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The problem with China

China is outpacing the United States as a global economic leader. While President Trump has acknowledged that he had to confront China over trade even if it caused short-term harm to the U.S. economy because Beijing had been cheating Washington for decades. President Trump is not backing down despite the media and some politicians admonishing his comments with regards to his tariffs.

A little history about China is needed to fully understand the implications of what a Chinese dominated world economy would look like. China has one of the world’s last remaining communist dictatorships. And despite what their media claims, their human rights violations are too numerous to count. They have imprisoned Christians, for practicing their faith, as well as followers of other religions.

China entered the World Trade Organization WTO under certain conditions. Among those conditions were that China would loosen its controls over its population and practice more humanitarian practices.

In 2001, China's economy rivaled that of France, however it has skyrocketed in the years following its entry into the WTO. A study from the Economic policy Institute issued the following statement "The growth of the U.S. trade deficit with China between 2001 and 2017 was responsible for the loss of 3.4 million U.S. jobs, including 1.3 million jobs lost since 2008 (the first full year of the Great Recession, which technically began at the end of 2007). Nearly three-fourths (74.4 percent) of the jobs lost between 2001 and 2017 were in manufacturing (2.5 million manufacturing jobs lost)."

When China entered the WTO, it was supposed to follow a set of rules and guidelines. One of them was that China was supposed to open its markets to the United States for the importing of products.

The United States, had instituted a series of guidelines that would prevent China from over-exporting to the United States, however the guidelines were never followed. China instead distorted it's trade policies. By the manipulation of its currency, and suppression of wages of its workers, as well as as workers rights, in violation of its agreement by entering the WTO, it managed to dump low cost goods on the American market. Causing loss of jobs especially hard hit was the manufacturing industry.

While several economists, politicians, and media outlets have accused President Trump of crashing the economy, it is important to point out the following. The United States is China's largest trading partner. It accounts for almost 20% of trade with the communist nation.

Also of note is Hong Kong, while there is a division between the people of Hong Kong, and those of Beijing, Hong Kong accounts for 12.1% of trade. It is not improbable to assume that a bit of pressure for China to agree to the conditions that were originally set forth by the WTO should be followed.

Bill Clinton an advocate for China entry into the WTO has been quoted as saying, “The more China liberalizes its economy, the more fully it will liberate the potential of its people — their initiative, their imagination, their remarkable spirit of enterprise.” He went on “And when individuals have the power, not just to dream but to realize their dreams, they will demand a greater say.” However, the opposite is true. China is still a communist nation, that has strict controls over their citizens. Their media suppresses their human rights atrocities, and they have strict control over all industries. Should the World Trade Organization revoke China membership until it decides to comply with the rules? Should Trump continue to impose tariffs upon China, or should we decide as a nation to boycott trade with China? What do you think should be done with this rogue nation?

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