Chinese Mercantilism – Hurting U.S. Economy

Editor’s Note: Pat Choate has provided EconomyInCrisis with a summary of highlights from his upcoming book Dangerous Business: The Risks of Globalization for America, to be released on August 12, 2008.

A modern-day economic predation now exists on a massive scale whereby governments and their domestic industries work together to increase national wealth by increasing exports, while maintaining an economic “moat” around their countries through the regulation of direct foreign investment, the strategic limitation of imports, and a government-controlled build-up of huge financial reserves.

Chinese mercantilism is the most aggressive of all nations. Under present U.S. trade policies, most American producers are unable to survive because they are engaged in global competition with Chinese rivals that are overwhelmingly government-owned and subsidized.

Now a new kind of economic risk for America arises -- the rise of sovereign wealth funds that possess trillions of dollars of capital. The Government of China already possesses enough capital to buy absolute control of more than 25 percent of all U.S.-based corporations listed on the New York Stock Exchange. Will future U.S. Presidents and Congress allow a communist government to buy and control a major portion of America’s means of production?

Pat Choate is an economist, author of eight books and was the 1996 Vice Presidential running-mate of Ross Perot for the Reform Party. Choate received his PH.D. in economics from the University of Oklahoma. Choate's new book "Dangerous Business: The Risks of Globalization for America" will go on sale August 12, 2008 and pre-orders are available at Amazon.com

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