118. The Difference of Definition for Trade Deficit between China and US

4 April 2018

Recently the focus of the new is about the Trade War between China and US, and people have been attracted by the issue.

From my prospective, the report about Sino-US trade issued by Deutsche Bank on March 27th can narrate this issue clearly to the public.

The trade deficit of Sino-US trade was thirty billion US dollar in 2015, rather than 360 billion US dollar. Different calculation methods have caused such a big difference.

Take Apple Inc. as an example, it has occupied 86 percent of total global cell phone’s market profit, which only delegates the authorization to Foxconn from Chinese Taiwan for cell phone assembly assignment in mainland factory.

The only contribution of Apple Inc. just provides some jobs. However, I dare to say that it has earned 99.9 percent profit definitely.

Chinese government makes Apple Inc. sell their products with the value of USD one hundred billion for only thousands of workers employed by the Apple Inc.

I can only make a definition that such a calculation method is completely ridiculous without any reliability if US does not involve such an amount (USD one hundred billion) in trade volume from US to China.

Why does Apple Inc. employ thousands of Chinese workers to work for them to assemble iPhone in mainland?

Such a question shall be replied by an American, Mr. Cook. This is a domestic issue and Chinese people shall be not involved in.

There is an ancient proverb that no debts without creditors. Apple Inc. has made slight contribution to China and nearly 99.9 percent profit has been obtained by Cook, CEO of Apple Inc.

American shall complain to Cook. America has only thirty billion US dollar trade deficit with China, or in other words, nothing exists.

No need complaining to Chinese people. Complain to the people or group who has obtained money actually.

I emphasize that internet, IT, artificial intelligence like robots shall alter the production mode which used to be realized by employer and employee, modify the fortune distribution form and treasure flowing trend. All the capitalism theories shall utterly be collapsed.

Apple Inc. is a typical case. The people from US and China both do not obtain any benefit, especially for people from America.

Fortune has been allocated to the minority with great extent like people represented by Cook. There is no offence to Mr. Cook. They are only businessmen who are dealing with commercial works for shareholders. The only thing we should concern is how to realize a new fortune distribution form. That is only a start and will become seriously.

One iPhone sells at five thousand RMB. In its cost, how much is the salary for the all the workers Apple Inc. has paid to? The charge for designer is involved in manual cost. How much to be paid to the workers responsible for manufacture process of each component? How much to pay for the technicians of assembly as well as sales staffs?

I can tell you the truth that such a cost is much lower as your expectation. All the procedures shall be executed by the machines or intelligent robots rather than handwork.

With the development of network science and robot technology, assembly work will be executed by the robots, sales will be done by the robots through network, instead of promotion made by staff to each customer.

Therefore, Apple Inc. will pay less to the employees and purchase automatic equipments as their major investment.

Moreover, the capitalists and owners will earn more and more money as their profit.

That is the fundamental reason for the widening gap between rich and poor in capitalism society.

The development of network and robot technology shall result in existence of richer capitalists and less workers. Any effort shall be invalid unless solve the issue of fortune distribution.

How much is the salary of workers paid by the capitalist for USD ten billion products manufacture at the initial stage of capitalism establishment, beginning of USA founded or the duration of President Washington period?

How much is the salary of workers currently paid by Apple Inc. for the sale of cell phone with value as USD one hundred billion?

I have not made the statistic, and I am not an expert, a professor or a government officer. However, I understand that the gap between those two amounts are incredible. Those experts, professors and government officials who exactly know those clearly are frightening to tell anybody. They survive on cheating and fooling.

That is the truth of the gap between rich and poor which shall be the origin of current social conflict. That is the basic evidence that the social system, ideology and theory of capitalism and the lies such as success shall be achieved by struggle shall be amended after complete collapse.

Of course, China also has cell phone manufacturer, such as Huawei. I know Huawei’s profit must be much lower than Apple Inc.

Huawei has paid nearly the same salary to the workers as Apple Inc. paid for the sales of cell phone for USD one hundred billion. Proportion shall be with no difference. There does not exist fundamental difference because the equipments are similar as well as sales method.

Those two vendors’ proportion of workers’ salary are similar. China does not exist such acute conflict between employer and employee as America because of social system and stated owned enterprise. They can properly solve and adjust such an issue in terms of social fortune distribution.

In china, most of the state-owned enterprises are monopoly enterprises which are all basic supply enterprises, such as land provision, road, traffic, telecom, and energy source.

Upon compulsory and monopoly profit brought by those enterprises, it takes great effect in aspects of social fortune distribution and social management with proper adjustment made by the government authority.

Chinese government has perfectly solved issues regarding unemployment workers, retired people’s pension and social insurance by the profits obtained from monopoly state owned enterprises and land provision.

Retired people are joyful and satisfied with timely paid pension which shall be increased 10 percent annually.

China also develops internet and robots with full energy which shall widen the gap between rich and poor. However, it is advanced productivity to be upgrading with compulsory power.

Simultaneously, proper policy and regulation can be utilized as guidance for social fortune distribution with justice and fairness.

Many network spies in China advocate that capitalism country has good social welfare currently. For instance, citizens in Russia enjoy high welfare much better than citizens in China.

They ignore that Russian live for natural gas and energy as blessed by the God. However, Chinese people live upon diligence. Those two life styles are totally different.