To: energyplay who wrote (55683 ) 11/7/2004 10:46:42 AM From: RealMuLan Read Replies (1) | Respond to of 74559 >>There is a need for a Dun& Bradstreet / credit rating function - I would bet these "importers" are going from one factory to the next. Maybe the Bank of China, HK government, HSBC could do this service... track and validate importers.<< I think maybe Chinese gov. will make it as a requirement that all exporting companies have to attend credit insure. Only in that case, the Chinese gov. can start track them. Too many small and medium size companies just go their own way and were taking advantages by the predators. >>So real importers who pay their bills have to compete with "importers" who don't.<< I guess real importers are mostly multinational corporations. No need to worry about them since they have their way to squeeze out the profit<g> For example the patent fee on DVD players. They biggies sit there, don’t lift one finger, but harvest most of the profit<ng> Yeah, one might argue they invest big in those technology, which is only half true because I think they have made much more back than what they have put in. The latest out from China is that Taiwan and Chinese scientists are jointly doing their own standard (I am not sure whether it is EDVD or not) to stop being looted by the big corporations. It is ridiculous that Chinese companies can only make a couple of bucks on each player that they have to 4-6 times more for the royalty. >>Also means less domestic demand in China because workers are not paid.<< Definitely, although it only contributes to some workers unpaid salary. Most unpaid salaries are resulted from officials/project leaders stolen and embezzlement, and they simply move the capitals to some Swiss or other foreign banks. Plenty of poor workers got millions unpaid salary. From late last year, the Central gov. start to pay attention to this. All rural workers in Beijing now start to get paid through the city gov. (national banks) so no more delay pay. And some local governments also make laws to punish those who delay workers salary. And plenty of the violence in China has been resulted from workers going to the boss to ask for the delayed salary. Sign… >>And we can bet some of this stolen money is going to finance drug trade and possibly terrorism<< Might be<g> And drug problem in China, especially in the wild west part of China, is pretty bad. This issue is so complicated that need to post separately<g> The only thing I want to say here is a lot of drug money in Xinjiang has gone to fund Eastern Turkistan terrorist organization. >>What's the response of the US & China governments to this ?<< I don’t think the US gov. will do anything about this since this practice helps the US economy a lot, and hold down the inflation in the US too<g> Chinese gov. really has its hands full now. And only recently this issue caused some public attention. As a start, some scholars suggest should try to switch back to L/C system as much as possible, and as fast as possible. On the other hand, more and more exporting companies should learn some hard lessons after they lost big<ng>