Posted on 03/23/2006 9:29:32 AM PST by Willie Green
For education and discussion only. Not for commercial use.
China probably will surpass the U.S. as the world's largest exporter of manufactured goods this year, propelled by its embrace of advanced technology, a study by a U.S. industry group says.
"The rapid growth of Chinese manufactured exports, with an increasingly high-tech orientation, presents a major challenge to U.S. competitiveness,'' said the report by Ernest Preeg, a senior fellow at the Manufacturers Alliance in Arlington, Virginia, an association that represents companies such as Caterpillar Inc. and Motorola Inc.
In 2001 China exported half the amount of factory goods the U.S. did. Since then, Chinese exports of those goods -- including auto parts, toys and semiconductors -- have grown by more than 25 percent a year to $713 billion in 2005. Assuming an "unlikely'' slowing in export growth to 20 percent, China still would pass the U.S. in those exports this year, the 15-page report said.
China is increasingly competing with the U.S. in such areas as information technology, aerospace, biotechnology and electronics. The U.S., with a trade surplus of $29.7 billion in those products in 1998, ran a $44.4 billion deficit in 2005.
Preeg said China's "currency manipulation'' has led to its increased export competitiveness and estimated that the yuan is as much as 50 percent undervalued.
The U.S. and other trading partners hurt by China's currency policy should demand it revalue the yuan "promptly and substantially,'' the report said.
Preeg said the yuan's value should rise 10 percent to 20 percent against the dollar this year. The yuan has strengthened 1 percent against the dollar since the 2.1 percent revaluation on July 21, when China said it would allow a daily 0.3 percent move in either direction of a rate set by the central bank.
U.S. officials are warning China that its currency policies, limits on imports and export subsidies risk sparking a backlash in the U.S. against the trade relationship.
Well, China is the world's largest country, so this should come as no suprise.
It's only communist ideology and control which prevent China from taking off like a rocket.
(Get rid of that, and then you'll REALLY see a galloping economy!)
Russia is the world's largest country
Russia's biggest by territory but not by population.
I remember in the late 1050s hearing that by 1970 the Soviet Union would surpass us in almost everything. Yep, that happened...
I just got back from the mainland last night they have about peaked is the discussion there - after all do you need another walmart in your town
"Russia is the world's largest country"
You are correct of course as far as geography is concerned. With respect to an educated workforce, I believe China is hands down the largest country. I am not sure this is cause for concern yet. I think as long as China is in bed with Iran and other US enemies, it could be. Thanks to the Stainer in Chief, they have the satellite technology to present a threat militarily as well as economically. I hear that they project in fifty years, half the population of China will be Christian. I do not know what effect that will have.
" We did not buy $242 billion from them in a years time and sent our industrial production to their country either."
Completely insane. We have been sold to the lowest bid. International companies have taken control of our elected leaders and paid them to do their dirty work.
Thank you for the article URL. If this isn't a reason to keep the DEMOCRATS out of the White House, I don't know what is.
Wait, wasn't there an article yesterday saying that China's economic expansion will be running into some major roadblocks and putting their success at risk?
I wish the pundits would make up their minds.
"I remember in the late 1050s hearing that by 1970 the Soviet Union would surpass us in almost everything. Yep, that happened..."
This time is for real.
WAKE UP AMERICA!
But neither view is accurate. China is integrating itself into the world economy. And it is a big country, so yes, as it integrates more into the world economy, the value of thier imports and exports will go up and it's numbers will seem big.
They're trying to integrate a work force from a country with 4 times the US population. And 2/3 of China's workforce is still in the country side toiling the fields. So they have a long ways to go for their workforce to be fully integrated.
Put it another way, China's $713 billion in exports amount to $500-$600 per person. If you look at countries like Canada, Taiwan, etc., the per capita exports are easily in the $5,000-$10,000 range on a per capita basis.
Don't forget the US and other developed nations, export services. As China exports manufactured durable good, the developed nations export valuable services like architectural and engineering consultations for China's infrastructure. Ever hear of CH2M Hill? They do a tremendous amount of work in China in which they hire experieced American engineers to help China with their infrastructure. These guys get paid six figures while in China while the average Chinese are paid four figures working in foreign factories. But that is where the comparative advantage lies. America buys intensive labor and China buys technical services.
With that, one could make the argument that those from developed nations are the ones that make out like bandits.
Nope. Certainly not commensurate with the trade deficit situation. The predatory trade practice is no longer going to be tolerated.
The Chi-Comms have pushed this string to the end.
You are confusing the narrow few who are positioned to profit as against the vast number of U.S. citizens. Hence, I've got $224 billion reasons annually...which is a NET NUMBER of all goods AND services....proving that you're wrong.
And don't even try and sell the idea to the 3.5 million U.S. workers who had their jobs terminate due to outsourcing....that they are making out like bandits.
Well, if you mean that China will be pushed into letting the Yuan to float, I will agree with you. They have already pegged their currency to a basket of currencies instead of the dollar. So, they do give into outside pressures. China will be pushed, prodded, and pressured into a fully convertable currency. But if you mean that trade will end between the US and China. No, I disagree. It'll expand even further.
Russia's biggest by territory but not by population.
Yes, but the Russians are significantly taller than the Chinese.
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