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Old 05-09-2007, 11:48 AM   #1
Cowperson
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Join Date: Oct 2001
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Default China's trade bomb . . .

A good column in the Washington Post looking at how global trade has been impacted by China and what the future may look like.

If nothing else, small factoids like this bring perspective:

It sometimes seems as if almost everything we buy comes from China: DVD players, computers, shoes, toys, socks.

This is, of course, a myth.

In 2006, imports from China totaled $288 billion, about 16 percent of all U.S. imports and equal to only 2 percent of America's $13.2 trillion economic output (gross domestic product).

Does that mean we don't have a trade problem with China? Not exactly.

China is already the world's third-largest trading nation and seems destined to become the largest. On its present course, it threatens to wreck the entire post-World War II trading system. Constructed largely by the United States, that system has flourished because its benefits are widely shared. Since 1950, global trade has expanded by a factor of 25.

By contrast, China's trade is mercantilist: It's designed to benefit China even if it harms its trading partners.

And he goes on to explain his reasoning on the matter.

http://www.washingtonpost.com/wp-dyn...d=opinionsbox1

Cowperson
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