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Originally Posted by highthief
China is a huge recipient of foreign investment in the world. Most of the that investment is from Japan, the US and now Taiwan, if you consider that foreign.
The question you need to ask is "What would happen to China if it went against the US?". Their economy would crash and they don't have a parachute. China does not pull the US strings, it's the other way around.
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Who owes whom? The trade deficit shows otherwise. The fact that they own a huge amount of our Treasury debt says otherwise.
How do you figure we pull their strings? Their economy wouldn't crash, they need us to sell their goods to, but they can very easily start selling to Russia and the EU. The market maybe smaller but those countries aren't in as much debt and the markets are fresh and eventually will surpass the US. Especially if interest and inflationary rates here go up and people can't buy as much.
I think China holds the cards, our government is broke, we are a people that the average family is $1000's in debt and wages are dropping.
China is doing to the US what we did to the USSR. Bankrupting our government and capitalizing on our weaknesses. Either we adjust and figure ways to reduce the trade deficit or we accept the fact China owns us.