On Mon, Apr 15, 2002 at 02:12:26PM -0500, Steve Club wrote: > Does anyone still have the letter about the Chinese competition. I think it > was entitled "Bankrupting American". If so, could you please repost it or > send it to me? > > > Thanks > Stephen Clubb
Here Ya go:
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From: "Bill Schoeppe" <[EMAIL PROTECTED]>
To: "''Smartcam' (E-mail)'" <[EMAIL PROTECTED]>
Subject: [mfg-smartcam] Fw: BANKRUPTING THE UNITED STATES
Date: Fri, 5 Oct 2001 08:51:30 -0700
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I'm forwarding this to the group, because it has everything to do with
programming.
thanks bill
>
> ----- Original Message -----
> From: Chris Simpson <[EMAIL PROTECTED]>
> To: Rick Kerr <[EMAIL PROTECTED]>
> Sent: Thursday, October 04, 2001 2:29 PM
> Subject: Enlightening info
>
>
> > > BANKRUPTING THE UNITED STATES
> > >
> > > June 17, 2001
> > >
> > > Tool shops in the U.S. are going down due to the Chinese
> > > connection. What purchasing agents, buyers, project engineers,
> > > and tool engineers In the U.S. don't realize is that the Chinese
> > > almost never build just their tools. They don't realize that the
> > > Chinese are making duplicate, triplicate, and quadruplicate, etc.
> > > tools. With these duplicate tools, the Chinese are stealing our
> > > engineering and producing factories to
> > > Undersell the very companies that initially contracted with the
> > > Chinese to produce
> > > the first set of tools.
> > >
> > > Presently, there are approximately 350 toolmakers laid off in the
> > >
> > > Erie-Meadville, PA area. Chances are, these layoffs are
> > > permanent.
> > > Meadville is the capital of tool and die making In the U.S.
> > > There are
> > > more toolmakers, per capita, in Meadville than anywhere else.
> > > Chicago has the most toolmakers in the country and Chicago is at
> > > less than half-capacity. Liquidation auctions at tool
> > > And die companies are becoming weekly events with machine tools
> > > selling for pennies on the dollar. Price is attracting the U.S.
> > > buyers of tooling. You can't start production without tooling.
> > > If you can get your tooling at 4 to.5 cents on the dollar, it's
> > > very hard to pass up. So, how can the Chinese do this? Well,
> > > its communism at it's best and we have basically no tariffs in
> > > place to even up the playing field.
> > >
> > > This is how I understand the Chinese connection to work. A
> > > Chinese businessman, who is favored by the Chinese government,
> > > writes a business plan. With the approval of the business plan,
> > > the Chinese businessman receives extremely low interest loans,
> > > or, in most cases, grants. The property for this new business is
> > > donated through "eminent domain" and a brand new facility with
> > > brand new state of the art equipment is constructed. The labor
> > > required to run the new facility is paid anywhere from $2.50 a
> > > day to $2.50 a week, or in some cases simply paid in food.
> > >
> > > The Chinese outnumber the rest of the free world 4 to l. The
> > > cheap Labor supply is virtually inexhaustible. A recent tour of
> > > these new high tech Chinese facilities revealed lines of Chinese
> > > people waiting to get jobs to the degree that the lines had
> > > formed into tent villages. To make matters even more unfair, the
> > > Chinese government owns all of the raw material manufacturing
> > > facilities. They own the steel mills, the raw plastic
> > > manufacturing facilities, paper mills, the oil refineries, the
> > > electricity producing facilities, etc. So, the Chinese officials
> > > give their businessmen the raw materials for pennies on the
> > > dollar in exchange for monetary kickbacks.
> > >
> > > For example, recently a package of four molds received the low
> > > bid in The U.S. for approximately $50,000. The job went to the
> > > Chinese for $9,000. The steel required to build the tools in the
> > > U.S. cost almost $14,000 before any other work was done to the
> > > steel to produce the molds. It's not just tough to compete, its
> > > completely impossible!!!
> > >
> > > WE NEED TARIFFS AND WE NEED THEM NOW!!!!!!!
> > >
> > > Consider this scenario: It's a year down the road and the
> > > majority of the larger tool shops have gone bankrupt. Some of
> > > the smarter ones have down sized to 15 man or smaller shops. The
> > > purchasing departments in the U.S. are forced to go with the
> > > Chinese, due to the capacity problems, who in turn, steal the
> > > engineering. With the stolen engineering, they produce new high
> > > tech factories to undersell the U.S. firms. Now U.S.
> > > manufacturing starts to head for bankruptcy. U.S. manufacturing
> > > is the backbone of the U.S. economy. Now what? It's too late!
> > >
> > > Doubt this scenario? It's already happening!!!!
> > >
> > >
> > > Talk to Caterpillar, they hit on the Chinese connection two years
> > > ago. Their D-9 diesel motor was tolled up and built In China.
> > > When Caterpillar buyers went over to check on progress they saw
> > > several sets of duplicate tools. Now, two years later, the
> > > Chinese version of the D-9 diesel sells for about 20 cents on the
> > > dollar. I understand Hoover is also in the midst of realizing the
> > > stolen engineering scenario. Truck-Lite is using the Chinese.
> > > In talking with the president of Truck-Lite, he informed me that
> > > his customers are demanding the lowest costs, which is forcing
> > > him into the Chinese connection for tooling. Many hundreds of
> > > U.S. manufacturers are forced into this boat whether they agree
> > > with it or not.
