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Wednesday, May 4, 2011

China biggest importer of U.S. goods (they especially like American "waste and scrap")

The New York Times ran an article last month that should be encouraging to American economists, and to the White House, and to Americans generally. It seems that China is the biggest importer of American made products and the Chinese's thirst for good ole Made in the USA is good for our GDP. According to the article, As China Grows, So Does Its Appetite for American-Made Products the states enjoying the biggest impact of this phenomenon are Texas, California and Washington. They export aircraft and computer components to China. (And the author seems to think that China will surpass the U.S. as the biggest importer in the world. China is now the second biggest and the U.S. is the biggest.)

Feeding billions of people is also taking a toll on China's agriculture sector. Apparently they are not making any more land so they also import huge quantities of food products from America like grain. They also need a lot of our cotton.

But it was what the Chinese import from New York that is fascinating. According to the article, New York exported nearly a billion dollars in "waste and scrap" to China last year. China apparently recycles these products to make paper and other merchandise.

That is why I think Donald Trump is massively uninformed about these trade issues and his plans for dealing with China. It will upset the balance of trade in such a way, that the jury is out who will suffer more: China or the U.S. I mean, I am sure, if they must, the Chinese can import their waste and scrap from someplace else. And where would New York sell a billion dollars worth of the stuff if the Chinese pull the account due to high tariffs on their exports to the U.S.?

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