China is a big producer, but their people are not big
buyers. China is an exporting nation. The Chinese produce for other nations,
primarily the USA. China is basically its prosperous, exporting coastal regions
and the poverty struck interior where the standard of living for the billion
plus people that live there is about the same as it is in Ghana. These people
are not a significant market for Chinese production.
If China was to repatriate its investments in the USA, it
might collapse the American economy….in fact, it probably would….but, it would
implode China. China depends on America!
If America sneezes, China will catch pneumonia.
Canada has traditionally tied its economy to the USA. That
is the way the natural transportation routes go. It is much easier to ship to
the USA than to elsewhere. The notion that some Canadian politicians espouse
that we should be less reliant on American markets and export to China is
myopic. Yeah, if the USA falters, Canada stumbles, but China even more so.
Trading with China is another way of being reliant on the USA. My sense of the
situation is that Canada should position itself as an adjunct to the USA
economy, but should do it competitively with an emphasis on technological development
and marketing sophistication. Canada, be part of the American economy, but be
the most outstandingly profitable part of it.
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