Anyone remember when everyone was afraid the Japanese were going to take over because they could take our ideas and execute them better/cheaper…… how did that work out.
The Chinese have serious issues facing them and our Pacific fleet is not one of them.
Total debt to GDP in China is over 200% (what it was in Japan in the 80s, in the US in 2008….), this debt, largely owed by local governments to banks has been funding infrastructure spending - which represents (hold on to your hat) 45% of Chinese GDP. They are desperate to grow and compete as they have massive demographic realities that require they grow >7% to keep the people from rioting……. Their large markets (US, Europe) are stagnating and they remain at the low end of the value chain, how many Chinese brands to you have in your house? How about Euro or US brands….. Think of the iPhone, assembled in China of components sourced from Korea/Twain…. the most expensive component (processor) built in Tx, most of the value (90+%) ends up in the US…..
China has been the worlds sweatshop, it's trying to move up that value chain but it's slow going…..
OTB
The economic climate, has turned upside down in the US over the last 30 years. Good paying jobs have left, and they are never returning. Never. Companies don't rely Americans exclusively for their revenues..... the world has new markets for them to exploit. China.... India.... Pakistan.... all with emerging economies, emerging middle classes, and disposable income.
The Internet was invented in the the US.... it grew in the US..... and its technology is integrated with other technologies (corporate, Infrastructure, national defense, Medical....) in North America. Not so much in the rest of the world... (in varying degrees pending on where you go). The 60 minutes article (3 years old now) only shows how vulnerable we actually are, because we've build everything we could think of around it..... Our strength, turns out to be a big weakness.
* An unknown foreign government was in the Department of Defense's command center watching everything for more than 2 days undetected while 2 wars were being fought.
* More than a terabyte of information was stolen in 2007
* Malicious code has been found in defense systems that control U.S. nuclear arms....
* Not even sure you could count how much corporate information has been stolen in this century.....
In this new economy, a lot of companies are going to be forced to go to these new markets if they want to survive. Doing business with China is very scary, as they are unscrupulous. You cite Apple as one example.... but how many more examples are there where a company makes arrangements for a product to be produced..... and all of a sudden the Chinese are making there own copies with the original logo? They fake viagara, heart medication, kemo medicines..... anything.
Yet our governments still seek out trade agreements with them. Why? Who is that benefitting?
I would argue it benefits massive corporations..... Walmart, Apple, Monsanto, ADM, McDonalds, Coca Cola..... The U.S. Government works for corporations. They are funded by super-pacs, and make laws accordingly. Cheap labour, and huge new markets are the rewards.
OTB..... it is clear to me that you have a far better education than me. However, I'm smart enough to read the writing on the wall.
Why don't we try embargoing China, the way the U.S. embargo's Cuba?