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US Announces Withdraw From Postal Treaty

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Re: US Announces Withdraw From Postal Treaty

#141

Post by boomboomsubban »

Tsubasachan wrote: post #121
colechristensen wrote: post #27

Earlier quoted context omitted.

The idea of free trade/globalization is everyone benefiting from the efficiency of each place doing the work it can do most efficiently. Iowa corn and Swiss fine machinery and Arab oil and all sorts of things where one place can do something better and cheaper because of the nature of the place. Poverty (cheap labor) and treaties (cheap postage) shouldn't be the drivers of this efficiency because they aren't caused b…

I want to remind everyone that Chinese economy became what it is today because European, American and Japanese companies invested trillions in China. It was a Republican president who kicked it all off. A policy decision of pure capitalism.

Those areas made far more than they invested, and China needed that huge investment because those three areas had already spent a century exploiting it for profit.

Re: US Announces Withdraw From Postal Treaty

#142

Post by Spooky23 »

Tsubasachan wrote: post #121
colechristensen wrote: post #27

Earlier quoted context omitted.

The idea of free trade/globalization is everyone benefiting from the efficiency of each place doing the work it can do most efficiently. Iowa corn and Swiss fine machinery and Arab oil and all sorts of things where one place can do something better and cheaper because of the nature of the place. Poverty (cheap labor) and treaties (cheap postage) shouldn't be the drivers of this efficiency because they aren't caused b…

I want to remind everyone that Chinese economy became what it is today because European, American and Japanese companies invested trillions in China. It was a Republican president who kicked it all off. A policy decision of pure capitalism.

It was also a policy decision driven by necessity. Nixon didn’t go to China for the lulz, China was going down a bad path dangerous to the west and western business was hitting a wall in many ways as well.

Re: US Announces Withdraw From Postal Treaty

#143

Post by Spooky23 »

fzeroracer wrote: post #35
nostromo wrote: post #20

Earlier quoted context omitted.

They should pay the cost of shipping their parts from China to the US without a subsidy from the US taxpayer.

Of course you realize that this change will likely disproportionately affect the poor and middle-class (who will see a sharp rise in shipping costs) as well as smaller businesses who rely on thin margins to survive. The cost of $300 million per year as quoted in the article seems like peanuts compared to some of the other actions this administration has burdened tax payers with.

I doubt it. Chinese companies aren’t sending wholesale stock vis epacket. Losing consumer ability to by tiny quantities of fake LEGO or whatever in quantity 1 volume isn’t putting anyone out of business.

I would rather subsidize domestic shipping to lower barriers to e-commerce entrants if we feel a burning desire to subsidize something in this area.

Re: US Announces Withdraw From Postal Treaty

#144

Post by sgift »

Abishek_Muthian wrote: post #112
godzillabrennus wrote: post #2

A friend helped the Wall Street Journal expose the damage this treaty was doing to his small business in the United States as it tried to fend off counterfeiters. https://www.wsj.com/articles/this-subsidy-for-china-is-dumb-... Seems like a win for American innovation if you care about that thing. Seems like China is going to get hurt by this change which is bad for globalization if you are into that thing.

Would the outcome of these negotiations at-least end up creating a path to coin a universally accepted definitions of 'Developing Country' & 'Developed Country'? Is it HDI, industry or by Military Strength Index? If MSI is taken into account, then India & China are among the most developed nations!

I wouldn't hold my breath. The discussions about developed/developing are probably as old as the distinction itself and (as evidently shown here) many people have to win or loose depending on the classification of a country.

Re: US Announces Withdraw From Postal Treaty

#145

Post by patrickg_zill »

fzeroracer wrote: post #17
godzillabrennus wrote: post #2

A friend helped the Wall Street Journal expose the damage this treaty was doing to his small business in the United States as it tried to fend off counterfeiters. https://www.wsj.com/articles/this-subsidy-for-china-is-dumb-... Seems like a win for American innovation if you care about that thing. Seems like China is going to get hurt by this change which is bad for globalization if you are into that thing.

What about American innovation that relies on certain parts from China, such as the entire electronic industry which we operate in?

Until about 1998 I think, a lot of motherboards were made and populated in the US.

I remember taking apart an old Cisco switch that had "Made in USA" silkscreened on the motherboard.

Re: US Announces Withdraw From Postal Treaty

#146

Post by hef19898 »

Theodores wrote: post #128
godzillabrennus wrote: post #2

A friend helped the Wall Street Journal expose the damage this treaty was doing to his small business in the United States as it tried to fend off counterfeiters. https://www.wsj.com/articles/this-subsidy-for-china-is-dumb-... Seems like a win for American innovation if you care about that thing. Seems like China is going to get hurt by this change which is bad for globalization if you are into that thing.

