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China benefits, but so does America. American consumers gets low-cost goods which keep US inflation down in America's economy and Americans' standard of living high, and American shareholders (including probably yourself) ultimately get richer.

How will Americans' standard of living remain high when American companies do not hire Americans? What is going to happen when a lot of Americans can not find a job? I do not blame Corporations for going to China, India, North Korea to get workers that work for $200 a month. I am sure there will be some Americans that will benefit greatly from this cheap source of labor but there will be many average working class Americans that will be out of work. I hope you are correct and I am wrong for the sake of the American middle class.

Despite Japan, S. Korea, Taiwan, Singapore, etc. producing low-priced goods for Americans over the past several decades, America's GDP, per-capita GDP, size of workforce, and standard of living are the biggest and best in the world. Since 1964, when America's GDP was only $641 bil., it has risen to over $10 bil. today. Likewise, America's per-capita GDP rose more than 10-fold, and America's got a huge 130 mil. workforce. Employment increased over the past several decades while Japanese and Korean made stuff for Americans and did not decrease. If any American really wants to work 12-hour days making Nike shoes in an un-air-conditioned room, they are welcome to do it. But most Americans prefer white-collar jobs to blue-collar or manual-labor jobs these days. Even in America itself, it's the poor Mexicans who do the jobs that middle-class Americans just don't want to do. Japan, Korea, etc.'s wages all rose gradually over the past several decades, so now China naturally and for the next several decades will simply take their place so that American consumers can continue to maintain their standard of living by buying low-cost goods.

Every dollar an American saves by shopping at Wal-Mart is a dollar they can put to other uses, whether it's just buying more stuff or saving for a car or house or whatever. China's producing low-cost goods is the biggest "tax cut" imaginable for Americans. In this way, China helps Americans maintain their standard of living. No US politicians wants to change this situation either through a trade war because it would only hurt America's economy through higher prices/inflation and hurt Americans' purchasing power and standard of living. The US-China relationship is mutually beneficial to both. As US-China continue to develop economic ties, there's less motivation to have any conflict either. Even during the EP-3 incident, Pres. Bush did not even consider a trade war as an option. China makes all sorts of products that directly go into all sorts of US products, whether it's computers, car windshield, or whatever. Wal-Mart is also the US's biggest employer now.

One day, many US corporations will actually get the bulk of their revenues from China. This is even more incentive not to have a conflict (they don't want to destroy their own biggest market). This doesn't mean that US firms will abandon the US market. They will remain wherever there is money to be made. But China will just happen to be a bigger market for PC's, cell phones, cars, whatever, and capitalists will naturally gravitate towards it. Intel already gets 70% of its revenues from outside the US and China is its fastest-growing market. Both Intel and Microsoft predict that China will surpass Japan as the 2nd-biggest market for PC's sometime in the remainder of this year. The US PC market is saturated, so the US computer industry has no choice but to try to expand into China, especially when China's computer market is the only one in the world still growing by 20-30% a year.