China Warns U.S.: Stop Trying to Escape Your Trade Obligations

This is a syndicated repost courtesy of Money Morning – We Make Investing Profitable. To view original, click here. Reposted with permission.
China warns the U. S. once again…
This time about a World Trade Order (WTO) deal reached way back in 2001…
That’s when WTO members all agreed to treat Beijing as a ‘non-market economy’ until the arrangement officially expired – at which point China would then be upgraded to a ‘market economy.’
There’s a big difference between those two distinctions:
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Click here to learn how you can follow the money. A ‘market economy’ consists of private ownership of the means of production and of voluntary exchanges and/or contracts for goods. Competition in these economies is high, which makes goods production, as well as the value of goods themselves, significantly cheaper. On top of that, foreign investors often flock to ‘market economies’ because they bolster innovation, which, in turn, boosts profits. A ‘non-market economy’ consists of operations that are not market-based. Therefore, its prices for final goods do not reflect fair value. Government provision of goods – arguably on an even basis – typically occurs within ‘non-market’ economies – i.e., communist or socialist economies.

This post was published at Wall Street Examiner by Money Morning Staff Reports ‘ December 2, 2016.