Wednesday, June 21, 2006

When Fraud Is Good

EU Observer reports, based on a story in Swedish business website N24 that Chinese textile exporters have learned a way of circumventing EU quotas of Chinese textiles: by simply export it to neighboring countries, especially the "Special Administrative Region" of Hong Kong, who then re-label it and then export it to the EU.

This is of course fraud, but sometimes fraud is justified. And in the case of the unjust EU quotas of Chinese textiles it is definetly justified. This way, poverty in China can be reduced while us EU consumers gain. While some of China's competitors inside and outside the EU may lose, that is a lesser evil compared to increased poverty in China and higher prices here.


Blogger Oberon said... just boggles the mind.

5:38 AM  

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