A Closer Look at America's Trade with China

Posted by Consumers for World Trade Thu, 02 Aug 2007 18:16:00 GMT

Michael Virga

August 2, 2007 -- China has now become the 4th largest purchaser of our exports. The People's Republic bought $52 Billion worth of American goods in 2006 - a 32% increase over the previous year. U.S. exports to the world's most populous country are rising five-times as fast as our exports to the rest of the world, and there is no reason to expect this trend won't continue. Despite our record-setting sales to China, we are buying more from China than it buys from us. To some elected members of Congress, this is just inherently unfair and they are quick to call for putative import taxes on Chinese goods purchased by American consumers.

The average American family saves when we import goods that are cheaper to buy abroad than produce at home. In fact, hard working families and the neediest of Americans stand to benefit the most from our trade relationship with China since that country has been an enormous source of competitively-priced consumer goods. It is clear that without this trade relationship hardworking families would be forced to pay more for the essentials of life.

Instead of recognizing the importance of our trade relationship with China - both as a growing destination for our exports and the opportunity to offer millions of needy Americans price savings - Congress appears to be moving towards imposing putative measures on China. Some of out elected representatives claim that the Chinese undervalue their currency, the Yuan, to make their imports cheaper in U.S. markets while at the same time making our exports more expensive in Chinese markets. Some of these proposals call for import taxes of up to forty percent on everything Americans buy from China in order to punish the Chinese. Of course, this proposal will most likely inflate the prices that needy Americans pay for the essentials of life while doing almost nothing to promote American exports to China. It is about time the members of Congress consider needy American consumers in their rhetoric about China.

Comments

Leave a response

CWT Blog

A Closer Look at America's Trade with China

Comments