From the Los Angeles Times (link), a review of “China: The Balance Sheet: What the World Needs to Know Now About the Emerging Superpower”:
If America’s angst about globalization could be reduced to one word, it would be “China.” Walk around a Wal-Mart Superstore, and every other product is made in China. Ask why Americans are so jittery about their job security ” despite near full employment in the U.S. ” and most give the same answer.
The data bear out many of these fears. China’s $202-billion trade surplus with the U.S. accounted for 27% of America’s current-account deficit in the last year, up from 18% in 2000. China’s heavy intervention in the currency markets to stem the rise of the yuan against the dollar is almost as widely cited on Main Street as on Wall Street. When China’s reserves hit $1 trillion later this year, late-night talk shows will probably cite that number in their jokes.
So it is unsurprising that Capitol Hill, which faces midterm elections in November, is threatening retaliatory measures against Chinese exports unless Beijing acts to reduce its growing trade surplus.
