The real problem is China has a false economy. They do not trade their currency on the open market. So what ever they set there currency at for there people is what it is.
Case in point, we can sell raw materials to China, lets say pulp for the paper industry. Then we turn around and buy the paper back cheaper than what we sold them the pulp for. Ask yourself how can that happen?
If they traded there currency on the open market things would probably change, maybe for the worse, who knows I am no economist.
But in the mean time there people have a decent standard living with there inflated currency at home. The rest of the world is gettign cheap goods and the bulk of the trade is going to China.
Free trade maybe............Fair trade I think not!
The Korean car Hyundai, which I happen to own and love. They have been outsourcing those to China for a decade now. However the cheaper models, not made for the global market are still made in Korea.
It is not just the US that is losing there jobs to China, the whole world is.
We have lost entire industries to China, starting from the steel industry some time ago.
They are very good at copying and putting out cheap products to the world very fast.
