The first 10 years of Chinese membership in WTO and of trade with the US at almost no import/export tarrifs:
- Chinese rural poverty rate declined from 10 to 3%
- US families could spend an extra $600 a year on cheaper goods
- US factory jobs declined by 25% US manufacturing wages have stagnated
- US trade defficit with China $273 billion
On the other hand, most of the major manufacturing operations in China serves US companies and buyers. A good portion of the profit made in China comes back to America, while the hard currency earned by Chinese companies and individual ends up invested by the Chinese government in (among other things) US treasury bonds. There are also the worrying aspects of this Chin-American economy. A good portion of American intellectual property is being stolen and huge profits are being made by Chinese business off pirated content. In 2008 China decided that certain industries are “lifeline” sectors, which need to be dominated by the government and protected from competition by preferential treatment. For example, for political and economic reasons, the Chinese government would not allow any other Internet social networking o
r search companies than the ones it controls and favors to serve the Chinese public. In effect, China is drifting away from the ideal of a world without borders, in which governments do not choose favorites.
Via www.msnbc.msn.com
