And anyway, it may be that America’s trade deficit with China is far smaller than currently thought. The FT:
In a joint study, the Organisation for Economic Co-operation and Development and the World Trade Orgaisation have for the first time highlighted the flaws in labels such as “Made in China” or “Made in Germany”, by tracking the origin of components and services rather than final products.
While traditional trade figures classify the sale of a Munich-assembled BMW to the US as an entirely “German” export, many of the components will have been sourced outside Germany. According to the joint study, the US trade deficit with China in 2009 was not $176bn but $131bn – or 25 per cent lower – because so much of the value of “Chinese” electronic exports include components sourced from other countries such as South Korea and Japan.