China lends to the united states so that the us can continue to have money to import Chinese goods. If the us only has 10 dollars, and exports 10 dollars to China to buy Chinese goods. Then the us cant import Chinese goods a second year because those 10 dollars are sitting in China. So China lends those 10 dollars back to the united states so that the us can purchase another 10 dollars worth of goods.
The united states could commit to some other monetary easing device like quantitative easing or fractional reserve lending so that it can export another 10 dollars to China without depending on China to lend that money back. And the us has done that. Which is why Chinese exports to the us are not stagnant but increase every single year.
It really does not make much sense from the Chinese standpoint to be exporting to the united states at all. But there are real winners in the Chinese economy from this trading relationship. Major exporting industries who's only income is derived from exports. The majority of Chinese will not benefit from the trade. But certain industry leaders who pull a lot of strings in Beijing do stand to gain.
It's a waste of time. The relationship is not symbiotic. The relationship is not about technology. Otherwise, China would be posting a trade deficit importing technology. The relationship is about finance and becoming the global banker. China could be subsidizing anyone. Greece, Portugal, Spain, anyone who is looking for a lender.
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