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  • Donald Trump Has A Lot to Learn About China

    This is how Donald Trump recently described China: “They’re making all our products. They’re taking all our jobs. And then they loan the money back and we pay them interest. It’s an amazing phenomenon.”

    A strong statement, but only one-third of it is true.

    China is not making all of our products. Imports of goods from China are just 2.5 percent the size of the U.S. economy.

    China is also not taking all our jobs. According to Heritage Foundation analyst James Sherk, “Research shows that trade has had little effect on overall manufacturing employment. Instead, it has shifted jobs from less productive firms to more productive domestic firms.”

    China does, however, loan the U.S. government boatloads of money for which U.S. taxpayers pay billions of dollars in interest. Last year alone, China bought $204 billion in U.S. Treasury bonds and notes. Of $414 billion in U.S. interest payments on Treasury securities last year, $142 billion went to foreigners in China and elsewhere.

    Just who does Trump think is responsible for this amazing phenomenon? Chinese economic ministers did not force the U.S. government to run a $1.3 trillion deficit in 2010. Our politicians did that without any outside help.

    We have a trade deficit with China in part because the U.S. government finances its activities by selling China hundreds of billions of dollars in Treasury debt each year. That soaks up dollars that could have been spent by China on U.S. exports or invested in productive private-sector companies.

    The one Heritage Foundation paper Donald Trump needs to read is The United States vs. China—Which Economy Is Bigger, Which Is Better by Heritage analyst Derek Scissors. As Scissors explains:

    America can and should win the economic competition. However, it should not hope for China’s failure. An economically weakening or stagnant China hurts the rest of the world. In contrast, a China on a more sustainable course benefits everyone.

    As a prominent businessman, Trump is positioned to highlight the many tax and regulatory challenges that make it difficult for U.S. companies and workers to compete. Focusing on these made-in-the-USA problems would allow him to have the greatest impact on our country’s future.

    Posted in Economics [slideshow_deploy]

    23 Responses to Donald Trump Has A Lot to Learn About China

    1. Bobbie says:

      Mr. Trump was exaggerating a legitimate state of fact. He knows China has advantage, as poor governing put us in a state of desperation.

      We believe the Ryan plan is the way to go and cleans up alot of what shouldn't have to be dealt with. Government overreach of control, government corruption and government irresponsibility. We do appreciate honesty where our earned money is taken from our control.

      Heritage, I'm hoping you will accept an opinion regarding Mr. Trump's quest for truth surrounding Obama's ill will to share his past personal lifestyle?

      short birth certificate form certifies a life in a state of location. Anybody with a baby can fill one out. I was born after Obama and the “original birth certificate” is one that consists of the foot prints of the new born and statistical information of and at the time of birth. I would think the position of presidency of America and in the age of time after 911, would require more than a certificate of birth from those running for presidency of America.

      Cultures and strong beliefs plan things years in advance and with this president's unwillingness to share his past without question is another set up of something planned years in advance. He does share his fact of education for 8 yrs (according to him) in Indonesia but not what it was spent on other than going to school? He didn't share his studies or any comparison to America's schooling or his personal childhood.

      His background is like no other president, yet he spends money to cover his up. You'd think if he got anything positive out of his 8 yrs foreign schooling, he would want to share that.

      But the President isn't very honest when he keeps people in the dark and insist on mind games that build suspicion. It's truly disappointing that anyone born in America would be so ungrateful to do everything including observed hypocrisy, deception, and manipulation to bring this country, her concepts of freedom, individual liberty and justice for all and the strength and dignity of her people, to a collapse. It's appalling that people wouldn't appreciate truth without cover. With all he has done within his control, It would almost be relieving he wasn't born in America. I don't doubt it's a set-up and why is the danger behind it.

    2. Frank J. Randazzo Cy says:

      the donald is right and the republican country club blue bloods are out to get him .why don't they say the things he says . confront the left media as he is doing. they want to not make waves so they chastise him.

    3. OhioHistorian says:

      The truth and the Donald have never been great pals. It would be too bad if we elected another person who is a stranger to the truth after the one we have had there for the last 2+ years.

    4. Greg B. Vail, AZ says:

      I would like to see where the writer gets the 2.5% figure. Ever try to buy anything in a hardware store that DOES NOT say "made in China"? You name it, it is almost certainly made in China. Garden tools, mechanics tools, pails, mop handles, cupboard fixtures, hinges, ad nausium. We need to start making this "little things" here in the USA, again.

    5. Darla Dawald, Patrio says:

      A link to the 2.5% figure substantiating that figure would be beneficial. Thanks

    6. someone, CA says:

      @Greg B. Vail, AZ, many imports say "made in Mexico" and "Taiwan" also. They are not all from China.

    7. Chuck Clark, Raleigh says:

      2.5% the size of the US economy? What sort of comparision is that? Much more useful to measure imports from China against all imports! Makes me suspect of the validity of the rest of the post.

