There is an interesting rift emerging among US business leaders when it comes to how we deal with China.
Venture Capitalists view is as a land of opportunity. From StartupJournal:
Venture capitalists got a wake-up call this summer when China's version of Google -- Baidu.com Inc. -- went public and saw its stock price more than quadruple on opening day. Baidu made clear that despite considerable risk, an immature capital market and regulatory flux, start-up opportunities in China can't be ignored, especially as U.S.-trained entrepreneurs head back home to start businesses.As a result, many venture-capital firms that usually only like to back start-ups close to home are developing China strategies.
Traditional manufactures want the Bush administration to get tough with China. From Inc.com:
In the wake of President Bush's recent trip to Asia, a coalition of U.S. business groups is assailing the administration for failing to press China to revalue its currency, which many say unfairly favors Chinese manufacturers and constitutes a violation of China's free-trade obligations.More than 40 manufacturing trade groups, including the Steel Manufacturers Association, have formed the China Currency Coalition with the U.S. Business and Industry Council to oppose what they consider China's illegal manipulation of its currency.
Many entrepreneurs see China as a place to outsource manufacturing to keep their costs competitive. Their business models might not even work without outsourcing.
The debate over outsourcing to China has become complex and emotional. It touches on issues such as jobs, profits, free trade, free enterprise, government intervention, national security, and economic globalization.
It is time to step back and examine the underlying issues, rather than letting this degenerate into a shouting match about whose ox is getting gored. Corporate lobbyists are behind most of the mess we now find ourselves in regarding trade with China. For years they have been getting sweet deals for their specific industry or even company when it comes to trade with China. I am afraid that if we leave it to these same lobbyists to settle the current issues being raised, it will only make things much worse in the future.
