The Multi National corporations based in the United States built China up by investing capital, and transferring manufacturing technology to China, then these Corporations through their lobbyist, got the United States to lower tariffs on these Chinese made goods this is reflected in China's entering of the WTO.
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Then China builds up huge trade surplus with United States gets a glut of dollars and spends them around the world to get the commodities it needs to manufacture all the goods that it now makes for the world.
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China gets major political and economic foothold in the resource rich continent of Africa pushing US and western companies aside, and the US tries to kick China out Africa through Africom and military intervention. Essentially denying places for China to sell it's surplus dollars, Libya being a prime example.
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If the US government didn't empower the Chinese through it's trade policies the US wouldn't be having all these problems in Africa right now.
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The trade game is going to change now though as China has sucked all the easy value out of the US and probably will be raising the price of the goods it produces as it is not as dependent on the US market as it once was.
Thursday, April 28, 2011
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