I am giving him a hard time, but I am definately glad that GW has taken this up.
This currency thing is a long term issue. I hope he gets that. Balance in Asia is a key long term goal. Its not only good for us but for China too.
China doesn't want a defunct economy. They sure as hell don't want one that is reliant on us for half of their growth. Eventually the factories will stop moving to China.
FDI isn't going to save them in the long term. It works for now though so thats what they do. They have the economic bull by the tail, but definately not by the horns.
China needs an economy that works from the inside out. Not from the outside in.
That is not some anti-China talk either.
The problem is China is going to have to face its own fears to accomplish what needs to be accomplished.
Essentially we have been pandering to China's fears, but not helping overcome them.
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They have one and are building an even better one. Each time we move and industry there it is assimilated into their system and continues to function independently within that system. We have moved China foreward 60 years in the last 25. The only reason they want trade is to bring in more to assimilated into their system. In five to 10 years they will be completely economically independent. They are producing somewhere in the order of over 60,000 engineers and scientists per year to support their own independent technology and economy.