    8. Leon Lundquist, Dura says:

      Pardon me for defending The Donald. I like Trump because he has a spine! Sure the generalities aren't true. But look, our biggest retailer is Wal Mart, and they do sponsor Chinese goods. But I agree, it isn't China's fault they produce substantial goods for the American Market! The fact is, thanks to 100 years of Progressive regression, Americans are not producing like we should. I can't blame Trump for speaking in the Active Voice (English style of Populism) because, frankly, Americans have been bamboozled by Academia! They are still getting away with the common Statistics lie, a bigger percentage of small numbers looks bigger than it is! So they say our Economy is doing fine because after killing all the American Jobs that were vulnerable, a few junk jobs have been created. "Wow! A half of one percent increase!" It doesn't mean our Economy has turned around. It means the Progressives haven't killed them all! (Don't worry, they will get around to it!) We were losing half a million jobs a month! "The good news is we are losing less jobs!" Hooray? Really? Big improvement, we are losing 100,000 jobs a week?

      Donald Trump could learn a thing or two from reading Derek Scissor's fine Paper. But I think we were shaken down by Government Agencies who delivered Bad Policy when we paid them Billions of Dollars for good policies! China is somewhat Nixon's miracle, when he split the Soviet Block! I don't think we should demonize China! With Totalitarian Dictatorship being set up in the Obama Administration we don't have the moral high ground to criticize China! Noblesse Oblige? That is just as dispicable as State Socialism! Trump gets criticized for his 'Birther' stuff, but beyond the point, 'Precedent' Obama was never Vetted! The Birth Certificate is just the tip of that iceburg! Democrats still don't know their Political Party was usurped by Communists! Obama was Appointed to Office! There is a Spoils System! He got High Office for his 'great work' causing the Housing Crisis! (Through ACORN and its intimidation of Banks!)

      Maybe if the Republicans saw a spine they would get one! Thank you Donald Trump!

    9. Jan - Chicago area says:

      I understand what Trump is saying. Nearly everything we buy is imported. And yes, a lot from China. We do owe them boatloads of money. Dangerous situation.

      However, nowhere in Trump's quote do I see him blaming America. Riley says: "Just who does Trump think is responsible for this amazing phenomenon? Chinese economic ministers did not force the U.S. government to run a $1.3 trillion deficit in 2010. Our politicians did that without any outside help." I do NOT see Trump blaming America. He notes that the amazing phenomenon is that America's politicians have done this!

      The quote from Heritage analyst Derek Scissors does not make sense in this argument. Trump has not said that he is out to see China fail. But that is the implication, isn't it. Spin, spin, spin.

      Trump makes more sense than politicians. Maybe that's why he is becoming popular. Just shows how forming a premature opinion of someone can color your interpretation of everything that comes out of that person's mouth. To me that means that Riley's post lacks credibility.

    10. Tim, Coupeville, WA says:

      2.5% is correct for the statement which it was made. It's 2.5% of the economy, not 2.5% of the goods used in America. The economy is much more than manufacturing, just as the price for a barrel of oil is based on much more than the average consumer's gasoline for their car. As far as Mr. Trump, I do NOT want to have another "pop-culture President" put into the white house. Being President is not a popularity contest. Obama's campaign started 3 years ago. I hope it's too late for the prom king to salvage his crown, but Donald Trump would be no better, that's for sure.

    11. Lloyd Scallan (New O says:

      I am no great fan of Trump. But having said that, I don't agree with HF taking shots at someone that has raised questions and, in his opinion, provided answers, dispite not being main stream. Why give the leftist more ammo to

      attack Rebublicans that for the most part I am also not a great fan. But like the last election, what choice do we have. It's past time for a conservative political party.

    12. Charles Lamb, Hanna says:

      I would like to propose that the Heritage Foundation compose a Balanced Budget admendment to the Constitution and start it circulating among the state legislatures. I would bet that at least 38 of them would pass it and the pressure on Congress to do likewise would become intolerable.

      Just a Thought,

      Charles Lamb

    13. Linda, TX says:

      I remember all the flak Sarah Palin received and is still receiving even though the 2008 election is close to 3 years behind us, from not only the liberal left, but from the GOP, and I feel that anyone who stands up and tells the truth is going to be under attack.

      I've absolutely had it with professional politicians and politicians in general. We elect with eyes widely closed politicians who are wealthy, addicted to power, and who are totally out of touch with the American people, and that includes those who recently won in 2010 with Tea Party endorsements, only to go back on their word, as usual. At this point, I wouldn't believe the politicians and the media, with few exceptions such as Rush or Hannity, if their tongues were notarized!

      So, when comes right down to it and the casting of my vote is between a professional politician or a successful business man who has dealt, on a business level, with China or OPEC or any of the countries that the US is subsidizing and who are all taking our money and stabbing us in the back, my vote goes to the successful businessman,

      Wasn't it about 32 years ago when the pundits criticized an actor running for the nation's highest office? Well, to quote that man, there you go again!

