Posted on 02/15/2005 9:35:35 PM PST by maui_hawaii
A trade conference in Washington Tuesday focused on the U.S. China trade relationship, in which China has a huge and growing surplus.
Experts say traditional bipartisan support in Congress of free trade is being eroded by China's unwillingness to take measures to redress the trade imbalance. "Our trade agenda is going to be a captive of discontent with our trade relationship with China, Including their currency manipulation, their failure to honor intellectual property rights, their discriminatory tax and subsidy structures," said Phil English, a key congressional Republican on trade policy in the House of Representatives.
Mr. English says members of Congress are increasingly frustrated by what they see as a continuing loss of manufacturing and now service jobs to China. His counterpart among Democrats, Sandy Levin, accuses the Bush administration of failing to enforce U.S. trade law in dealing with China. "So, essentially we've had a once over lightly approach by this administration. Secretaries go over and come back. They say they've said this or that, usually privately. And nothing really happens," he noted.
Much of the discontent relates to China's refusal to adjust its fixed rate currency link to the dollar that has been unchanged for 10 years. "I think China will be a target and should be a target as far as the exchange rate is concerned because this policy really is contributing to trade disequilibrium," said Mac Destler, an economist at the University of Maryland, who is among the many experts who believe the currency peg keeps the yuan undervalued and gives an advantage to Chinese products in the U.S market.
But banker Robert Rubin, treasury secretary from 1995 to 1999, said if China's revalues the yuan the country may cut back on its purchases of U.S. government bonds. That, he said, could send the dollar even lower and interest rates higher.
China is, after Japan, the biggest purchaser of US bonds and currently holds treasury securities worth $194 billion. Mr. Rubin called on the Bush administration to reduce the U.S. fiscal deficit. And concerning the yuan, cautioned the administration to be careful what it wishes for.
Care to explain what those holes are?
Given the CIA's abysmal record at predicting the future, that report pretty much guaranteed that China is doomed.
China is STILL the paper tiger she has always been.
So is your assertion that the economy of China will *not* surpass that of the United States?
Go talk to someone that has been to China recently.
While it's obvious we need to change in order to slow our decline, I'm not convinced the signs point to China as the next world hegemon. Keep your eyes on India, I'm tellin' ya.
LOL! What, pray tell, makes you think that I haven't done EXACTLY that?
Can't speak for Poohbah but I will assert that unequivocally! Not in our lifetime, our children's lifetime, and probably not in our grandchildren's!
Given that they're Enron with nuclear weapons, yes.
My estimate: the Gods of the Copybook Headings will inflict all manner of karmic revenge on China in the coming 15 years.
Not exactly the case or point imho.
You said "want to...purchase"...
I say they don't have a preference.
There is not some natural desire to buy stuff from them, but rather the opposite.
If not for intentioinal distortions in the way trade goes down, much of the investment in china and imports to america will shift to other 3rd regions.
Saying "the CIA says..." is often like having the left wing of the house democrats issue a "report" then saying "the government says..." Its not the same.
There are various 'think tank' groups of cia and former cia people that run the gamut of thought.
the cia is a political organization. Factions there jockey just like everywhere else.
They are big enough to cause trouble so we can't write them off in certain areas. However the world can live without them if need be...
Their weakness is their strength... they have loads of people that dirt poor and who work for nothing...
With China its a race to the bottom yet people call it 'strength'...
The real issue with China is how they distort global trade.
If not for certain policies and actions a lot of the investment $$$ will naturally head elsewhere.
China does not have an absolute advantage...a lot of their 'advantage' is concocted.
Those concoctions are what we need to watch.
I agree with you. They only live in this country, even if they were born and raised here. If individual members of the elite feel any affinity with anyone, it's with fellow members of the elite in foreign nations, not with their supposed "fellow" citizens.
Care to expound on exactly what policies and actions you are talking about?
LOL! That is GOOD! REAL good in fact!
PS: I love Maui.
Watch for the Chinks to threaten to cancel if they don't get what they want somewhere else....bet it will have something to do with oil.
These contracts are negotiated so that backing out's more expensive than taking delivery.
There is not going to be any change to the present trade arrangements - China is one of the major purchasers of the American government's debt.
Regards, Ivan
See Post #8.
There are political goals aimed at 'bringing China into the modern world' for lack of a better term.
"It is in our interests to bring (China)into both the economic and security systems we have developed over the past 50 years" --Robert Zoellick, Feb 15,2005
Its much more political than than it is economic.
There are literally trillions of dollars on the sidelines just sitting in US Banks.
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