AVIC, China again trying to buy the USA. Wall Street Journal Headline Sealth Fighter Maker AVIC hoping to compete on Cost for U.S. Defense Contracts!

Here's a link to the article for those that haven't read it:

http://online.wsj.com/article/SB10001424052748704775604576119811508921144.html?mod=WSJ_hp_LEFTTopStories

Don't look to Washington for help (at least for the next two years).  The current administration seems to be ashamed that the US is a superpower, and is trying mightily to reduce our stature....

If you want the Government to assure self-sufficiency, there's only one way to do it:  Establish import duties that ensure that overseas-manufactured products' prices are run up so high that the cost is more than they can be made domestically.

The US can't otherwise compete, financially.  You've got products being manufactured overseas by people who make $5 a day... if you reduced the US minimum wage to those levels (e.g., 65 cents an hour), you'd have millions of people who couldn't *afford* the stuff they're making to be sold at Wal-Mart.

High import duties would have huge drawbacks, of course.  Other countries would respond, which would mean OUR products would be too pricey to sell outside the country.  Think Boeing would survive, if they could only sell airplanes to US airlines?  US Automakers had $49 BILLION dollars in exports  last year.  Think Ford would survive if you cut off its portion of that?

Pul-eeeze.  Do you think a Republican administration would support cutting off business' access to low-cost raw materials, low-wage workers, and inexpensive products to sell?  No more than Democrats would support crippling unions or cutting the minimum wage in half.

It's the fault of both parties, and it's due to policies that have been made over decades, over multiple political administrations.  It's not going to be solved by a single person, a single administration, over a single term.  It's going to take a pack of politicians willing to look BEYOND the next election, and even beyond ten elections after that.  Anyone see any sign of such statesmen?

Hello Ron,

This is true to a point. The soul of a country is knowledge and the skills gained producing those products. The practical skills gained by workers actually producing products have been lost by many multiples during our lifetime. Many of the people that might have otherwise been creating and learning in our economy are potentially now salespeople or greeters at Wal-Marts. Now I will grant you some of these may well have been doing this type of job anyway, but probably not to the extent to where we are heading today.

The national security ramifications of this are even more astounding. To imagine that a Chinese company would even think this might be possible speaks volumes of the mindset in Washington today. Domestic production of a range of products, well outside the scope of what one today might consider of military significance, is vital to our security. I think we would be hard pressed to step up to a production challenge today if posed with one such as that faced subsequent to December 7th 1941.  

This is a very frightening mindset having seen the devastation left by the Soviets within former Communist Eastern Bloc countries when I lived there in the 1990’s. The glut of cheap Chinese products on our market, and with the Chinese then purchasing our countries debt with the money we are handing them by purchasing these products, is a national disgrace our forefathers would be astounded by! This is an attack, it just hasn’t visibly devastated us yet in as graphically illustrated an effect as December 7th, but it is happening regardless and we let this happen daily!

Ron Stated:

It's the fault of both parties, and it's due to policies that have been made over decades, over multiple political administrations.  It's not going to be solved by a single person, a single administration, over a single term.  It's going to take a pack of politicians willing to look BEYOND the next election, and even beyond ten elections after that.  Anyone see any sign of such statesmen?

 This is very true, long term ideology and a non-partisan vision to create a USA future generations can thrive in does not seem to be a priority. It would be refreshing to see the parties work together as was the case post 9/11. Both parties have lacked a vision regarding this for many years through many administrations. Sadly this really happening is more utopian than any likely reality. One can hope for such a statesman with a real long term vision for the US.

Another good discussion!  Ron has provided some good insights, here's my 2 cents.

I get the impression from the article that the bidding is really focused on the airframes not the high tech systems or engines at this point.  In our current economic and political environment the only way for any non-US bidder to have a shot will require politicians from both parties to work together to make that happen.  Given our election cycles, terms of office, and the heavy influence of money in our system does anyone believe we're going to see real "statesmanship" from the people we elect?  

Its interesting to note that we have a serious problem with debt and a big fight coming over budget cuts.  The question is always the same, who pays the bill and who gets a pass.  We will see "statesmanship" when Democrats make serious cuts in Federal agencies head count, pensions, and get serious about reforming Social Security, Medicare, and the healthcare system.  The Republicans will have to respond by raising  revenues.  That means getting rid of all the loop holes that allow businesses in every sector of our economy to avoid paying taxes.  High tax rates aren't the problem for US business because they all get relief through our tax code.  If we see some significant movement on these issues by both parties giving into to each others wishes then we may actually move forward and see real "statesmanship".  

 Remember Dandy Don's old song, "Turn out the lights the party's over"?  Well, now it's time for all the drunks to clean up the mess they've made!

Joe