Stephani Scruggs, Contributor, The American DossierÂ
It’s always a bit amusing to read ‘free traders’ derogatory remarks about President Trump’s ‘trade war’ with China – as if China, somehow, has ever practiced anything remotely resembling actual free trade.
Since their 2001 entry into the World Trade Organization, China has consistently and flagrantly violated rule after rule the WTO laid down – with zero consequence – until Trump. Previous administrations, both Democrat and Republican, willfully turned a blind eye to China’s abuses and meanwhile allowed the outright theft of American Intellectual property, trade secrets, manufacturing, jobs and a large portion of our economy.
Prior to reaping, (or should I say raping), the benefits of the US economy; China in the year 2000 had a GDP of only a measly $1.2 billion. At the time, America’s GDP was $10.9 trillion – 8,566 times larger than China’s.
Fast forward 19 years and China has skyrocketed to $13.6 billion GDP and that growth was based almost entirely on schlepping cheap Chinese goods off on the American consumer even as they literally stole our technology, sold it back to us an prices no private company could match, so that they could run our manufacturers out of business, axe American jobs and effectively steal the American economy for their own.
Yet, even despite the foibles of weak kneed politicians, trade representatives that couldn’t negotiate their way out of a wet paper bag, and a nearly decade long recession turned depression; as of 2018 America remains the most powerful economy in the world with a $21.6 trillion gross domestic product – 60% higher than China’s GDP. And while China has managed to whittle our lead down to less than one-fold, the fact remains: America continues to be the largest consumer market in the world. IF China wants to keep selling, we have to be willing to buy.
The fact of the matter is, China must have easy, unfettered access to the American consumer in order to stay afloat; but we have zero obligation to give it to them.
China wants to impose more tarriffs? Let them.
The reality is last year alone, the U.S. spent $466 billion on Chinese goods, while China only bought a pitiful $123 billion from us. For math deprived politicians and talking head TV personalities: we give them more than three times what they give us.
IF China jacks up its tariffs, Americans with brand new Trump delivered good paying jobs will do what any normal consumer will do – buy the more affordable product – except this time, thanks to Trump delivered manufacturing growth, those products will likely be made in the U.S. adding even more manufacturing and even more good paying American jobs.
You see, American’s aren’t so broke anymore that we have to buy cheap Chinese junk. We have all money, we have all the choices, we hold all the cards, and we finally have a President that knows it.
China President Xi Jinping knows it too, but what he isn’t sure of just yet, is whether Donald Trump means what he says or if the hacks in Congress will make POTUS fold. So, China is testing Trump’s mettle, parrying and jabbing, feeding the media fools’ fodder and hoping to bluff their way back into economic domination off the American worker’s back.
Thank God we elected a President with both a backbone and a solid understanding of business, who understands China will fold, because they have no other choice they need us far more than we need them.