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Many people point to the incredible trade deficit that the United States has with China. It is true that it is quite unfortunate and most of the reason comes from the reality that China is taking advantage of the United States by not allowing the Yuan Currency to float, or allow it to be adjusted as per its real inflation. Someday many analysts believe China will pay for this economically and it is really an inflationary challenge that they will have to deal with.
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Nevertheless, in the short-term the United States has a huge trade deficits as China is buying very little from the United States compared to the massive numbers of Cargo Ships coming to the US. Rather than buying some of our high-tech manufactured products, some say that all China does is copy what we've created, and then reproduces it in their country without regards to patents or intellectual property laws, (many believe this is changing, I believe it's not changing fast enough to be a relevant argument) then tries to sell it back to us, and all our other global customers.
If those were the only problem it wouldn't be such a big deal, but I'm just getting started. China then buys U.S. Treasury notes, they are basically buying our country in trade for us buying their products, this means China wins twice in the United States loses twice. Some say that it is nice that the middle class consumer in American can buy cheaper products, and whereas that is true, it also means that very little will be manufactured in the US anymore, we hardly make anything anymore; except hamburgers.
Some say we own several large industries; such as airline manufacturing and aviation sector. But if anybody has been looking recently, they will see that China is now making their own airliners, and they have a general aviation industry that is popping up and growing strong. In fact, China is interested in all of the United States major industries and they will take them one by one as long as we allow them to do so.
Next, the issue of Triangle Trade is relevant here.
This is a very important concept and you would think that if we buy something from China and China buys something from another country, that other country might buy something from the United States, but that isn't happening. China is now competing with the US for what it needs to buy such as raw materials and oil.
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