ARLINGTON, Va. -- According to Manufacturers Alliance/MAPI, the rapid rise of China to surpass the United States as the leading exporter of manufactured goods has important consequences for U.S. commerical and geopolitical interests.
Ernest Preeg, Senior Fellow in Trade and Productivity says that in geopolitical terms, the rise of China and the decline of the U.S. trade position increases Chinese political influence in the region, which is a growing concern among Asian nations and U.S. foreign policy interests.
From 2000 to 2008, U.S. exports to principal Asian trading partners (Japan, South Korea, Taiwan, Australia, and India) and five ASEAN members (Indonesia, Malaysia, the Philippines, Thailand, and Vietnam) grew 19 percent. During the same time, Chinese exports to the same countries rose 399 percent.
In 2000, U.S. exports were 88 percent higher than Chinese exports. In 2008, Chinese exports more than doubled U.S. exports.
“The U.S. policy response for the domestic agenda needs to be directed toward reducing cost disadvantages related to corporate tax rates, tort litigation, and regulatory policies, among others,” Preeg said. “Internationally, currency misalignment, especially in China, has been a principal cause of the huge trade deficits in price-sensitive manufactures of the United States and Europe with Asia.
“In addition, the United States needs to have a bilateral free trade agreement (FTA) strategy for Asian trading partners, beginning with the approval of the U.S.-South Korea agreement, in order to head off the adverse impact on U.S. exports from the proliferation of FTAs among Asian nations, excluding the United States,” he concluded.
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