HONG KONG — The United States didn”t “engage” China to make it rich and free, but it profited off the country, as the logic of American capitalism dictated US partnership with China, said an opinion piece by the South China Morning Post (SCMP) recently.
“It was Corporate America seeking higher profits that drove US policies toward countries including China and Japan,” the article wrote.
To counter Japan’s manufacturing might, US corporations were encouraged to move offshore their entire manufacturing base to developing countries with low labor costs, with China topping the list.
The shift proved to be extremely profitable for American multinationals.
The opinion piece cited Apple’s iPhone 7 as an example. The company left just 3.6 percent of its cost as profit margin to its numerous manufacturing partners in the Chinese mainland.
“The US is the one that sets up most of the rules and breaches them when it finds suitable,” said the article.
The many different trade and aid policies being pursued by China globally have been heavily criticised but can developing countries become more independent or will China’s policy reform?