Chinese and American Fragile Trade and Economic Ties

[Norwegian733]

What I cant understand is the naive US attitude on China. Why in the hell do the US accept that chinese companies can duplicate US products and even export them to the US?? Why do they accept that China is in fact unwilling to buy american products? China must have a policy on this to weaken the US. Because the buy a lot from the EU (esp. Germany) and the EU is therefor more positive to China and the US is losing support from them. Its a split and rule situation.

[IntelArt]

if America stops buying from China, China will go on a civil war...

[LJDeMeo]

Remember....the Trillion and Half Dollars owed is FIAT Money. What does this mean. It can be printed up tomorrow morning, sent by DHL to China with a middle finger salute stamped on the package....The dollar will depreciate greatly on the foreign exchange market, making U.S. Goods more desirable. The export market will hire more workers partially offsetting the workers laid off by the Wal-Marts, Targets of the USA...

[ShannCole888]

This could likely lead to a military conflict, as oil will play a part...

[PhotonDrive]

Old British Empire nonsense trying to surround China like it did Russia long ago.

[auriculi]

No Problem.... if everyone takes the stance of those who start the war should go and fight it!! Could be really funny seeing the us and chinas politicians facing off and slugging it out. I'd put my money on the Chinese personally. Just remember its a simple solution... "You started it you sort it out".

[ShannCole888]

Yeah China is suppose to have 1.3 trillion dollars worth in Freddie Mac,and Freddie Mae U.S. treasury bonds...and has been talking of droping them, which is projected to cause the collapse of the U.S. dollar...As well as Russia,and Iran agreeded to too..

[DontBuyChinese]

@ShannCole888

China would never dump US dollars. It would cause their own currency to rise, causing exports to drop because they become more expensive, resulting in layoffs, plant closings, maybe even civil unrest and political upheaval.

The CCP is walking a very think rope and if they make one wrong step they will be in deep shit.

[teslaglobal]

because America owe china billions in something that have not got.

[dopeskies]

You Mean over 1 and a half trillion...

[PhotonDrive]

All the printed US money - pawned off as CDO's was a smoke-screen for getting free oil, plus cutting labor costs of production from 35% to 2% - via Chinese labor. All attempts at reform in the US, all warnings from abroad have failed. Waste compounds itself endlessly. Military has to be cut 80% to begin to gain breathing room - but it isn't. Plant & transmissions must be renewed to save 50% energy waste - but they aren't. Centralized capitalism goes down, like centralized socialism before.

[GlobalPrison]

and if China stops buying treasury bonds then U.S lose that income... which would force taxes up, more borrowing (debt) from other sources and President Obama would have mutiny in Congress and the Senate...worse than it already is.. See my video in Industry and Economics on '2011 Fiscal Budget Proposals -House Ways and Means Committee Questioning Tim Geithner'

Nearly every committee member jumps down Geithner 's throat...

[Norwegian733]

@GlobalPrison True, but there are always two sides. If China stops buying US treasury it will lose its by far largest and most important marked. And other exporters like the EU and Japan will have to fill in as much as possible so USD wont fall to much. China will also lose a lot of their forreign reserves as the USD will weaken. The interest rates in the US will rise. However, the US will set themselfes up to be a larger exporter and the dynamic could help the US to even have net export.