America's real Asian trade problem

2010. augusztus 13. 14:04

Asia's growth story is one not to be missed. But right now, Washington is reading the wrong page.

2010. augusztus 13. 14:04

„Looks like we're headed for another, repetitive round of U.S.-China bickering over Chinese exports. The U.S. trade deficit with China in June rose to $26 billion, the widest gap in nearly two years. Meanwhile, the reform of China's currency regime, announced by Beijing in June, has proven to be not much of a reform at all, since the value of the yuan against the greenback has barely budged since then. Lawmakers in Washington are sure to renew their calls for punitive action against China.

But Washington is focused on the wrong issues in regard to U.S. trade with China, and for that matter, the rest of Asia. American policymakers should be much more worried about getting left out of the Asian trade story, and the potentially dangerous consequences that would have for the future of the U.S. economy.

What do I mean? Asia is becoming much more economically integrated and intra-Asia trade is growing rapidly. Part of this is just a natural process – as the region gets wealthier, its firms are finding more and more customers at home. But the integration is also part of an active policy on the part of Asia's leadership. The continent is being bound together by a strong spirit of free trade.”

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kulalak
2010. augusztus 14. 18:27
The EU is reading the wrong page as well. Not understanding that 2 billion-population countries next to each other with satellite countries in the neighbourhood WILL create FTAs is simply stupid. Highbrow europeans pay attention. You are not the center of the game and never will be. The EUs 400 some million market is small compare to these guys' playground.
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