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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (260918)	4/7/2008 10:13:47 PM
From: neolib	Read Replies (1) \| Respond to of 281500

As for China - holding the US debt/balls - Not really. They can harm us, but only by harming themselves even more. How about rephrasing things a little: Do you think that the USA (and now Europe BTW) running such large trade imbalances with China directly impacts China's ability to fund the modernization of their military? Is it possible that this will eventually harm us? If so, then you might revisit your above answer. FWIW, there is no question that their trading position directly fuels their military expansion, just like the wealth of oil exporters can do the same. China, unlike the oil exporters, happens to much more carefully deploy their export acquired wealth, by developing domestic military technology, rather than resorting to trade to acquire it sans expertise, which is largely the Arab approach. China is a stellar example of how lopsided trade, coupled with a strong drive to develop domestic technology and manufacturing is going to triumph. The Arabs are a stellar example of how just plain trade will not do so well, despite running big surpluses.