China or the U.S.

[rapuda]

With practically everything in our economy made in China or grown in China, I've often wondered which one of our countries benefits more from the other.

Here is my question for anybody to comment on. This question is to be answered with the idea that both countries are doing well economically at the time.

If China and the U.S. severed all ties with one another, and neither country bought or sold goods to each other, if no more money exchanged hands between the two countries, who would be hurt more? China or the U.S.?

[BillCarson436]

Hello...

I believe that somewhere down the road... at the rate we continue to
borrow money from China... that China may be in a position to do a great
deal of damage to our economy.

Watch what happens now with mounting " protests " over the Olympics
coming on soon and see how the US postures itself.

China is not Iraq or Iran. They are a greater threat than a bunch of
Arabs who need to hijack Jets to fly into towers. They have nukes...
and a delivery system.

In any case... who would be hurt more? We are not there yet, but soon...
the answer will be us.

IMHO

[rapuda]

Bill C
I found this on-line to support what you were talking about with borrowed money from China.

In recent years, the debt has soared and inflation has stayed low in part because China has been willing to accumulate reserves denominated in U.S. Dollars. Currently, China holds over $1 trillion in dollar denominated assets (of which $330 billion are U.S. Treasury notes). In comparison, $1.4 trillion represents M1 or the "tight money supply" of U.S. Dollars which suggests that the value of the U.S. Dollar could change dramatically should China ever choose to divest itself of a large portion of those reserves.

So many of our companies including small business, buy so much product and stock from China that our country has become intertwined with China. If we told everyone to stop buying Chinese made products, many American companies would go out of business. 20-30 years ago, Chinese made products were the gadget products, or the cheap toys. The junk stuff you find in the $1 stores. Now almost everything you buy is Chinese. Appliances, furniture, electronics, even food now. If the Chinese ever get there act together with an automobile company, and bring it here, Ford, GM, and Chrysler are doomed. The Japanese and Korean automakers are hurting the U.S. auto industry already. Chinese cars will hurt them further.
I think our leaders have put us in a bad situation, and to answer my question, I think we would be hurt more than China.

[eds]

The question really is about competition. A lot of Japanese cars are "Made in the USA" on American soil and these cars are more competitive than US automakers cars made right next door, so to speak.

Is it China who is at fault, people who buy Chinese products, or are US automakers just too ineffective and too inefficient to be competitive? How can American companies be competitive with Chinese ones? That is the real question. How can American companies attract customers away from Chinese-made products? If American automakers were more innovative, they might be more competitive. If American manufacturing companies were more efficient perhaps there would be more of them in the US. I don't think people buy products based upon where they are made. They buy products based upon perceived value. Not actual value, but that which they feel is of value to them at the time of purchase. That includes any special financing, rebates, and other incentives as well.

[RC12L4]

The question really is about competition. A lot of Japanese cars are "Made in the USA" on American soil and these cars are more competitive than US automakers cars made right next door, so to speak.

Is it China who is at fault, people who buy Chinese products, or are US automakers just too ineffective and too inefficient to be competitive? How can American companies be competitive with Chinese ones? That is the real question. How can American companies attract customers away from Chinese-made products? If American automakers were more innovative, they might be more competitive. If American manufacturing companies were more efficient perhaps there would be more of them in the US. I don't think people buy products based upon where they are made. They buy products based upon perceived value. Not actual value, but that which they feel is of value to them at the time of purchase. That includes any special financing, rebates, and other incentives as well.

Toyota for one doesn't have unions, that for one is a good starting point for the cost they can maintain to produce their products.

[collie]

If we chose to end the business arrangement between the US and China, we shouldn't be hurt but unfortunately, they are holding an awful lot of bank notes on our national debt, aren't they? So we have our backs up the wall already, now vulnerable to blackmail. Perhaps why we won't be saying a word re Tibet ...