The U.S.-China Debate

The U.S. Congress is finally coming around to granting “permanent normal trade relations” to China. This is crucial to open the door for China to join the World Trade Organization. Gone from the current U.S. discussion is much of the anti-trade rhetoric that accompanied earlier debates. Our new Globalist Factsheet reveals why.

What is the most astounding thing the United States and China have in common?

Among major nations, only the United States and China were able to increase their share of world trade since 1992.

(Frankfurter Allgemeine Zeitung, 2000)

What are the numbers for each country?

The U.S. share rose from 14.3% to 16.4% between 1992 and 1999. China’s share of world trade grew from 2.8% to 4.7% over the same period.

(Frankfurter Allgemeine Zeitung, 2000)

There are some who say that China is “toying” with the United States. In what sense is this true?

In 1999, China’s exports to the United States in just one category — toys, games and sporting goods — amounted to $11.6 billion. That is almost equal to the value of all U.S. exports to China that year, which were worth $12.6 billion.

(New York Times, 2000)

Is there any danger that the U.S. military is losing ground to the Chinese military?

The U.S. defense budget, at $270.6 billion in fiscal year 1999, is six times as large as China’s defense budget.

(Investor’s Business Daily, 1998)

China is considered a big threat to the United States. Do you know how large U.S.-China trade actually is?

As of 1998, U.S. trade with China accounted for less than 1% of U.S. GDP.

(U.S. International Trade Commission, 1999)

How does that compare with one of the United States’ NAFTA partners?

Trade with Mexico accounted for more than 2% of U.S. GDP.

(U.S. International Trade Commission, 1999)

How much does the Unites States export to China?

Between 1990 and 1998, U.S. exports to China doubled to $35 billion, outpacing the growth of any other major U.S. export market.

(Financial Times, 1998)

How well off are the Chinese compared to Americans?

Between 1965 and 1995, China’s GDP on a per capita basis increased from 3.2% to 10.8% of the U.S. level.

(Foreign Affairs, 1998)

How about U.S. investment in China?

Between 1997 and 2000, annual U.S. foreign direct investment flows to China averaged $1.25 billion.

(Morgan Stanley Dean Witter, 2000)