Don't Worry, China Buys Stuff From The US, Too
from the back-and-forth-trade dept
There’s no doubt that one of the biggest threats to China’s seemingly boundless economic growth is the prospect of protectionism in the US. Politicians in the US have a number of reasons for wanting to limit trade with China, including China’s expanding reserve of US currency and the perceived “threat” of cheap foreign labor and goods. However, while politicians like to pander to worried voters (particularly around election time), many know that any protectionist measures would hurt the US economy equally, so they try to walk a fine line. The Chinese government is, of course, cognizant of all these political issues, so it’ll do anything it can to present itself as friendly economic partner, as opposed to an adversary. Along these lines, a delegation of Chinese business leaders has announced that the country will buy over $4 billion worth of technology goods from 27 US companies, including Microsoft, Oracle and Cisco. At a ceremony, the the delegation was joined by California’s lieutenant governor to trumpet the deals as an important step in the relationship between the the US and China. Ultimately, though, this is all just a political show. $4 billion is a drop in the bucket compared to the US’ annual trade deficit with China. Furthermore, Chinese industrial firms have already been rapidly upping their investments in IT so as to better compete on the global stage, so it’s likely that these deals would’ve happened anyway, even without the desire to address political concerns in the US.