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Meanwhile, the Chinese government is trying to pass some of the blame to the exporters and US companies who accepted the products.

So many American companies transferred manufacturing to China to save money, and retailers like Wal-Mart encouraged this strategy. Now they are paying the price.

We take for granted the numerous regulations in the US designed to protect us. We’re now seeing the risks of outsourcing. Of course outsourcing a trade will continue, but relying on Chinese components and products just got a little costlier.

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News Corp. not doing well in China:

Not sure if this was Murdoch trying to manage expectations but he was emphatic about the difficulties News Corp. faces in China, especially with MySpace. “We don’t do very well in China. … All I would say there is that nobody—and I challenge anyone to argue this—nobody, none of the American media companies or British media companies have made any impact there yet. … It is a vast market, but it is certainly a very, very sensitive one and as we have seen what happened to Google there and what happened to eBay there, it is very difficult, even to—to Yahoo, it is a very difficult market for outsiders.”

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