China's Wrong Turn on Trade; by Accident or Design, China Has Embraced Export-Led Economic Growth. the Centerpiece Is a Wildly Undervalued Exchange Rate

Samuelson, Robert J., Newsweek

Byline: Robert J. Samuelson

It sometimes seems that almost everything we buy comes from China: DVD players, computers, shoes, toys, socks. This is, of course, a myth. In 2006, imports from China totaled $288 billion, about 16 percent of all U.S. imports and equal to only 2 percent of America's $13.2 trillion economic output (gross domestic product). Does that mean we don't have a trade problem with China? Not exactly.

China is already the world's third largest trading nation and seems destined to become the largest. On its present course, it threatens to wreck the entire post-World War II trading system. Constructed largely by the United States, that system has flourished because its benefits are widely shared. Since 1950, global trade has expanded …

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Publication information: Article title: China's Wrong Turn on Trade; by Accident or Design, China Has Embraced Export-Led Economic Growth. the Centerpiece Is a Wildly Undervalued Exchange Rate. Contributors: Samuelson, Robert J. - Author. Magazine title: Newsweek. Publication date: May 14, 2007. Page number: 55. © 2009 Newsweek, Inc. All rights reserved. Any reuse, distribution or alteration without express written permission of Newsweek is prohibited. For permission: www.newsweek.com. COPYRIGHT 2007 Gale Group.

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