Ideas on U.S. Tariffs and Trade with China

When discussing the trade imbalance between the U.S. and China, it is important to realize that the amount of exports to China of U.S. products is relatively small. It may look good on paper, but my personal observation based on several trips to China is that most of the imported goods come from countries other than the U.S. In newly constructed high-rise condominiums in Nanjing and Shanghai, the products used in interior decoration are primary from Germany, Spain, or other European countries. In a department store, I purchased a pair of eyeglasses, and the frame and lenses were made in Europe and Japan, not the U.S. The elevators in hotels in the larger cities are made in Germany and France, not the U.S. In the smaller cities, and in interior China, elevators are domestically-produced in Wen Zhou. Most of the imported cars in China are from Germany or Japan, although there are a small number of U.S. cars. Imported cars cost more than in the U.S. - $42,000 for a Volkswagen in 2001. This price has since dropped to around $27,000 in October 2004. All of these types products are manufactured in the U.S. also, the European and Japanese companies should not have this big of an advantage over the U.S. in China. Presumably Chinese economic policy is restricting U.S. imports. The U.S. government should work with the Chinese government for a more open economic policy that is more favorable for U.S. companies doing business in China. President Bush is an outspoken advocate of free trade, whose goal is to reduce tariffs and protectionism on all sides. During the Bush administration, China’s economy has boomed because of their open access to U.S. markets. It is unknown what Hillary Clinton’s policy toward China might be; she could very well favor increases in tariffs that would hurt both the Chinese and U.S. economies. From the consensus of the CPU-NC group, the people who come from mainland China seem to like Hillary, as they believe that democrats usually are leaning toward ‘friendship’ or camaraderie togetherness with China. They should be careful, as her policies on major issues are not well known.