An almost mistaken notion that has floated in many economic circles in the United States is the assertion that US economic survival hinges on China’s success. True, - except that there is another side to that coin. China’s and the Asia Pacific region’s economic success is equally stuck to the hip of the US economy. The moral of the story, - both countries will be well served to - not only acknowledge - but embrace this vital interdependency rather than going to war over currency manipulations and trade tactics to “have their cake, and eat it too.” In the end, no one wins, and both trading partners are too busy fighting over who will flood global markets with short-term economic gains.
If I was a fly on the wall at the Asia-Pacific Economic Cooperation (APEC) summit this past weekend, that is the underlying storyline I will be dying to hear. Through no fault of theirs, the United States general public equates China and Asian economies as the parasite to domestic success. Outsourcing and offshoring of manufacturing jobs have taken their toll, especially in cities and starts that previously boasted of assembly lines and manufacturing jobs. But no one took the time to explain the dynamic of the global markets and the role of technology in modern society.
The times changed, - globalization opened markets and gave access to cheaper labor, efficient business models and huge potential profits. Every country has had to rethink its value proposition and rethink its international service offerings. As you would expect in a world where trade ad international business is gradually turning into a mutually exclusive battle ground, - there will be winners and losers.
It helps to let both sides understand that just as the United States presents a ready-made market for most products and services, Asia Pacific brings the world's second-largest economy to the table. Economic theory therefore suggests that both entities stand to gain, as long as both are not going to war over the same market share. Welcome to the future; - the name of this game will be innovation, - end of story.
If there is any hope for win-win economic gains, it will start with cooperation, sustained growth and long-term relationships based on mutual interests, rather that smokescreens and protectionist barriers. For the US, APEC is the friendship that is turning out to be vital to its growth – and job creation. In his own remarks, President Obama sees any connection with Asia as a chance to “increase trade, spur innovation, promote ‘green growth’ and ease barriers to travel and interactions.” I admit my naivete and economic delusions, but I have a feeling the sentiment is no t too different from the other side.
The operative world is fairness. As long as there is mutual benefit and all countries get their fair share in export revenue, most economic onlookers will nudge the US ease the pressure on their Asian counterparts especially and allow free market forces to lead the way.
But [and there is a big “but”] for that to work, the Chinese especially, will have to hold their end of the bargain with currency devaluation and protection for intellectual property rights.
Either way, this is a classic case of “friends with benefits”, - there will always be secrets and suspicion.
Just a thought.
18 comments:
There BO goes again, making more efforts to solve some of Americas problems.
For all the Obanma haters, all it will take is more exposure to the GOP candidates, more incoherent GOP debates, for the nation to realize what a great thing we have in pres. Obama. China is not the problem and the sooner the country realizes it, the better
The U.S needs to stop buying junk from China.
sooner or later it will be payback time. china sell inferior products to anyone that will buy it. They have stolen our patents and reverse engineering the products, they artificially keep their currency low in order to get an unfair advantage.
you hit the nail squarely on the head.
with all due respect you are very wrong. If you move a million minimum wage manufacturing jobs overseas, it has the effect of removing $750 billion from the US economy. no amount of globalization can offset the damage done to a domestic economy. Every dollar spent by a minimum wage worker has an multiplied effect to our economy. Saying it doesn't matter that these jobs are moved to China and Asia is overlooking some basic facts that Chinese do not reciprocate in any way.
China is taking everything else. . friends with NO benefit
you people are missing the whole point. The problem is China and India as well have turned some middle income jobs into low paying jobs. apec is all talk and no real action so China is always sitting back laughing at the rest of the world
Obama is aiming in the right direction, let everyone but stuff stamped made in the USA, then we can call this a fair trade
Hello America, no one has to buy your products. If you like,dont trade, and see if the china and Asian economies wont still succeed. wake up
Obama called Americans lazy? WTF
this summit was about international trade and policy overview, not domestic issues.
If Obama wants other countries to buy products that say "Made in America", other people hav to be willing to buy it. Inferior goods cant be sold on any market, regardless of trade agreement
It WAS Bush's fault for getting us into this mess.
It IS Congress's fault for doing absolutely nothing because all they want to do is beat Obama.
It IS China's fault for engaging in illegal underhanded currency devaluation tactics that give them an unfair advantage in global markets.
Tariffs would work with only the negative effects of price increases.
Are there still things entirely made in America?
Obama needs to understand that first Americans need stable jobs so they can have pride in their work and create a well-made product.
The fact remains that China's fast rise in the economic circles will not be embraced by everyone, even in the Asian region. thats a fact. can you really blame people who have concluded that China and other Asian nations are sucking away jobs with cheaper labor and production costs. Obama should do more than just promises to change this trend. Thank you
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