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Commentary: U.S. Wrong Strategic Choice
Beijing, China - July 19, 2018 (CCTV - No access Chinese mainland)
1. Various of graphics showing opinions
FILE: Washington D.C., USA - Date Unknown (CCTV - No access Chinese mainland)
2. White House
3. U.S. national flag
4. Various of U.S. Department of Commerce
5. Stone reading "United States Department of Commerce"
FILE: Washington D.C., USA - Date Unknown (CGTN - No access Chinese mainland)
6. U.S. national flags, pedestrians on street
7. Shoppers at supermarket
8. Various of shoppers at mall, walking on street
9. Various of assembly line of Volkswagen
FILE: Denver, Colorado, USA - May 9, 2018 (CGTN - No access Chinese mainland)
10. Various of steel, aluminum materials in factory
FILE: Iowa, USA - Nov,2017 (CCTV - No access Chinese mainland)
11. Various of soybean field
12. Various of grain being poured into container
FILE: China - Exact Location and Date Unknown(CCTV - No access Chinese mainland)
13. Various of U.S. dollar banknotes being counted
From individuals to companies to nations, everyone needs to make strategic choices. There are always the right strategies and the wrong ones, while the former brings prosperity, the latter usually brings mediocrity. Yet, before the consequences of choices become a reality, only the wise can tell the differences between the two choices.
The United States is picking some "obvious" correct strategies. However, history tells us that problems will surface, as none of the great nations in history were forged through these types of strategies, nor was today's United States built this way, said Chen Jiahe, chief strategist at Cinda Securities, Oxon to China Global Television Network (CGTN) on Wednesday.
Other countries are now gradually being blocked from trading freely with the United States, which the Trump administration claims to be "earning money for the American people".
However, this theory clearly overlooks one thing, that the gold standard has been abandoned for tens of years, which means money is no longer "money".
Today's money is not the natural rare gold. Today's global currency is mainly dominated by the United States dollar, something that has almost no intrinsic value at all.
As long as the United States is the leader of this world, American people do not have to earn this money, they can just print it. The keeping of the dominant position of the nation is a much more important task for the U.S., than earning money from the market.
Looking back at history, the United States' leading global position today was forged by its contribution to world wars, generous economic gesture after the war that was represented by the Marshall Plan, the world's largest free market for decades, and its creative invention of its marvelous technology industry, etc.
None of these were earned with methods like adding tariffs to earn back money.
When politicians now claim that they will bring jobs back to America by adding tariffs, they are making another big mistake.
The U.S. cannot bring programming jobs back to the states by adding a tariff to foreign-produced computers or mobile systems, as all of the four dominant operating systems in the world, Windows, Mac OS, Android and iPhone OS, are produced in the U.S. So tariffs have nothing to do with relevant jobs.
Bringing jobs back by adding tariffs does work in the industries including cloth making, steel production, and agricultural. Yet, the reason why the United States' economy is great in the 21st century is not because it produces a lot of good cloth, steel, and food, nor it has the world's best technology industry.
Regarding the technology industry, America's policymakers are now also choosing another thoughtless strategy with its immigration policy. Claiming that jobs shall be kept for the Americans and technology secrets shall not be leaked, the government is now tightening its acceptation of immigrants and international workers.
However, the decision makers seem to forget that it was just the "untrustworthy foreigners" who built a great part of the Silicon Valley.
In 1999, over one-third of the high technology workers in the Silicon Valley were foreigners. If you take into consideration only those who worked in the Silicon Valley and had PhD degrees, the number was over 50 percent.
If the Trump administration's immigration policy was conducted in the 1990s, the United States might not have such a great technology industry at all, which is the nation's most profitable part of global trade.
From Rome to the Tang Dynasty, none of the world's greatest nations were built by rejecting their neighbors and closing their gates. Not cooperating and isolating oneself are actions of the scared and great nations do not get scared.
It was free markets and creative people that pushed forward the civilizations and built great nations. Policymakers who forget about these principles will definitely make inaccurate strategic choices.
