[maui_hawaii]

It goes back to China's REFUSAL to purchase our exports. They still have "most favored nation trading status". We buy "their stuff"; but they don't buy ours.

It all returns to the structure of the Chinese economy.

"It's my understanding that about 60 percent of China's exports are coming from foreign invested companies rather than Chinese companies."
(Page 28-congressional hearing...)

We are buying a lot of our own exports from China.

[Alia]

I concur with your points in post. These aren't Chinese "owned" companies. But China is getting a glimpse into how low unemployment boosts their economy. And, of course, learning how the modern world "manufactures". US firms are losing some money on these deals; but picking it up under filing credits, balancing the ledgers of these companies.

[Orange1998]

If there were to be a financial crisis in China--let me rephrase that--when there is a financial crisis in China, the value of its renminbi debt as expressed in foreign currency will undoubtedly decline.

Interesting and well noted.