Since I came to the US I am fascinated by one thing. Whatever store I go to, I see products with the "Made in China" label. And this is not a stray occurence. In stores like WalMart which caters to the middle class, almost all the products sold, are from China. I saw some clothes with the "Made in Bangladesh" tag too, never a "Made in USA"! But ofcourse, sodas are the obvious exception.
Amused, I started a game to myself, to find an article which has the words, "Made in USA". I searched and searched. Finally I found Zippo lighters carrying that etching.
USA, it seems to me, is a large consumer economy than a manufacturing one. In general, all products for the high end market come from Europe and for the rest down below the affluency line, it's the Chinks! It looks as if China has bought the manufacturing rights to all sorts of consumer durables!!
No doubt, the Chinks are leveraging their population as an asset.It is a controlled labour market as well. Important of all, China's exchange rate is artificially pegged down to the dollar, making it's exports to the US dead cheap.
I made an hypothesis. Let any US president restrict the imports from China.
Effects: 1.He will see a raise in prices.
2.It will result in public unhappiness and complaint over the prices.
3.Ratings down for the incumbent in the endless opinion polls they conduct.
That is why, No US president offends China. US will preach the whole world about signing NPT. They'll demand that all markets should be open to them. But when it comes to China, it is at the decision and timing if its own, does it relent. All the South East Asian tigers got plundered because of having their currency at free float. China and India as well, escaped then because of their relatively insulated economies.
US may be known as the super power but I wonder what will happen if China lowers the boom either through its currency rate or making its exports a bit costlier!! It'll hurt US badly. So who's the actual super power?
To be a big daddy, a country has to do two things.
One, create market dependencies. you control a nation's market, you control the nation!
Second, Go Nuke! It's the Insurance!!