> > >
> > > Fisher-Price started this mess; now-the plant near Buffalo is
> > > history. Almost all toys are made in China. Look at the toys made
> > > In China by Chinese tools -they're good. Toys are some of the
> > > most complex molds to make. If they can make toys, they can make
> > > anything. It's not like the old days, 7-8 years ago, when
> > > Chinese quality simply wasn't there. It's here and the sleeping
> > > giant has awakened!!! The Chinese aren't stupid, wait until
> > > they've cornered the market on the toolmakers and their prices
> > > will go up. That should put the U.S. manufacturers on there
> > > knees all the sooner.
> > >
> > > The speed at which all of this is taking place is extreme. This
> > > Chinese solution is affecting all aspects of manufacturing, from
> > > lumber, furniture, paper, power tools, home appliances, clothing,
> > > computers, electronics, plumbing, hardwire, building supplies,
> > > electrical, etc. This isn't another cheap labor scene like
> > > Mexico. Remember, this Is COMMUNIST CHINA. They outnumber the
> > > rest of the world 4 to 1!!! Consider 100,000 Chinese starting
> > > 10,000 manufacturing facilities all at the same time. I should
> > > think you haven't even scratched the surface. Keep in mind that
> > > the raw materials are provided at 2 - 3 cents on the dollar and
> > > the virtually inexhaustible labor supply is paid, at best, 1/10
> > > of U.S. wages. Think about the extraordinary amounts of money
> > > that is changing hands between the Chinese officials and
> > > businessmen and the upper echelon of the free world.
> > >
> > > We need to have tariffs. Dropping the interest rate another half
> > > Percent isn't going to cut it. Loosening up emissions is going
> > > backwards. Establishing fair trade is one thing. Allowing
> > > communist China, the largest populations on the face of the
> > > planet, to steal our engineering, wallow in human rights
> > > violations, add in the dumping of raw material and labor, and
> > > potentially bankrupt the United States of America Is INSANE! I
> > > would hope that our government would have the common sense to put
> > > a stop to this ridiculous practice of that amounts to totally
> > > free unregulated trade with the MOST DANGEROUS communist country
> > > in the world.
> > >
> > > Good economists have used tool shops for years to predict the
> > > economy, because the backbone of the economy is manufacturing.
> > > They know that manufacturing cannot start without tooling. When
> > > tool shops pick up, manufacturing won't be far behind. They also
> > > know that the tool shops are the first to feel the economy slow
> > > down. In this case, without tariffs, tool shops counting on
> > > orders from manufacturers in bed with the Chinese may have six
> > > months to two years. Banks will be next and so on.
> > >
> > > I am not religious, but I understand that even the Bible talks of
> > > this. To the effect that the yellow race will dominate the earth
> > > and the eagle will fade away. We should be smart enough to keep
> > > this from happening WE ARE SMART ENOUGH - I hope.
> > >
> > >
> > > Scott R. Sando
> > > Vice-President
> > > Elite Mold & Design
> > >
> > > ****Since the date of this article, January l, 2001, 77 of the
> > > approximate 180 tool shops In the Chicago area have gone
> > > bankrupt. Representative Phil English, who has been to China, has
> > > substantiated the contents of this letter.
> > >
> > > ****China is not a member of the World Trade Federation and thus
> > > does not feel the need to play by the rules. China imports to us
> > > with a 3% tariff. We import to China with a 12% tariff.
> > >
> > > ****The Chinese have purchased nine submarines from the Russians.
> > > Three of these subs have been delivered, which is completely
> > > stealth under 25 knots.
> > >
> > > ****Six more tool shops in the Meadville area have gone
> > > bankrupt. Two of the shop owners have committed suicide. The
> > > number of toolmakers laid off in the Meadville area is now
> > > approaching 800.
> > >
> > > ****What we desperately need is for the president of the United
> > > States to enact what is known as "House Rule 44". This ruling
> > > allows the President to initiate an emergency tariff "in the
> > > interest of national security". Whether the security issues are
> > > military or economic. In this case, it would be economic - or
> > > would it??? They've had our spy planes. Now they have stealth
> > > nuclear submarines.
> > >
> > > I received this letter from Scott Sando and plan on passing it on
> > > to as many people as possible. I am urging you to e-mail or call
> > > the White House. You can e-mail the President and Vice-President
> > > at [EMAIL PROTECTED] <mailto:[EMAIL PROTECTED]> and
> > > put your letter to the attention of President Bush, do the same
> > > for Vice-President Chaney. You can call the White House comment
> > > line at 202/456-1111. Maybe if we stand united in this, we can do
> > > something to make a Difference for the future of our country, our
> > > own futures and the futures of our children and grandchildren.
> > >
> > > July 30,2001
> > > My name is Glenn Caspary and I am a third generation toolmaker,
> > > working in the plastics industry for 39 years. My son and my two
> > > nephews are now fourth generation toolmakers. I strongly
> > > influenced them to go into our trade, as it has always been so
> > > good to our family with regards to always being able to make a
> > > good living. At this time I am very worried for their futures
> > > and they're families' well being. During my years in the trade I
> > > have seen both good and bad times but never like this. Anyone
> > > working in this industry knows how bad it is but I don't think
> > > they realize that this is a different situation than we have had
> > > before, due to the changing world we now live in. This is not
> > > just the global economy we see impacting our business, but I
> > > truly feel this is communist China at war with us and most of the
> > > country doesn't even know it.
> > >
>
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