Trade Deficit With China Tops Japan
From the March issue of Americans for Trade Defense
American consumers shoveled out $1 Trillion, $216 Billion, $743 Million for foreign goods
imported into the United States last year and this resulted in a record breaking annual
trade deficit of nearly $450 Billion on a goods only-balance of payment basis.
You will probably not find that deficit figure in your
newspaper since almost all the media only reports the much lower goods-and-services
deficit which was $80 Billion less in 2000 or a record near $370 Billion.
If these statistics startle you, they should. But
you must keep in mind that even these staggering trade shortfalls represent merely part of
the true deficit. Why? Because illegal drugs estimated to be between $200-to-$300
Billion and mislabeled or contraband imports are simply not counted at all. So the
real deficit could be double the $450 Billion, or about $900 Billion. In short, it is on
track to hit $1 Trillion!
Communist China ran up the biggest trade surplus
against us in 2000, a huge $83.810 Billion that for the first time surpassed Japan, which
had an $81.322 Billion surplus. However, Japan continued strong in exports to the United
states $146.576 Billion compared to Chinas $100.063 Billion.
Canada, our No. 1 trading partner,
showered us with $299.209 Billion in exports last year and Mexico bombed us with $135.910
Billion more for a combined NAFTA total of nearly $365.119 Billion. Our trade deficit with
Canada was $50.424 Billion and with Mexico $24.190 Billion, giving us a more than $74.613
Billion NAFTA deficit.
As the debate over Super-NAFTA proceeds this
year, try to remember that the United States used to run trade surpluses with both Canada
and Mexico. But since NAFTA we have sunk deeper and deeper into the deficit hole with thee
two countries and will stay there unless we get out of NAFTA a goal we should all
set for ourselves if we want to keep America.
Bloomberg News called ACCT when the trade deficit
was announced and asked what we thought about China topping Japan. Early last year we
predicted this would happen. The following is what we told Bloomberg:
Americans are buying Chinese goods to give
China the money to increase its high-tech arms buildup for the war they are planning
against us, a war their defense minister, Chi Haotian, says is inevitable.
This suicidal China trade policy must be corrected soon if America and its allies are to