Do Japan and China know that protectionism doesn't work?

Since it doesn't, they're going to end it soon, like in the next few months, right?

3 Answers

  • 9 years ago
    Best Answer

    Neither has practiced protectionism for quite some time, they know it doesn't work, that is why they trade with us and the rest of the world. They beat on on labor cost, government regulations and better tarrif agreements and taxes.

    Addition: Notice it mentions neo protectionism, which it hasn't been inacted yet.

    China has invested two-thirds[citation needed] of its reserves in US dollars, mostly US treasury bonds and agency bonds. The US dollar's devaluation on world currency markets has provided poor returns, prompting the Chinese to create the CIC to manage China's investment in equities.

    Credit Suisse predicted CIC would only take a 5-10% stake in each company, remaining a passive investor to avoid political hassles in overseas markets.[8] CIC bought a $3 billion stake in Blackstone, one of the largest US private equity firms. CIC has refrained from influencing Blackstone's investment strategy. The company will mainly pursue combined investments in overseas financial markets.

    CIC is thought to engage in building influence for the government by buying up significant stakes in companies that have influence in western governments including airline companies as also target firms that have heavily invested in China. The investments would help the government to influence the policies of multinational companies and to protect China's interests in international spheres.[verification needed]

    Market watchdogs want to know what would happen if China, Russia and Arab countries were to systematically acquire significant holdings in sensitive industries such as telecommunications, energy and defense. It could prove difficult to draw the line between sound government policies and neo-protectionism.

  • 9 years ago

    Protectionism DOES WORK!!

    The Chinese do not allow foreigners to come and establish investment firms, capital, etc. in their own nation...

    Look who is getting rich in the process.

    We need protectionism to resurrect the workforce. Read Hamilton. You will see the light.

  • ?
    Lv 5
    9 years ago

    They are getting rich off of it while WE are playing their dupes.

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