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China generally is not more efficient. Rather, China doesn't have the cost of externalities included in the price of the goods. The US doesn't ensure that all t
by krschultz 11y ago
China generally is not more efficient. Rather, China doesn't have the cost of externalities included in the price of the goods. The US doesn't ensure that all the cost is put back on the manufacturers, but our environmental and labor regulation ensures at least some of it is included in the price. I imagine if China had the same requirements on its power plants and manufacturing facilities as the US does then the advantage (if any) would not be very much.
- gotchange 11y agoI was referring implicitly to the fact that China is the single largest coal producer in the world. Setting aside the environmental considerations for a moment here, this is definitely a competitive advantage in electricity generation given that aluminum production is an electric energy intensive activity.
- meric 11y agoThen U.S. is benefiting from China drawing down on its natural capital (much of the pollution from Coal excluding CO2 emissions is local to the continent). U.S. should mothball it's aluminium industry and buy China's.
- bzbarsky 11y agoChina makes it illegal for foreigners to own controlling interests in Chinese companies, so your last proposal won't work.