    14. Robert Stane says:

      I agree with Donald Trump. We have the highest corporate tax rate in the world at 35%. But China's corporate tax rate is zero. Also, the government of China manipulates their currency to inflate it and therefore sell their products even cheaper. There has been a trade imbalance with China in excess of $300 billion every year since the Clinton era. Now they are lending us the money we gave them, to almost a trillion dollars with interest. The Bible warns, "the borrower is the servant of the lender." They are taking our money and investing in a massive military buildup, milling out nuclear subs and high tech space weaponry. Trump's assessment is correct. We need to be strong and bring fairness to this trade deficit.

    15. Jim, CT says:

      Greg, the 2.5% figure can be verified using statistics provided by the federal reserve.

      Monthly imports from China can be found here (click 'view data')

      In 2010 we imported $365 billion from China.

      Gross Domestic Product data can be found here

      2010 GDP amounted to $14.66 trillion.

      365/14660 = 2.5%

      This is a good article. Our economic difficulties are self imposed. Donald Trump either doesn't know what he's talking about or he's pandering. In either case, he isn't fit to be President.

      On a side note: the US exported $92 billion to China in 2010 and China's 2010 GDP was $5.87 trillion, so our exports to China are 1.6% the size of their economy. That's about the same level as we imported from China in 2004. I seem to recall an awful lot of China bashing way back in 2004. Do you suppose Chinese people complain about American products flooding their country at the same level some Americans complained about Chinese products in 2004?

    16. Linda, TX says:

      I'd LOVE a party shake up! It desperately needs shaking up to make it wake up!

    17. Sallie Jager says:

      I, too, was dismayed by mr. Trumps statements.

      I would hope that he would have a better understanding of the problem than he has shown lately.

      I do hope you will be forwarding this and similar articles to him, in order to enlighten him. Thank you

    18. tom says:

      Sir, I would have to disagree with you concerning goods from China. When 12 manufacturing plants have closed in our small town of 30,000 in the past five years. Try buying anything which has made in America label .

      That said, I would have never thought AMERICA would be borrowing money from any country, and China of all places. AMERICA HAS LOST IT'S STANDING WITH ANY COUNTRY. PERHAPS BORROWING FROM JAPAN AFTER WORLD WAR II . THIS IS A DISGRACE.

      Our wars are taking us down fast. All the tanks, guns, planes, equipment and men and women scattered across the world, which we the American tax payer picks up the tab.

      Then we have half of Americans on some type of disability, which have never paid into the system. They can work, but social security is not checking and our great lawyers are getting them money. Lawyers should not be in the business of ripping off tax payers

    19. Joe says:

      One big difference between the USA and China is that their backroom deals are done on top of the table and here it's under the table. The Chinese businessmen hate their communist government's greedy hands. Here we have more freedom there they have more money. The rich Chinese man's agenda is to hide money from their government, lots of it. When they figure they have enough (500 million or more) they split, to the USA with their family.

    20. Gary Hench says:

      I seem to remember another Businessman/Politician who gave the presidency a run for His money……Ross Perot.

      And, for his efforts, we got Bill Clinton.

      I'm inclinded to believe that history does not repeat itself, but it does parrell itself. The parrell gives us four more years of Obama.

      just a thought

    21. mitchell says:

      I do know he knows more than Obama,about China.I don't believe any thing comming out of the White House.I do know every I see in Wal- Mart is from China.

    22. Mike, Wichita Falls says:

      If everything at Wal-Mart, or wherever you shop, is made in China, then you have standing to complain, but I don't think that is the case. If however you choose the Chinese-made goods over the American-made goods because they are cheaper, you may be a smart person, but you have no standing to complain about Chinese-made goods. It's here because we demand it. Is the almighty dollar of greater value than our patriotism? I think we can have our cake and eat it too if we simply elect officials who will unleash our economy…less tax, less regulation, etc. Again, we still have the power to change things for the better.

    23. Bob says:

      Sir, I must take a disagreeing stance with your opinion. I find this website usually to be very reliable and agreeable, but this is lunacy. A quick survey of everything in my home that I have recently bought (and I have purchased quite a bit due to a remodel) and the majority of the goods were made in China. You also compare a statement about goods to the entire US economy. A great deal of the US economy is made up of services, ect. You do not make a legitimate comparison.

      I like one individuals comment about how its our own choice to buy the chinese made good. That's right…we buy it because it is cheaper.. we are smart after all!! So tell me how adding a tax to chinese goods wouldn't reverse that habit????? I believe that's one of Trump's action items!

      Its about time we get the policiticans out of the politics and take our chances on a man who understands and has the capacity to make business profitable. The government is a business after all. Or maybe I am mistaken. I would rather take my chances on this man then on another monkey from either party.

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