans, but, lack in quality. I am sure all the hideous problems Americans faced with Chinese products can be recalled, melamine, etc. Not that China doesn't take these problems seriously, they do. They executed people for the deaths from products produced in China. China is taking everything very seriously.
The problem as it remains today is that investors have placed too much hope in China's expanding markets and that is what has led to many recessions in the USA because of loss of jobs. Outsourcing is causing a great deal of problems to First World Countries. The standard of living is different.
The USA has been trading with other nations in the Pacific such as Japan, New Zealand, Australia, etc. for a long time. We have waxed and waned in our economies together and have been rival currencies on some days, but, we are never so drastically different in our GOVERNANCE that quality of products or being competitive was ever in question.
The TPP is causing global quakes in that reality. The TPP as it is being constructed will create economic isolationism and not global trading. The goods coming from countries where poor governance is still a problem will be shunned by consumers. It is not something that is negotiable on paper or guaranteed with a handshake, the products simply don't pass muster.
Not only the products, but, the loss in jobs and wages will cause even greater isolationism. The treaty is not worth the paper it is written on. It will cause a decrease in tax bases and there is no government on this Earth that can afford it.
China has a middle class now and to that end there are improvements in governance, but, at the same time to demand broad ranging changes in governance in other countries to accommodate the captains of Wall Street is not realistic.
The TPP is not benevolent at all. It is hostile and it is insulting to democracy and the capitalism used in it's economies. Each one of these countries need to work within a trade relationship with each other, including the USA. But, lumping all the economic dynamics of 12 countries at varying degrees of governance and standards of quality is not good for anyone.
Trade agreements are suppose to strengthen both countries economies and not hack away at what already exists to reduce quality of life for the citizens dependent on strong economic relationships.
The Pacific nations aren't there yet and if that is uncomfortable for Wall Street, then they really have extended a lot of bad investment to their stockholders. It's unfortunate, but, not so unfortunate that Americans or any one else will accept unreasonable standards in trade. The corrupted Wall Street congress may not care, but, the businesses and the people of the USA will.
At this point, the TPP has very limited ability to produce good relationships. It is those relationships between countries that is far more important than the impatience and idiocy of Wall Street.