Commentary: U.S. Wrong Strategic Choice
Dateline : July 18/19, 2018/File
Location : China United States
Duration : 1'58
Beijing, China - July 19, 2018 (CCTV - No access Chinese mainland)
1. Various of graphics showing opinions
FILE: Washington D.C., USA - Date Unknown (CCTV - No access Chinese mainland)
2. White House
3. U.S. national flag
4. Various of U.S. Department of Commerce
5. Stone reading "United States Department of Commerce"
FILE: Washington D.C., USA - Date Unknown (CGTN - No access Chinese mainland)
6. U.S. national flags, pedestrians on street
7. Shoppers at supermarket
8. Various of shoppers at mall, walking on street
9. Various of assembly line of Volkswagen
FILE: Denver, Colorado, USA - May 9, 2018 (CGTN - No access Chinese mainland)
10. Various of steel, aluminum materials in factory
FILE: Iowa, USA - Nov,2017 (CCTV - No access Chinese mainland)
11. Various of soybean field
12. Various of grain being poured into container
FILE: China - Exact Location and Date Unknown(CCTV - No access Chinese mainland)
13. Various of U.S. dollar banknotes being counted
From individuals to companies to nations, everyone needs to make strategic choices. There are always the right strategies and the wrong ones, while the former brings prosperity, the latter usually brings mediocrity. Yet, before the consequences of choices become a reality, only the wise can tell the differences between the two choices.
The United States is picking some "obvious" correct strategies. However, history tells us that problems will surface, as none of the great nations in history were forged through these types of strategies, nor was today's United States built this way, said Chen Jiahe, chief strategist at Cinda Securities, Oxon to China Global Television Network (CGTN) on Wednesday.
Other countries are now gradually being blocked from trading freely with the United States, which the Trump administration claims to be "earning money for the American people".
However, this theory clearly overlooks one thing, that the gold standard has been abandoned for tens of years, which means money is no longer "money".
Today's money is not the natural rare gold. Today's global currency is mainly dominated by the United States dollar, something that has almost no intrinsic value at all.
As long as the United States is the leader of this world, American people do not have to earn this money, they can just print it. The keeping of the dominant position of the nation is a much more important task for the U.S., than earning money from the market.
Looking back at history, the United States' leading global position today was forged by its contribution to world wars, generous economic gesture after the war that was represented by the Marshall Plan, the world's largest free market for decades, and its creative invention of its marvelous technology industry, etc.
None of these were earned with methods like adding tariffs to earn back money.
When politicians now claim that they will bring jobs back to America by adding tariffs, they are making another big mistake.
The U.S. cannot bring programming jobs back to the states by adding a tariff to foreign-produced computers or mobile systems, as all of the four dominant operating systems in the world, Windows, Mac OS, Android and iPhone OS, are produced in the U.S. So tariffs have nothing to do with relevant jobs.
Bringing jobs back by adding tariffs does work in the industries including cloth making, steel production, and agricultural. Yet, the reason why the United States' economy is great in the 21st century is not because it produces a lot of good cloth, steel, and food, nor it has the world's best technology industry.
Regarding the technology industry, America's policymakers are now also choosing another thoughtless strategy with its immigration policy. Claiming that jobs shall be kept for the Americans and technology secrets shall not be leaked, the government is now tightening its acceptation of immigrants and international workers.
However, the decision makers seem to forget that it was just the "untrustworthy foreigners" who built a great part of the Silicon Valley.
In 1999, over one-third of the high technology workers in the Silicon Valley were foreigners. If you take into consideration only those who worked in the Silicon Valley and had PhD degrees, the number was over 50 percent.
If the Trump administration's immigration policy was conducted in the 1990s, the United States might not have such a great technology industry at all, which is the nation's most profitable part of global trade.
From Rome to the Tang Dynasty, none of the world's greatest nations were built by rejecting their neighbors and closing their gates. Not cooperating and isolating oneself are actions of the scared and great nations do not get scared.
It was free markets and creative people that pushed forward the civilizations and built great nations. Policymakers who forget about these principles will definitely make inaccurate strategic choices.
ID : 8085765
Published : 2018-07-20 00:22
Last Modified : 2018-08-18 10:01:00
Source : China Central Television (CCTV),China Global Television Network (CGTN)
Restrictions : No access Chinese mainland
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