US internal policies causing trade imbalance with China

Interesting:

from: http://www.nytimes.com/2003/09/16/business/worldbusiness/16yuan.html?pagewanted=2&ei=5062&en=d92e3f0a4ec83c87&partner=GOOGLE&ex=1064376000

But I wonder: what American policies? And how are they different from those other countries? The article doesn’t mention any numbers either; what countries exactly has China a trade deficit with?

Also, the same article seems to suggest that if China was to immediatly cede to US pressure, the China economy would collapse. Is that what the US government wants, so as to undermine potential China dominance in the region while satisfying protectionnist sentiment at home?

The Cancun talks collapsed, on the face of it due to an African walkout, but it seems that the Africans were simply peeved that the US and EU were spending so much time in negotiation with a genuine new contender: The Brazil/China/India team.

I suspect that this was part of those negotiations. There has been some diplomatic brinkmanship lately, with veiled references to Intellectual Property Law should the US and EU not drastically reduce their hypocritical subsidies, tariffs and other anti-trade measures.

China has the expertise and wherewithall to simply build factories making drugs, computer software, music CD’s, JK Rowling books, Coca Cola, almost anything protect by IPL. There is not much the US or EU could do were they to dissolve such an international treaty because it was not in their national interest, as the US has recently done.

The Chinese yuan has been pegged to the USD at 8.3 RMB to 1 USD for over 10 years now and that stability has been good for trade. Suddenly President Bush finds the US economy is not doing so well and he wants other countries to help him out and take part of the hit so he wants China to change the exchange rate in order to favor US exports and make imports from China less desirable. He is asking China to help him out. He is asking the UN to help him out. He is asking anyone who will listen to help him out. Just look at him squirm and beg.

Australia and the USA are negotiating a bilateral “free” trade agreement - probably conclude December 2003. Failure at Cancun will result in the USA entering more such agreements.

Australians are sceptical that the USA will scrap tarrifs and quotas on Australian agricultural products. And scathingly sceptical that Australia will compensated by the USA for dumping subsidised products in third markets.

Too often when USA companies are hit with fair competition, the erstwhile “free” traders squeal to the USA federal government for tarrif or quota protection. They are only “free” trader when it suits them.

Yeah, my thinking too - I’m from Canada and the USA has tried to shaft us a few times already with various tarriff. It’s unbelievable - just a big bully that cries ‘not fair!’ everytime something doesn’t go it’s way.

I’m just worried about how aggressive the USA has been with the rest of the world, basically lashing out after the traumatism of Sept. 11…

And remembering events such as when the spy plane was forced to land in China and the USA public opinion then - scary!