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Gordon Chang, author of “Coming Collapse of China,” and Donald Gross, former State Department Official, debate the pros and cons of the U.S. getti...
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-- debt base this on China with offers short.
And former State Department official Donald growth Gordon -- let's start with the overall fan -- you on the radio show with -- that's I think -- all the time.
Can we not afford to get tough with China because they -- about one and a half trillion dollars of our various assets and treasuries.
Well China buys our debt because they have to because they have an economy that is geared to selling things to the US.
Last year.
A heightened China's merchandise trade surplus against the United States was a 190.
Point 5% of its overall surplus.
This gives the United States incredible leverage with China because China is running these big deficits with the rest of the world in order run a surplus with us so we don't have to worry about China.
That's it Donald growth yet -- the -- trying to tell the Chinese what to do the more recalcitrant they get.
Well.
You know I think the important thing with China and and the question of getting tough with China is to look at the issue in the overall context of the US China economic relationship.
Right now where our primary focuses on strengthening be fragile.
US economic recovery.
The American growth rate is about 2% the Chinese.
Growth rates 98% in fact is that US trade with China is highly beneficial China's helping us that.
Pull out of the global economic crisis that as that's probably know China is America's third largest export market it's the largest.
-- growth market in the world for US.
Goods and services so.
We have to address the serious trade issues we have with China.
But do it in a way that doesn't disrupt the overall highly beneficial economic relationship that we now.
Gordon Chang I just how bad a violator is try to go were mad -- -- for protectionist policies but even George W.
Bush.
Put limits on imports of Chinese made polyester pants happily format about a weak currency but the US dollar currency we allow that -- to get week.
Yeah well China has run the largest program of manufacturing subsidies in the world and many of those are not compliant -- this World Trade Organization obligations.
Also it's been encouraging these intellectual property piracy matters.
The international trade commission in 2009 said that China's IP violations.
Really cost US businesses 48 billion dollars and that if China -- -- enforce its electoral property laws.
American businesses would have employed 923000.
More Americans in the United States.
You know China has been the subject of all these WTO complaints and it's lost all of them so -- clearly we have a big issue with them.
Okay we'll get a -- -- -- that combative and haven't heard much yet from either side thank you very much for being -- Gordon Chang.
