See, this is the stuff that bothers me about international trade. Why would some countries import and export the same thing at the same time?
IMO the reason is that they aren't the same. Melamine tainted powdered milk is imported to make cheap stuff and good quality powdered milk is exported to make luxury items with "imported ingredient".
They are also used to get around duty, export subsidizes, tariff, quota, and tons of other stupid trade tactics. One could think of it as why would nations want military when you save a ton of money by every country eliminating its military at the same time.
The reality is: people and countries do stupid things because they cheat, and wants to prevent others from cheating, so we will never achieve the utopia of perfect efficiency, and can never guarantee to be free from mutual destruction.
My cousin in law works for Lite-On and he said that many components were build in China, shipped to Hong Kong, then shipped back to China to meet some quota or subsidize standards. He also said the main reason for many factories in China locating near concentrated and expensive cities is the ease to get through custom, rather than being the shortest transportation path.
We haven't seen nothing until we see all the back room deals and dirty little secrets in trade wars.
IMO the reason is that they aren't the same. Melamine tainted powdered milk is imported to make cheap stuff and good quality powdered milk is exported to make luxury items with "imported ingredient".
They are also used to get around duty, export subsidizes, tariff, quota, and tons of other stupid trade tactics. One could think of it as why would nations want military when you save a ton of money by every country eliminating its military at the same time.
The reality is: people and countries do stupid things because they cheat, and wants to prevent others from cheating, so we will never achieve the utopia of perfect efficiency, and can never guarantee to be free from mutual destruction.
My cousin in law works for Lite-On and he said that many components were build in China, shipped to Hong Kong, then shipped back to China to meet some quota or subsidize standards. He also said the main reason for many factories in China locating near concentrated and expensive cities is the ease to get through custom, rather than being the shortest transportation path.
We haven't seen nothing until we see all the back room deals and dirty little secrets in trade wars.
