From the Office of UAW Local 659 President Walt Duvernois

Like many people, I enjoy those little "Didja know" columns seen in newspapers and magazines. This article is kind of like that. "Didja know?" A Chinese economic stimulus package has been in effect for a lot longer than the U.S. economic policy. China's plan is called the "consumer economic stimulus policy." Chinese consumers are given subsidies for purchasing designated products. At the moment, the focus is on high technology. Chinese made goods, such as televisions and other electronics that require a considerable degree of engineering expertise, are some of the designated products chosen for subsidies. Chinese consumers can buy big screen televisions for as low as $512 (a manufactured goods at subsidized prices?) It all has to do with the way China deals with foreign manufacturers wanting to do business in their country. If a foreign-owned company wants to build a factory in China, they must partner up with an approved Chinese owned company. Companies, such as GM, Ford and Chrysler have partnered with various Chinese companies to build factories to produce American designed and engineered cars and trucks. Once GM (using GM as the example) agreed to build cars in China, they also agreed to share industrial secrets with the Chinese. GM then provided, or gave access to China, information relating to engineering, manufacturing processes, technical know-how and scientific expertise critical to building modern cars. What did the Chinese do with their gift basket of GM's previously secret technology? They build factories to build cars to compete with GM products! When GM sued because a Chinese company was building a car just like the one they had designed and built, the suit went nowhere in the Chinese court system. In effect, China told GM, "stick it in your ear, we got what we wanted and you can't do anything about it!"

Now, getting back to the subject of why it is so important for the United States to understand how the Chinese "consumer economic stimulus policy" is hurting our homeland companies doing business in China. Consumer subsidies create a greatly expanded false market giving the illusion of a growing number of customers demanding products that, in fact, they could not afford without subsidies. The Chinese use that false information to lure foreign companies to set up shop in China. When they do, the authorities appropriate the technology of the guest company and use it to build their own factories. They, in turn, discourage their people from buying foreign made products and sometimes boot out foreign manufacturers. GM, Ford, Chrysler and many other companies have fallen victim to this blatant ruse and suffered for it. To their credit, the Japanese learned early on that the Chinese could not be trusted. The Japanese wisely keep their most advanced technology secret and within their own shores. American companies should have investigated Chinese intentions more thoroughly before they gave away our hard earned know-how and technology.

Although, I am somewhat reluctant to compensate for the stupidity and ignorance of some of our business leaders and trade negotiators, we can do something about the Chinese failure to obey American and international patent and proprietary information laws. We could designate one month a year as the "don't buy anything made, produced or grown in China" month. Not only would that knock a big hole in our trade deficit with China, it would give a big boost to our domestic industries. We could keep such a boycott going until we got a fair shake from China. If America does nothing to rein in China's theft of our children's future, they may not see "Made In America" tags except in museums!

The Officers and Staff of Local 659 wish you a happy and safe Thanksgiving holiday.

The murders of 13 of our faithful soldiers at Fort Hood, Texas by a hate-crazed monster, gives greater urgency for us to pray more fervently for the safety of all our men and women in uniform. Pray for God to bless them and keep them under His care.

Until next time,

/s/ Walt Duvernois, President

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