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  • How US enables China to sell tools cheap in USA

    "As U.S. Postage Rates Continue To Rise, The USPS Gives The Chinese A 'Free Ride'


    https://www.forbes.com/sites/wadeshe.../#758d635873da


    As the rates of the U.S. Postal Service continue on their precipitous ascent, how cheaply Chinese merchants are able to ship their products thousands of miles across the world to the United States has become emblematic of the stark trade imbalance between the countries as well as the disadvantages that American companies are up against as foreign competitors outmaneuver them in their own backyard.

    As you browse through the listings on sites like Amazon and eBay it is almost impossible not to be amazed at how cheaply China-based merchants are selling products for: xlr cables for $.99, a necklace for $.78, 10 watch batteries for $.78 -- all with postage included."

  • #2
    Its not just the US, same thing here.....its an unanticipated consequence of the (outdated) International Postal Union. imo what is going on is wrong and we should be upset about it and governments should act
    .

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    • #3
      I was able to have bearings delivered to my door for less than the gas it would take to drive 1 way to a bearing supply house.

      I don't see the trend reversing any time soon.

      The USPO needs a rate change.

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      • #4
        Originally posted by Mcgyver View Post
        Its not just the US, same thing here.....its an unanticipated consequence of the (outdated) International Postal Union. imo what is going on is wrong and we should be upset about it and governments should act
        Governments did act at the behest of their corporate masters. That's how we got where we are.

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        • #5
          The USPS rates are like a like a dripping pipe in a flooded house...

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          • #6
            Yeah, it costs them little to nothing to ship things here. But heaven forbid if you want to ship something to them.


            Sent from my iPhone using Tapatalk

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            • #7
              Originally posted by softtail View Post
              Governments did act at the behest of their corporate masters. That's how we got where we are.
              ????

              that doesn't make any sense to me, can you explain what you're talking about? You understand how the International Post
              Union & trety is suppose to work and why it isn't in this case?
              .

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              • #8
                Originally posted by Abner View Post
                .....

                The USPO needs a rate change.
                The USPO is FORCED by congress to raise rates, since they are being forced to fund their pensions far beyond the time horizon that any corporation is required to fund. THIS IS SPECIFICALLY, DELIBERATELY INTENDED TO PUT THE USPO OUT OF BUSINESS, apparently so that UPS and Fedex get the business (and pay the congresscritters handsomely for the freebie).
                1601

                Keep eye on ball.
                Hashim Khan

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                • #9
                  Originally posted by earlwb View Post
                  Yeah, it costs them little to nothing to ship things here. But heaven forbid if you want to ship something to them.
                  Exactly. And that's what needs to change. We need to force them to reciprocate, or put a hefty tariff on their products to pay for the postal differential...and any other differentials that need accounting for. The only thing they will understand is economic/trade hardball.

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                  • #10
                    Then you need to do that with all countries. Under current laws (literally world wide) once an item is placed in a postal system it is the responsibility of the recipient county to deliver it.

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                    • #11
                      Originally posted by lakeside53 View Post
                      Then you need to do that with all countries. Under current laws (literally world wide) once an item is placed in a postal system it is the responsibility of the recipient county to deliver it.
                      The unilateral nature of the flow is in part a problem, but i think the real problem is China heavily subsidizes the cost of getting to an destination port. If the Chinese company actually had to charge you what it really costs, they'd lose much of their current advantage. AFAIK China is offside with this, the IPU is based on each postal service charging sustainable rates.....thats what we should be upset with
                      .

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                      • #12
                        But do they subsidize? seem like an easy thing to say but their costs are a tiny fraction of ours. They are most likely charging "sustainable" rates.

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                        • #13
                          Originally posted by J Tiers View Post
                          The USPO is FORCED by congress to raise rates, since they are being forced to fund their pensions far beyond the time horizon that any corporation is required to fund. THIS IS SPECIFICALLY, DELIBERATELY INTENDED TO PUT THE USPO OUT OF BUSINESS, apparently so that UPS and Fedex get the business (and pay the congresscritters handsomely for the freebie).
                          Pensions are a ticking time bomb everywhere. I would be happy with 5 day a week mail instead of 6, or 4 for that matter. Large corporations are in charge, that is a fact, the only solution is to not play in their sandbox if you can( says the guy buying Chinese lights from a large retailer).

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                          • #14
                            The postal rates may be a factor in the low Chinese prices and it probably needs to be fixed. But it is hardly a major one.

                            The real differential is in the wage and benefits expectations of US and Chinese workers. And probably in the differences in the profit expectations of US and Chinese companies. China is still coming up from third world, poverty status. They are catching up, but we have a big lead there. So, they can manufacture an item for far less than we can here. That is the real and basic reason why things made in China can cost far less than US manufactured ones. This situation will self correct as the Chinese standard of living rises, but that will take decades.
                            Paul A.
                            SE Texas

                            Make it fit.
                            You can't win and there is a penalty for trying!

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                            • #15
                              Originally posted by Abner View Post
                              Pensions are a ticking time bomb everywhere. I would be happy with 5 day a week mail instead of 6, or 4 for that matter. Large corporations are in charge, that is a fact, the only solution is to not play in their sandbox if you can( says the guy buying Chinese lights from a large retailer).
                              Pensions CAN BE a ticking time bomb. My company was a subsidiary of AT&T back in the 70s. They had a great pension plan that was FULLY FUNDED. The money was invested and worth billions. Remember, that was the days when you'd start working at 18 and stay there till 65, so money was invested for 40 years or so. Keep in mind that in exchange for that great pension, we accepted good wages that were below market when compared to similar jobs in the private sector. Example; I left a $63K a year job to take one doing the same thing for $95K.

                              The point is, the portion of our wages that we did not get paid was invested in the pension fund, and it was worth tens of billions of dollars when we merged with South Western Bell (SWB). The pension fund was 100% separate from company funds. They converted it to a 401K so they could take the growth from the investments and roll it back into the corporate coffers. They had to leave enough to fully fund those already collecting pensions and still reaped billions from that change.

                              On the other hand, a family member works for the county of San Diego and will be retiring soon with 33 years. She will receive 103% of her salary for life. She's 57 years old. San Diego does not have a pension fund. They will be paying it out of taxes collected.

                              In short, a fully funded pension fund is not always a liability. Properly done, it allows the company to reduce costs because they can offer lower pay in exchange for the future pay back. Improperly done, it's a liability for decades.

                              Dan
                              At the end of the project, there is a profound difference between spare parts and extra parts.

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