Sometimes the US – China relationship seems more like a Monet than a Rembrandt. The impression (no pun intended) that is most commonly portrayed is that China is stealing US jobs. However, the reality (pun intended) may not be so clear cut. Take for instance the following quote from the Wall Street Journal:
“Few politicians talk about it, but 406 out of 435 Congressional districts have seen triple-digit export growth to China from 2000-2007.”
That is pretty substantial growth in all but 29 of the Congressional districts. Some speculate that over the next few years that may increase as a result of the recent and tragic disasters in the Sichuan province.
“U.S. exports to China are growing five times faster than any other export market. This is less a function of the falling dollar and more of rising Chinese demand for U.S. products.”
Why the interest in the US? Doesn’t China have the capability to manufacture everything on its own?
“Put simply, they need what we make – from chemicals and components to turbines and telecommunications, from drugs and medical devices to sewage and sanitation equipment. If a product requires modern technology and precise engineering, chances are, China needs it.”
I guess that has to make the US feel good. Everyone likes to feel needed and US manufacturing is definitely needed. So don’t believe everything negative you hear about US manufacturing and the US economy.
“If the International Monetary Fund is right and the U.S. economy is slipping into a recession that will ripple out into the global economy, then that ripple will stop at China’s shore. China’s demand will help absorb the shock of our solvency crisis.”
So the reality is that we may have a friend in China.