USA Today reporter David Lynch writes: "After years of inconclusive skirmishing, trade tensions between the United States and China are about to intensify . . . "
USA Today reporter David Lynch writes: "After years of inconclusive skirmishing, trade tensions between the United States and China are about to intensify . . . On Capitol Hill, lawmakers from both [major political] parties have drafted legislation designed to punish China for trade practices they say violate the Asian giant's international commitments and leave American companies at a profound competitive disadvantage. A bilateral trade deficit that yawns wider with every year is fueling the push for action" (June 13, 2007, emphasis added throughout).
Warnings that such congressional action could backfire substantially came from respected bankers. After all, duties imposed on Chinese goods would immediately bring higher prices for the American consumer. A Shanghai newspaper, Jiefang Ribao, summed up the overall effect: "Once a trade war breaks out, it will be devastating for China and the United States."
Even if sensible restraint averts any negative economic repercussions, the problem of how to address America's huge trade imbalance with China remains. The first quarter of 2007 showed a nearly 20 percent increase in the imbalance over the previous year. Juggling finances between large nations and groups of nations in this supercompetitive world constitutes an ongoing worry for all concerned. (Source: USA Today. )
