Martian2
SENIOR MEMBER
- Joined
- Dec 15, 2009
- Messages
- 5,809
- Reaction score
- -37
In the JOC article (see first citation below), the United States occupies a surprisingly low third-spot among China's top import trade partners.
Part of the problem is self-inflicted by the United States. In 2015, the United States suddenly prohibited the sale of Intel Xeon computer chips for Chinese supercomputer projects. This resulted in the loss of one billion dollars in annual American sales to China. Also, it was a pointless technological sanction. Two years later, China replaced Intel Xeon computer chips with the domestically-designed Chinese Matrix-2000 computer chip.
Similar silly US restrictions on American-made CNC machine tools and satellite parts have hampered US exports to China. The US also has restrictions on the export of devices like ring-laser gyroscopes to China. All of these technological sanctions on China had no practical effect. China built its own CNC machine tools, satellite parts, and ring-laser gyroscopes.
Altogether, the US is blocking billions of dollars of annual sales to China. Thus, the US ranks a mere third among China's top ten import countries.
Technically speaking, this problem can be easily fixed. The United States can rise to become China's #1 trade importer by signing the Asia-Pacific Free Trade Area (FTAAP) agreement with China.
"According to estimates from the Peterson Institute of International Economics cited by the WSJ [Wall Street Journal], FTAAP would represent a 'win-win' for the U.S. and China – although China would 'win' far more. PIIE estimates that, by 2025, the FTAAP would help the U.S. gain about $626 billion in exports, while China would gain a whopping $1.6 trillion." (quote from The Diplomat article below)
However, the US government refuses to sign the FTAAP agreement with China because China benefits more in absolute terms (but not on a per-capita basis). This is another silly US government decision. Since China has four times the US population, it is logical that China would benefit more in absolute terms. However, on a per-capita basis, the United States benefits almost twice as much as China.
It is entirely within the power of the United States to create a surge of American imports into China. Remove useless technology restrictions to China, such as Intel Xeon chips for Chinese supercomputers, CNC machine tools, parts for satellites, ring-laser gyroscopes, etc. China is not restricting the importation of US goods into China. It is the US that is blocking the export of American technology products to China.
Additionally, the United States needs to sign the FTAAP free-trade agreement with China. China wants free trade with the United States. It benefits both countries. However, the US refuses to sign a free-trade agreement with China due to the imbalance of ABSOLUTE trade gains. The absolute trade gains will always favor China's larger population and the US is being obstinate. If the US is serious about opening the flood-gate of American goods into China, the FTAAP is the simplest and quickest solution.
----------
Trade deficits with China widen despite higher import demand | JOC (October 2, 2017)
"Still, for exporters, shipping lines and logistics companies trying to cash in on what will eventually be the world’s biggest economy, it’s worth looking at what China imports, and from where. Five of China’s top 10 trading partners are fellow Asian countries."
----------
US Pressures China to Kill Asia-Pacific Free Trade Agreement Talks | The Diplomat (November 2, 2014)
"According to estimates from the Peterson Institute of International Economics cited by the WSJ, FTAAP would represent a 'win-win' for the U.S. and China – although China would 'win' far more. PIIE estimates that, by 2025, the FTAAP would help the U.S. gain about $626 billion in exports, while China would gain a whopping $1.6 trillion."
Part of the problem is self-inflicted by the United States. In 2015, the United States suddenly prohibited the sale of Intel Xeon computer chips for Chinese supercomputer projects. This resulted in the loss of one billion dollars in annual American sales to China. Also, it was a pointless technological sanction. Two years later, China replaced Intel Xeon computer chips with the domestically-designed Chinese Matrix-2000 computer chip.
Similar silly US restrictions on American-made CNC machine tools and satellite parts have hampered US exports to China. The US also has restrictions on the export of devices like ring-laser gyroscopes to China. All of these technological sanctions on China had no practical effect. China built its own CNC machine tools, satellite parts, and ring-laser gyroscopes.
Altogether, the US is blocking billions of dollars of annual sales to China. Thus, the US ranks a mere third among China's top ten import countries.
Technically speaking, this problem can be easily fixed. The United States can rise to become China's #1 trade importer by signing the Asia-Pacific Free Trade Area (FTAAP) agreement with China.
"According to estimates from the Peterson Institute of International Economics cited by the WSJ [Wall Street Journal], FTAAP would represent a 'win-win' for the U.S. and China – although China would 'win' far more. PIIE estimates that, by 2025, the FTAAP would help the U.S. gain about $626 billion in exports, while China would gain a whopping $1.6 trillion." (quote from The Diplomat article below)
However, the US government refuses to sign the FTAAP agreement with China because China benefits more in absolute terms (but not on a per-capita basis). This is another silly US government decision. Since China has four times the US population, it is logical that China would benefit more in absolute terms. However, on a per-capita basis, the United States benefits almost twice as much as China.
It is entirely within the power of the United States to create a surge of American imports into China. Remove useless technology restrictions to China, such as Intel Xeon chips for Chinese supercomputers, CNC machine tools, parts for satellites, ring-laser gyroscopes, etc. China is not restricting the importation of US goods into China. It is the US that is blocking the export of American technology products to China.
Additionally, the United States needs to sign the FTAAP free-trade agreement with China. China wants free trade with the United States. It benefits both countries. However, the US refuses to sign a free-trade agreement with China due to the imbalance of ABSOLUTE trade gains. The absolute trade gains will always favor China's larger population and the US is being obstinate. If the US is serious about opening the flood-gate of American goods into China, the FTAAP is the simplest and quickest solution.
----------
Trade deficits with China widen despite higher import demand | JOC (October 2, 2017)
"Still, for exporters, shipping lines and logistics companies trying to cash in on what will eventually be the world’s biggest economy, it’s worth looking at what China imports, and from where. Five of China’s top 10 trading partners are fellow Asian countries."
----------
US Pressures China to Kill Asia-Pacific Free Trade Agreement Talks | The Diplomat (November 2, 2014)
"According to estimates from the Peterson Institute of International Economics cited by the WSJ, FTAAP would represent a 'win-win' for the U.S. and China – although China would 'win' far more. PIIE estimates that, by 2025, the FTAAP would help the U.S. gain about $626 billion in exports, while China would gain a whopping $1.6 trillion."
Last edited:
