China: the new economic giant

[Say_What]

<clips>

WASHINGTON now has a favourite game: blaming East Asia for the economic ills of the United States. In the mid-1980s US ire focused on Japan and the newly industrialised countries (NICs), which were intensely pressured to revalue their currencies and open their economies to US trade and foreign direct investment. Now it is China's turn to face aggressive US trade diplomacy. The ostensible reason for this is the rising US trade deficit. But there is a deeper concern: China's new role as the engine of regional integration in East Asia, an unintended consequence of US mismanagement of the 1997-98 East Asian financial crisis.

On 18 July 2003 many voices in the US accused China of being the main culprit causing the chronic US trade deficit, rising unemployment and the destruction of textiles and electronics manufacturing industries. "US manufacturing industry has been getting killed," complained Senator Charles Schumer. "The Chinese yuan is being devalued artificially, causing a flood of lower- priced foreign goods that our companies can't compete against," concurred Senator Elisabeth Dole. "The Chinese cheat on their trade agreements . . . the Treasury needs to look into this and take appropriate action to ensure the Chinese aren't allowed to continue devaluing their currency to the detriment of our domestic industries," added Senator Lindsey Graham (1).

Testifying to Congress the day before, the Federal Reserve chairman, Alan Greenspan, had lent weight to these arguments, saying that China and other East Asian countries had undervalued currencies. He warned that their accumulation of large foreign currency holdings could not continue indefinitely (2).

The Senators officially asked the Treasury to pressure China to eliminate exchange controls and to float the yuan, which is pegged at 8.3 to the dollar. The furore died down in August, but in September Treasury Secretary John Snow, on a tour of Asia, again exhorted China to "let the market price the currency" - which seems curious behaviour by an administration in dire need of Chinese help to deal with North Korea and Asian regional security.

http://mondediplo.com/2003/10/08china

[ixion]

1. Seems our GOP counterparts only like capitalism if

it suits the interests of US corporations... China has been moving up the economic ladder for some time now, and although I'm not impressed with the quality of the products they produce (much of it is garbage, IMHO) it's a buyers market... Caveat Emptor, and all that.
Isn't it funny how the GOP is always talking about taking responsiblity for one's actions, but when it comes to their own actions, it's always someone else's fault? :eyes:

[fishnfla]

2. Thank You Wal-Mart

WM is responsible for 10% of the goods imported from China into America

[theivoryqueen]

3. I have long wondered

if the "powers that be" aren't already primed to capitalize on the newer and thus, richer economic landscape of China. Perhaps that is why there is a lack of concern over the loss of jobs in the US, the exportation of technology and manufacturing, as well as seeming indifference to the massive deficits running in both the federal and state systems and in the credit card and other debts of our citizenry. It would make sense if the plan is to simply pick up and move along to the next emerging powerhouse of potential spending. (as a southerner, we refer to these folks as Carpetbaggers)

[mainegreen]

4. They're still not a G8!

[Maine-i-acs]

5. Welcome MaineGreen!

Nice to see more Maine-ahs around!

ABB '04

[IMayBeWrongBut]

8. They are the second largest economy in the world...

http://www.cia.gov/cia/publications/factbook/geos/ch.html

If you scroll down to the economy section you will see that China's GDP is 5.7 Trillion.

[sujan]

9. not to worry

they will be G-1 soon.

[The Zanti Regent]

10. China will beat us to Mars and beyond

Given the KKKristian Lysenkoism De Lay and his clowns are imposing on America, we are well on our way to becoming a third rate power.

While students are discouraged from pursuing science and math and force fed Bible studies, China is well on it's way to becoming the world's dominant power.

When they get to the moon, construct a moonbase and head for Mars while our best and brightest debate a stupid book of fairy tales, remember I warned you. I told you so!

[Goldenboy]

6. Trade argument based upon faulty assumptions

To blame China for rising unemployment in the US and for having an undervalued currency is really a crock of an argument.

First of all, who are the parties most responsible for moving many jobs out of the US? That's right, American corporations in search of lower cost labor. Can you then blame China for having a lower wage workforce?

Second of all, if China actually would float their currency, would it wipe out the trade deficit with the USA and the long term trend of outsourcing of much manufacturing to low cost locales like China? Hardly.

Yes, China is a tough negotiator on trade and other issues. But that's only a surface issue---it doesn't change structural trends that have been going on for decades.

[cliss]

7. I agree.

why should the US ask the rest of the world to clean up after its messes? Just because we comprise 5% of the world's population, but consume 25% of something or other???

The Bushmeister is going to have to learn the hard way that the rest of the world (the other 95%) may have ideas of its own, and to dance to the US's fiddle is a losing proposition.

Emissaries for American businesses make such bad statesmen.

(jeez, really good writers here. And I thought I was good!)

[Some Moran]

11. I hope Taiwan whoops China's ass...

Chinese people need and deserve competent leaders like Lee and A-bian...Not the Red Fascist morans running the show right now.

[TahitiNut]

12. Not LBN

Probably best characterized as an Op/Ed opinion piece, this article is also about 2 weeks old. I'm moving it to the Editorials and Other Articles forum where, hopefully, it will attract the discussion it deserves.

Thank you for your understanding and ooperation,
TahitiNut - DU moderator