podcast - "Blowing up the WTO would be the worst scenario", Ari van der Steenhoven
"Blowing up the WTO would be the worst possible scenario," says Ari van der Steenhoven, former China-manager of the Dutch chemical concern DSM from Shanghai in a reaction on my article on the competition between China and Europe. He point at the influence of foreign companies in China, where I disagree.
Van der Steenhoven remains outspoken on the way politicians and higher civil servants. "They underestimate the problem we are having," he says. "They say, we have had this before, we will survive this." Van der Steenhoven is less sure
Listen our our full conversation here.
Do you want to react? Send me an email or Skype me. (Still a bit too much busy with the technical side of this experiment, but that should improve over time.)
Here are Van der Steenhoven's remarks on my article:
Did you take into account that:
1. China's export is more than 50% by FIE's, most probably paying their taxes, fees and taking care of the environment?
2. That the reduced inflation during rising oil prices is caused by the lower costs of goods from China, making it responsible for a higher standard of living in the West?
3. That the baby boom retirement makes it common sense that governments will increase the retirement age and lower pension liabilities before the welfare system bankrupts?
4. That commodities and other products where unskilled and semi skilled labor costs are important, are indeed moving to China to the last product, whatever you do or might want to support? (Indeed the goivernments have no effect on it, unless they blow up WTO).
5. That those companies that want to retain those facilities in Europe are bypassed by competition that does not?
6. That in China the unemployed rate is still > 50% and the government's number 1 priority is to get that figure down?
7. That a significant welfare system in China would increase costs that would slow down the economy's growth and reduce employment?
8. That taxes and welfare already amount to 50% of the average salary, going up to 70% for higher salaries.
9. That Chinese do not understand why it would be the God given right of Europeans to have a job, to have a higher living standard, long holidays, good welfare and Chinese would not?
(Oh yes: I used Powergramo to record all this.)

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