From counterpunch
The most striking aspect of the US (and European) trade conflict with China is Washington's systematic rejection of the free market and its resort to heavy-handed dependence on state intervention. Equally astonishing, supposedly orthodox free market economists have joined the chorus of protectionist politicos (like Robert Zoellick, Deputy Secretary of State) in questioning China's free trade policy and demanding that China abide by US directives instead of the free play of market forces (Financial Times Oct.7, 2005 p5). Worse still, some experts like Fred Bergsten, US director of the Institute for International Economics, are demanding more concessions from China under threat of a major economic confrontation. (Financial Times August 25, 2005, p 11).Political Myths and Economic Realities
The US yearly trade deficit with China ($186 Billion USD by July 2005) is largely a result of US inefficiencies, not Chinese trade restraints. China has the lowest import barriers of any large developing country. In areas where the US has invested, innovated and is efficient, in agriculture, aeronautics and high tech, the US has a trade surplus. The US trade deficit is largely in the appliances, electronics, clothing, toys, textile and shoe industries where many US corporations have invested in Chinese subsidiaries to export back to the US. Over 50% of Chinese exports to the US are through US multinational corporations. The US trade deficit is in large part between the US state and its own MNC's located in China.