It helps to understand the history of the postal system, which was archaic and impractical until Sir Rowland Hill came along with The Penny Black: https://en.wikipedia.org/wiki/Rowland_Hill The basic principle is a simple one, a letter could be sent to any address in the UK at the universal rate. There would be no surcharges just because you lived in a remote part of Wales. Equally there would be no discount because…

In terms of supply chain set-up, particularly the distribution part of it, there always is a warehouse somewhere. Even the parts you are buying from China are seeing multiple warehouses, sortation centers and cross-docking sites before they arrive at you destination.

Right now the low shipping costs for parcel-sized orders make this set-up, with stock as far from customers as it probably can, economic. Once this cost advantage is gone the last-mile performance from "local" warehouses, read warehouses on the same continent or in the same country, is winning the day.

In short, it is likely that the majoprity of the inventory is moved from China to the individual markets by someone. If this Amazon that would mean competition for seller doing drop-ship out of China. Still, even Amazon is offering FBA-services for the procurement part from China using Amazon container lines. Or it is some sort of wholeseller who is just covering the import part, maybe even up to warehousing.

I see a business opportinity for a logistics provider offering bulk-import, storage and distribution for the existing dropshippers. Workling interfaces to Shopify and co. wouldn't hurt neither.

Re: US Announces Withdraw From Postal Treaty

#147

Post by patrickg_zill »

jarfil wrote: post #106
burfog wrote: post #70

Earlier quoted context omitted.

Fixed it for you: This change will likely disproportionately affect the poor and middle-class (who will see a sharp rise in manufacturing jobs) as well as smaller businesses who rely on manufacturing to survive. Given the state of the economy, "burdened" is not a reasonable description.

Manufacturing jobs are a thing of the past, even China is automating more every day. When "the jobs come back", it won't be to employ the poor and middle-class but to set up automated production. Which, this time around, will be more competitive than low waged Chinese workers.

There is a multiplier effect of manufacturing jobs.

Re: US Announces Withdraw From Postal Treaty

#148

Post by hef19898 »

michaelt wrote: post #131
anjc wrote: post #91

Earlier quoted context omitted.

> People who actually wanted to do things well... You think intermediaries (e.g. dropshippers) can't add value to a supply chain? I don't know why you'd be so uncaring about /r/entrepreneurs when these are generally just people trying to get by as best they can. Having said that, this treaty withdrawal is still a good idea.

You think intermediaries (e.g. dropshippers) can't add value to a supply chain? These days, don't Chinese companies mostly list the products on Ebay and Amazon themselves? Just today I ordered something on Ebay and got a paypal receipt for my payment to 覃尚田. I don't see what value an extra intermediary adds in that situation?

Dropshippers add range and access to market segments the manufacturer, or wholesellers, cannot ofer. These dropshippers are able to go after small customers with low order volumes. So they indirectly add value by increasing revenue.

they also cut out other middlemen like wholesellers and brick-and-mortar retailers. Done well, and at scale, this could be one of the more serious thrats for Amazon in the future.

Re: US Announces Withdraw From Postal Treaty

#149

Post by spiralx »

michaelt wrote: post #131
anjc wrote: post #91

Earlier quoted context omitted.

> People who actually wanted to do things well... You think intermediaries (e.g. dropshippers) can't add value to a supply chain? I don't know why you'd be so uncaring about /r/entrepreneurs when these are generally just people trying to get by as best they can. Having said that, this treaty withdrawal is still a good idea.

You think intermediaries (e.g. dropshippers) can't add value to a supply chain? These days, don't Chinese companies mostly list the products on Ebay and Amazon themselves? Just today I ordered something on Ebay and got a paypal receipt for my payment to 覃尚田. I don't see what value an extra intermediary adds in that situation?

> These days, don't Chinese companies mostly list the products on Ebay and Amazon themselves?

Yes, it's pretty standard to find the same company with store-fronts on AliExpress, Ebay and Amazon. It's sometimes worth checking for differences in prices though due to lag in updating each catalogue.

Re: US Announces Withdraw From Postal Treaty

#150

Post by xaqfox »

michaelt wrote: post #131
anjc wrote: post #91

Earlier quoted context omitted.

> People who actually wanted to do things well... You think intermediaries (e.g. dropshippers) can't add value to a supply chain? I don't know why you'd be so uncaring about /r/entrepreneurs when these are generally just people trying to get by as best they can. Having said that, this treaty withdrawal is still a good idea.

You think intermediaries (e.g. dropshippers) can't add value to a supply chain? These days, don't Chinese companies mostly list the products on Ebay and Amazon themselves? Just today I ordered something on Ebay and got a paypal receipt for my payment to 覃尚田. I don't see what value an extra intermediary adds in that situation?

Faster shipping, added support, ease of returns. I am sure there are many other ways those "useless middlemen" could also add value.
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