China : Bilateral Trade with US Highly Profitable
Source: fiber2fashion.com Date: 2006-11-16
Recently experts claimed that manufacturing industry is not as strong as the Americans imagine, the challenge China posed to the US is quite weak.
In fact, China only has the largest final assembly plant in the world, with little added value.
In order to narrow the trade gap between the two sides, China has increased purchases from the US in recent years. Clearly, the US should not arbitrarily making wild accusations against China, but should seek for some reasons from its own part.
US trade deficit with China is growing. In 2005, China’s export to the US stood at US $162.9 billion, and import from the US registered $48.73 billion, creating a trade surplus of $114.17 billion.
In this regard, the US government issued a strong protest, saying it was China’s ‘unfair competition’ that made American manufacturing tending towards a doomed destination and China was ‘stealing American jobs.’
This voice of the US government is very common in American labor groups, but it is a conjecture based on no basis.
In a decade, China always has trade surplus, but not big in volume, it only represents some structural problems.
The US remains the world’s largest manufacturing country, and China’s current strength is still unable to shake its dominant position.
As to the saying of China’s manufacturing industry ‘stealing American jobs’, the original intention of the US government is to progressively take control of China’s economic sovereignty.
UStrade deficit with China is obvious, but the gap between the two sides is not as great as the US government exaggerated.
The consultation agent Oxford Economics pointed out that China’s total trade deficit with the US in the proportion remained around one fifth, when removed the enormous differences between the two sides since the data being collected in 1995.
80-year-old former US Federal Reserve Board Chairman Alan Greenspan once said, “US unemployment problem could not be attributed to China. Comparing with the scale of changes in the US workplace, US policy of trade with China has minimal impact on US employment.”
Then it was pointed out that the US would only lose 500000 job opportunities from 2000 to 2010. The number is equivalent to only a weekly layoff.
To a greater extent, the saying of ‘Snatch employment opportunities’ was a statistics game being played by the US.
