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China has the second largest economy in the world is the second largest trader in the world He trillion invested in the Chinese world issues.
Every day we buy things made in China, but they can be there by American or Dutch or Korean companies China buys much of the debt of our government and lately it has been buying small pieces of land and American companies American companies can win or lose depending on their strategies for doing business with China, Chinese students like our schools.
We gain a lot of the economic relationship of American consumers and businesses have chosen to spend 400 billion dollars in 2011 on products manufactured in China China is the third largest buyer of our exports, a source of strength for our business economy US looking for American investors and owners looking for buyers to take advantage of Chinese money Chinese tourists coming from the United States are visiting the United States in greater numbers.
The relationship also has serious problems Clearly not the Chinese government sees trade as a win win, he seems to always win China's more to come from a country where the competition is mostly about politics, Chinese gift enterprises t always follow the law of the United States to rule China economic relationship has many sides to it, and some of them are a bit shabby.
Many speak of Republic of China People's Republic of China People is a bit far from the real world, but the big question is very real world Is the trade and investment with China take jobs Americans The no, most of the time, the Chinese government and Chinese companies are doing things that cost American jobs, we must deal with these things, but the idea that China is stealing millions of our jobs is wrong.
An eye-catching figure is the huge trade deficit, we run with China, nearly 300 billion last year unemployment rises and falls, the value of the currency goes up and down, but the trade deficit just seems to get in the 25 recent years, the trade deficit decreased only twice two years it dropped slightly in 2009 and 2001 were heavily.
These were years of recession, with 2009 being much more painful trade deficit is on the strength of our economy; when he is strong, our trade deficit with China increased Protectionists call 2009 a great year because the trade deficit plunged but nobody does.
We must also remember that we don t follow up of our specifically trade deficit, for example, how we count, assembled in China and sold in the US iPad is our most important trade deficit, although some of the parts for the iPad came originally from the United States.
But suppose you're worried about the trade deficit In theory, the government could do one or two things about it, we could put tariffs on Chinese products, but the prices are just a fancy name for taxes sales on the things Americans want to buy Why raise taxes on Americans a good idea and we could only afford a certain amount of Chinese products in the uS But that would be our government tell ordinary Americans that they are not allowed to buy what they want it to us poorer and less free to spend our own money as we please.
Worse yet, very little of what we receive from China can be called luxury clothing, furniture, televisions, cell phones making it more expensive or harder to find will hurt working Americans the most.
A more popular idea is to subsidize exports subsidies winners and losers, and outright grant money doesn t come from thin air The government takes money from other businesses and the American people why our government decide that everyone should pay to export a cheaper company.
Many Americans are concerned about the value of the currency of China they hear the arguments that China keeps its currency cheap, so its products are cheaper than they would be, and this results in everyone out of business This is complicated, but a picture is worth a thousand words.
In the 1990s, China has made its cheaper currency, which many people argue is bad for us, however, in the 1990s, our unemployment rate decreased from 2005, China slowly increased the value of its currency, making its products more expensive Many people say this is good for us yet, after 2005, the uS unemployment soared.
The explanation is simple The PRC hardly notice our unemployment rate in the 1990s, we had a healthy economy in the 2000s, we did not want t This is the result of our choices, our failures and Blaming China our success is like saying s neighbors that make your house clean or dirty.
Trade is the people of the comparative advantage do what they are best if I'm better fight against fire and you're better at making cars, I can protect you against fire and you can build cars for me in this way, we are both better if China assembles computers better, we take advantage of this because it allows us to buy computers at lower prices China doesn t hurt the uS by trade with us, it hurts the United States by undermining our comparative advantage.
The most important way to China undermines our comparative advantage in blocking US exports to China retains much of its market for public companies Beijing requires state companies dominate the domestic market in coal, telecommunications, railways, etc. These companies may go bankrupt t This means that American products can do well in the Chinese market, they're better or not.
Competition creates prosperity, because it leads to better products at lower prices when China competes on the US market, which helps our economy when China doesn t allow US companies to compete in China, which hurts all everyone except companies belonging to the Chinese government that should go out of business.
Another problem is how China deals with Intellectual Property America is the world leader in innovation, we have more ideas, and we try to protect these ideas with patents, trademarks and Copyright These ideas are an important part of what makes many of our products based here and in the world the iPad uses many of the same computer chips that many other products; what's special about it is the way it's designed and programmed that s intellectual property.
The PRC is the world's greatest thief of such property of Chinese businesses and individuals often ignore patents and other legal guarantees, or even steal outright trade secrets By illegally taking our ideas and technology, China mine our greatest advantage in trade When this happens, the trade becomes much less beneficial is why so many Americans see trade with China as undermining our economy and it is one of the real issues US trade in China that our government should work on.
The Americans are also concerned about Chinese investment in the US The Chinese are buying US government bonds, real estate and corporate America Chinese buying American Can they use their assets as leverage No, they can not t .
The amount of money that the Chinese are investing in our business is tiny compared to the size of our economy The Heritage Foundation follows this kind of Chinese investment around the world in the global investment in China Tracker At the end of 2011, China had 30 billion invested in the US less than one percent of the 15 trillion US economy.
The Chinese are buying lots of US government bonds The China holds about 10 percent of the national debt of the United States, although their share fell Unfortunately, this is because our debt has grown so much that Chinese purchases can t go if we do not like to have China as our national debt, the answer is simple, we run these should not large deficits Then we wouldn t need to sell our debt to China or to someone else.
Some people worry that China may sell our Treasuries and hurt our economy, they can t All sellers need buyers If Beijing sells and there is a strong demand, China will simply be replaced by other buyers If Beijing can not find a buyer, it will reduce the price it s then ask the US government would be able to buy back its own bonds for less money than they are worth would reduce the US debt to China's expense .
Thus, Chinese purchases of federal debt don t hurt us Unfortunately, these gift purchases t help much either in buying our bonds, the People's Republic of China, it is easier for the United States with large budget deficits, which damages the private sector and long-term economic REDUCED growth that is not the fault of China, it is us.
It is your bottom line we need our own house if we do, we face a lot easier the real problems we have with China if we do t we will hurt ourselves far more than the Chinese the American futurist could never doesn t rest with China where it rests always with us.
U, Chinese government bonds.
Утрехт, Нидерланды