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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Kailash who wrote (64950)	3/31/2007 9:18:39 PM
From: ajtj99	Respond to of 116555

It' so bogus. If they slap punative duties on Chinese goods, there are ways around it. Mexico has some nasty anti-dumping duties on Chinese goods for some years now. The Chinese goods are just made in China, shipped to LA or Taiwan and have "Made in Taiwan" stickers put on them, and they're re-shipped to Mexico without the punative anti-dumping duties. If a new Schumer bill passes, most folks will find a way around it if it's bad enough. China will likely try to head off some of this action by further reducing the tax rebate, which is around 10-13% currently. In fact, the recent change in the tax code in China that lowered the effective tax rate from 33% to 25% for Chinese companies may be a prelude to a reduction in the tax rebate, which would increase the effective tax receipts for the government.