Obscenely Crazy Postal Welfare For Chinese Businesses Shipping To USA -- Paid For By U.S. Taxpayers
I could never figure how some cheapo product on eBay, coming from China, could ship for free or just a few cents. Well, the answer is in Forbes. Wade Shepard writes:
It's actually no secret as to how the Chinese are able to ship products abroad so cheaply. The reason is actually rather simple: They receive subsidized postage rates.But before you scoff and think this is just another example of Beijing disrupting fair trade and tilting the tables in support of their domestic producers, please realize that you've pegged the wrong government to be the recipient of your complaints. These super low shipping rates are being subsidized by the U.S. Postal Service. Yes, the United States and, in a roundabout way, the U.S. taxpayer is footing the bill so that Chinese merchants can ship their products to the USA for dirt cheap, essentially losing millions to support a dynamic where domestic American businesses are being undercut by foreign merchants who are immune to any and all intellectual property and consumer safety laws.
In 2011, the U.S. Postal Service made special agreements with the national postal carriers of China and Hong Kong (and subsequently South Korea and Singapore) to allow tracking-enabled packages not exceeding 36" or weighing over 4.4 pounds to be sent to the U.S. for extremely low rates. They called this shipping option the ePacket, and the rates are so low that it's cheaper to ship small parcels from China to an American city than it is to send that same parcel domestically. As Amazon's Vice President of Global Policy Paul Misener pointed out:
"The cost to ship a one-pound package from South Carolina to New York City would run nearly $6; from Beijing to NYC: $3.66."
While sending that same one-pound package from New York City back to Beijing via USPS International Mail would cost in the ballpark of $50.
This state of affairs also makes Chinese merchants virtually immune to returns from U.S. customers, turning international e-commerce into a one-way street.
This is why the Chinese business that sold me underwear on American eBay -- not mentioning that the size was Chinese (and thus far smaller) -- told me to send it back to them. Shifty bullshit.
They make it impossible to get in touch with them. The thing is cheap and I am working day and night, so I'll probably just eat the cost, but I hate to let people get away with shifty shit like this.
Meanwhile, it cost $26 dollars to mail my 11-ounce trade paperback of "Unf*ckology" (available for about $10 with Amazon's discount!) to the type designer in Hungary who did the final illustration (last page of last chapter).
And these prices -- this wonderful gift to Chinese business -- makes it impossible for American businesses to begin to compete. (And later in the piece, see how the UN has fucked with markets, too, with forced lower shipping rates for some countries -- including China.)
via @_ice9








How long does this agreement last? Or is it perpetual? Maybe Trump just needs to be made aware it exists and it will disappear.
Ben at September 7, 2018 6:58 AM
Hungary?
Radwaste at September 7, 2018 7:38 AM
This is the problem with too many US government agreements with other countries lately. Having an agreement seems to have become more important than what the agreement actually says. As a result, anything that speeds along the signing of the agreement is agreed to.
Without an actual fiduciary interest, the US negotiator too often elevates getting an agreement, any agreement, to primary importance and is unwilling to walk away. It is not the US government's job to promote the growth of another country's industry. Our trade representatives seem to have forgotten that of late.
Unfortunately, this also proves Trump's oft-argued point about the US being in too many one-sided trade deals.
However, it's not just trade deals that suffer from this "any deal is better than no deal" mentality. For example, the Iran nuclear deal contained no verification mechanism and contained few to no penalties for non-compliance, because the important thing for the US negotiators was not actually reducing the nuclear threat, but getting a deal in place. Not to mention that the deal did not address any of Iran's other global transgressions, like open support for terrorist organizations and fomenting unrest throughout the Middle East. So, we shipped them pallets of cash they could readily use to fund Hamas attacks on Israel.
Conan the Grammarian at September 7, 2018 9:32 AM
The type designer who did a needlepoint font I liked was in Hungary.
Amy Alkon at September 7, 2018 10:22 AM
And Conan, you make great points -- the desire to get an agreement taking priority over the big picture: screwing the American taxpayers.
Amy Alkon at September 7, 2018 10:39 AM
Without an actual fiduciary interest, the US negotiator
S/he might have a fiduciary interest. It just may not align with the interests of the taxpayers in the USofA.
While one hopes that such lofty positions are well insulated against graft and corruption they are still human.
I R A Darth Aggie at September 7, 2018 12:14 PM
Well, if He-Who-Shall-Not-Be-Named-On-This-Forum truly wants fair trade deals with places like China and South Korea, he would be wise to eliminate the special postage rates.
mpetrie98 at September 7, 2018 1:16 PM
The incompetence of US negotiators is even worse than we thought.
Matthew Continetti review chief Iran deal negotiator, Wendy Sherman's new book, Not for the Faint of Heart: Lessons in Courage, Power, and Persistence:
So, our go-to negotiating tactic with Iran was to weep? That's courage, power, and persistence?
And notice that her openly expressed lament was that the Iranians tactics were "jeopardizing the entire deal." With that emotional outburst, she revealed to the Iranians that getting a deal, any deal, was the important thing to her.
She goes on, justifying her histrionics.
Of course he dismissed his objection. He'd found your weak spot. You needed a deal, any deal. It was just paper to you. He knew then that he could violate at will any deal you reached, as long as you could say you got a deal.
Out of that, she got that the lesson was showing your opponent that you're "authentic, persistent, and committed" with sobbing hysterics is how to negotiate?
That means I got negotiating all wrong when I bought my first car out of college. I simply sat there and told the guy calmly that I would not pay the interest rate that he kept pointing out in a loose leaf binder was the "going rate." Funny thing, the interest rate the dealer finally agreed to was less than half the one originally proposed.
Conan the Grammarian at September 8, 2018 7:41 AM
Many of us were aware of this issue Conan. I remember listening to her on NPR. She was complaining about her critics and how what they wanted wasn't reasonable. In her words you were negotiation against yourself if you wanted to get anything more out of the Iranians. She clearly didn't have the concept that not reaching a deal was an option.
And she isn't alone. Getting a deal (any deal) is something you can put on your resume as an accomplishment. And most likely no one will ever check if the deal was actually a good one or not. Failing to get a deal doesn't get you anything. So the incentives are obvious.
As for this USPS deal, I expect it is just a standard contract. Not a treaty or anything more complicated that would require congressional approval. And given standard boilerplate there should be an exit clause in there. Which is why I suggested pestering Trump about it. He probably has the authority to end this all on his own. And these are the kinds of things he likes ending.
As for fixing government negotiators, good luck. You can clean things up for a while. But one people stop looking over their shoulders and complaining they will fall back into the same old pattern.
Ben at September 8, 2018 9:16 AM
There’s the same issue with special prosecutors. They have no incentive to admit they couldn’t find any evidence of wrongdoing. So they just keep digging.
Conan the Grammarian at September 8, 2018 11:12 AM
Yep. And then they end up with some pointless unrelated thing.
Ben at September 9, 2018 6:00 PM
Do you wonder how shipping to China is significant, when the subsidy of advertising isn't?
That fat package from Capital One isn't magically less trouble to carry than a first-class letter, yet here one is, every week, for less-than 1st class rates!
Radwaste at September 12, 2018 10:15 AM
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