trade with china is politically tainted; in other news, water is wet

[chronovore]

China: U.S. trade ties are 'politicized' - CNN.com:

"China-U.S. relations have been a political football in contention between the two parties," a commentary in the paper said. It cited "rising protectionist sentiment in Congress" and proposals to impose tough tariffs on Chinese goods as a way of forcing China to make its yuan -- and its exports -- more expensive.

Comments

[nattotastic.livejournal.com]

The protectionism is to kinda be expected. Historically, Democrats tend to be more protectionist than Republicans. However, although Congress may be more fired up about China than they need to be, they do see a problem with valuation of the Yuan and the resulting trade imbalance. On that hand, it's nice that somebody is just doing *something* about it. Lest the US find itself getting punk'd trade-wise like it did against Japan in the '80s.

I read an article in last week's Economist warning against trade protectionism with China. It's to kind of be expected-- the Economist's view is always pro-global trade. However, their reasoning was that if the Yuan was re-valued correctly, it could exacerbate their wealth disparity and make them unstable as well as shut-out American imports from being sold because suddenly Chinese consumers won't be able to afford them.

What to do? Whaaaaaat to do?

Certainly don't use the toothpaste: http://www.kansascity.com/438/story/120815.html

[chronovore.livejournal.com]

Yes. I seem to recall that when the yen/dollar balance was corrected, it simply put the Japanese on a wild buying spree within the USA, which would be even more strange for China to do, as a "communist" country that supposedly has opposed sociological and market structure.

[nattotastic.livejournal.com]

I wouldn't be suprised of it though. You can safely take any communist dogma with a grain of salt. There hasn't been a true communist since Marx.

[chronovore.livejournal.com]

Groucho or Harpo?

[nattotastic.livejournal.com]

Zeppo!