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The US Trade DilemmaThe low wage "condition" in Communist China!The problem for U.S. manufacturers: U.S. final-product manufacturers have found that the easiest way for them to reduce the cost of their products, in order to try to stay competitive, is to buy their parts from low cost parts suppliers from China. As long as final-product manufacturers have the right(because of today's free trade) to import the types of products they DON"T make, they will be forced to buy their needed parts from foreign parts suppliers in order to keep their prices competitive.
The following 3 charts illustrate the trade dilemma and SOLUTION!Below is a graphic representation of what is happening when US final product manufacturers outsource parts and supplies to China. You can see how US businesses and US trucking companies get eliminated. Some final product manufacturers use hundreds of suppliers for parts, packaging, tools, etc. This temporarily helps U.S. final product manufacturers, as it puts U.S.suppliers out of business. Even U.S. defense contractors are outsourcing parts to China for crucial U.S. weapons systems!
The chart below illustrates what happens when U.S. distributors, such as Walmart and Target, outsource final products to China. It eliminates not only U.S. parts suppliers and trucking companies, but it also eliminates final product manufacturers in the United States. Our current free trade policy is causing this to happen at a rapid rate. The United States has lost 36,000 factories in the last 8 years alone! In addition, products will soon ship from China to the new super port now being built in Mexico. This will eliminate even more U.S. jobs when it eliminates jobs at U.S. ports of entry and U.S. trucking business entirely in favor of Mexican truck lines that will be able to ship thoughout the U.S.
The next graphic illustration shows how U.S. manufacturing gets "back in the game" with the NHFA Foundation solution. Chinese suppliers would have to ship to U.S suppliers, Chinese final product manufacturers would have to ship to U.S. final product manufacturers, and the unfair policies of the Communist Chinese government would no longer be a factor in the "level playing field" that this trade strategy would create! Manufacturing in the U.S. would be revived and would be the catalyst that would turn the U.S.economy around!
The NHFA trade strategy solution summary: "Products would be allowed to be imported into the U.S.A. ONLY through U.S. manufacturers of the same types of products.
and . . .
each manufacturer's import percentage of "their own sales" would be limited to the current national import percentage for that type of product." Over several years, the import percentage for each product category could be reduced until the desired BALANCED TRADE is achieved for the United States.
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