The USA Trade Deficit with China is about growth for both countries.

There isn't an American today expecting other countries to be the manufacturing countries and the USA, the country of wealth. It is unrealistic, poor policy and offends the USA National Security. ie: military and the example of WWII readiness in the private sector for the USA.


The growth of the sales of GM cars in China is a success story, but, 2.1 million cars sold in a country of 1,338,300,000 people as of 2010 is only a beginning in the potential market in China.


The question in regard to the trade deficit with China and the USA is not about competition so much as what is fair competition allowing both countries to grow while improving the quality of life of the people. The unhealthy relationship in the China-US trade deficit is a self-defeating reality for both countries. If the USA makes China the manufacturing county to the needs of its people, the ability of China to sell their goods decreases with the impoverishment of the American people. 


The USA will never be a country where every American is born with a silver spoon in their mouth. Every child born in the USA is guaranteed a life, an education and the opportunity to work for a comfortable life, all their life. China has yet to reach that dynamic, but, it had not discovered capitalism until a few decades go. The 'belief' surrounding capitalism when China embraced the opportunity for their people was very deceptive as to how everything works to support a global economy. The ability of consumers in The West to purchase foreign products is not a bottomless pit if the trade deficit means removing good paying jobs in substitution for poverty. That is what has occurred over four decades of Republican leadership in the USA federal government. 


When China removes jobs from the USA it also removes that many more people from their consumer base. The same is true for India. It is true for Brazil, Russia or Iraq. When a country willingly takes jobs away from a place they are coveting as a CONSUMER BASE, it is defeating their own market share statistics.

U.S. trade deficit up in 2011; China accounted for three-fourths of rise in non-oil goods trade deficit (click title to entry - thank you)

By Robert E. Scott

February 10, 2012

The U.S. Census Bureau reported today that the U.S. trade deficit in goods and services increased from $500 billion in 2010 to $558 billion in 2011, an increase of $58 billion (11.6 percent). Although the United States had a surplus in services trade, which increased by $33.2 billion (22.8 percent) in 2011, that surplus paled in comparison to the U.S. trade deficit in goods trade, which increased from $645.9 billion to $737.1 billion in 2011 (an increase of $91.2 billion or 14.1 percent)....

When President Obama asks for tariffs or limits on imports to the USA there is a profound reason for that. How is the USA going to be a consumer for any product, domestic or imported, if its people are unable to make a good wage. The focus on trade internationally should not be about high pressure competition to 'take over' a larger and larger slice of the market share. That is a myth CEOs have embraced to achieve their bonuses. It is a failed strategy.

Successful international global market places is about 'fulfilling a healthy SHARE' of the global market place with quality products to support a quality of life for people whom work and comprise the consumer base for that global market place.


This is not that difficult to understand. If the USA makes cars and China purchases them, then the consumers in China are important to the USA. When those consumers are important to the USA because they support our economy in producing cars, the question for President Obama is; "What can we purchase from China that supports the consumers in China that purchase USA cars?" What will keep a good economic balance between China and the USA? It is where the national leadership has to know what they are looking at and how best to balance the trade deficit to benefit their economies while providing a good quality of life to both country's citizens.


The answer is not for USA manufacturers to export jobs to China. What occurs then is not expansion of the MARKET SHARE. It limits the market share that will stagnate and implode companies and national treasuries. The employment of people in any country is a matter of national security as much as a quality of life within those countries.


When President Obama defends the economic interests of the USA through balances in trade, he is not interfering in the free market process, he is defending it.