[lbo-talk] Does Trade With China Matter?

Christian Gregory christian11 at mindspring.com
Tue Mar 23 17:33:17 PST 2004



> The end goal is not to pull all investment out of China-- it's to force
> China on threat of losing its ability to export to the US to agree to
> respect some degree of the right to organize. The leverage is that the
rich
> elite of China doesn't want to lose its money flow, so that pressure could
> succeed and help the workers there.

As I understand it, job losses in the US mostly due to technical change, and not imports or moving production overseas alone. Moreover, the trade deficit with China is (1) probably more a subsidy to than a drag on US standards of living, since (2) it derives in large part from the Chinese central bank's pegging the yuan to the falling dollar, and reinvesting the surpluses in US-dollar assets. Allowing Chinese labor to organize is a good in itself. But it will not bring jobs back to the US or itself make the working class better off.

Christian



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