What should the USA do to end the trade deficit with China?

Question

200 billion a year trade deficit.

Answer 1

The USA needs a policy of "fair trade", not free trade.

Trade with communist China only promotes the slave system the communists use. China arrests political opponets, Christians, and those with opposing beliefs.

If china can't behave, and obey the WTO, then USA needs to end trade with them.

Answer 2

All too often, we think that it is China's fault for the trade deficit and there should be something they should be doing. China is a poor country and they are willing to work for less pay. We can't stop China for willing to work for less pay. That's just ridiculous to ask of them. Even if we stop trading with China, another country like Ethiopia, Sudan, Chile or some other poor third world country will take China's place and work for less too.

The problem in the current system is the United States cut taxes and spend money like its going out of style. The Budget Deficits have ballooned out of control. We are in debt up to our eyeballs. Blaming China won't solve our countries debt problems.

There is another reason that economists and politicians don't stop China from selling cheap goods to us. Let's take a scenerio and pretend that last year, Canada and United States made exactly the same amount of money last year, say $1 trillion. However, this year, United States has refused to buy cheap goods from China, while Canada continues. The result is that United States will have higher expenses, thus, lowering its profits. Canada will grow larger economically than the United States. This is the reason why politicians doesn't try to stop China's goods, because it will shrink our economy.

In summary, it isn't realistic for us to stop the world from working for less pay. There will always be poor countries. China is growing and their wages are increasing. We are already seeing signs that this is occuring, so they won't be able to work for less indefinitely. When that happens, China's goods will become expensive. However, the United States will shift its trade deficit to a different country instead, such as Ethiopia. So, we won't actually reduce the deficit, but rather shift the deficit to different countries. The central problem is that the United States keep borrowing money and keep spending money too. Programs like Social Security and Medicare is in danger of bankruptcy. We need to take a good look at how we're spending our own money instead of blaming other countries for our problems.

I keep seeing other people blaming China or India for being poor and its unfair advantage. They need to wake-up to what they are suggesting? Shouldn't we be happy the United States are rich and they are poor? Don't we want it this way? How exactly do you want to stop other countries from being poor?

Answer 3

I think this is a good question and I wonder who would give it a "thumbs down". China, according to Dick DeVos who is running for governor of Michigan, has rules that state that in order to sell goods in China the goods must be made in China. We should enact similar rules and also require a fair valuation for their currency. One day the plants that are being shipped there might come back to haunt us if relations with them were to go bad. They can also hurt us badly if they were to ever sell their bond holdings. Let's hope we can elect people who care.

Answer 4

i don't know why. yet what you assert is genuine. i did not quite start to think of approximately it till Bush borrowed hundred billions of greenbacks from China to grant us six hundred bux to take to Walmart. the place we could desire to consistently purchase some new clothing or toys made in China. Now i think of approximately it all of the time. How is that meant to help OUR financial gadget? additionally, China is taking on our united states without firing a shot. They own a super proportion of our genuine sources. We owe them extensive quantities of money. the government has allowed the commerce imbalance and seems quite happy with it. this could in basic terms have devastating outcomes. we are at as quickly as shifting from a capitalistic financial gadget to based united states status.

Answer 5

Uh, if we try to end the trade deficit now they might want us to repay them all the money Bush has borrowed from them to pay for his catastrofukk war in Iraq.

Answer 6

Simple enforcement of laws that prohibit the importation of goods made by "forced labor" ought to do the trick. It won't happen, unfortunately: Wal-Mart loves really cheap products, no matter how they are made, and they own far too many elected officials to allow such actions.

Answer 7

Nothing to be done.China is about to be faced with labor unions for the first time in their history, that will mean higher prices on what they export.We can't really compete with their wage base and we don't have any thing to export except for movies and food.

Answer 8

allow us to export more...by deregulating the industries....and making a trade agreement with china, maybe send Jimmy carter(we know his agreement withN korea worked well)

Answer 9

Stop outsourcing our jobs and manufacturing plants to China...I'm sure that would be a start.

Answer 10

Impossible to fix. Americans love their happy meal toys too much.