China-Mart Takes Over
My poor beloved country, trapped in
a Middle Eastern quagmire and tricked by
Osama bin Laden into subsidizing to the tune of $300
billion (spent or appropriated) a training ground for
Muslim terrorists and insurgents while our once fabulous
If the US were still rich and just
wanted to throw several hundred billion dollars at bin
Laden as a good will gesture, that would be one thing.
But we are borrowing the money that we are using to
train Muslim terrorists to kill and maim our troops in
Londoners in England.
The money is being lent to us
mainly by Asians, especially the Chinese. China has
so many dollars to lend to us because we send so
many dollars to China to pay for the goods and services
that patriotic American corporations have decided to
supply to us from China instead of from America.
US corporations decided that the
way to get rich was to destroy their American consumer
closing their American factories, throwing their US
employees out of work and hiring Chinese instead. The
Chinese work for less, you see, and
free trade economists say lowering costs makes us
What US corporations and the free
trade economists overlook is that giving Americans` jobs
to foreigners raises foreign incomes and lowers American
credit cards and
home equity lines are maxed out, there will be
nothing to support the US consumer market. The American
corporations who moved their capital and technology to
China will have to find new customers.
Maybe the Chinese government will
let the relocated US firms sell to Chinese customers, or
maybe the Chinese government will let the US firms go
bankrupt. The latter favors China`s strategic interest.
Chinese businessmen will purchase the bankrupt firms,
and Chinese businesses will sell to Chinese customers.
Americans are pouring so much money
into China that China can finance our wars while it buys
up our companies. Everyone was shocked that a Chinese
company could outbid Chevron for Unocal. China has
already purchased IBM`s personal computer business, and
is now after US appliance maker Maytag (whose appliances
are made in Mexico).
The outsourcing mania has hit the
China will soon be supplying the ships for the US
Navy. The Pentagon, seeking lowest cost, is pushing
defense contractors to outsource offshore for more
materials, components and systems.
This means the end of US
shipbuilding capability. Component suppliers to American
shipbuilding are already skeletal thin, with most
components only having sole suppliers. For example,
Manufacturing & Technology News (July
8) reports that 80% of the components for the
Virginia Class submarine come from
With not enough US Navy ships being
built to support even an industry of sole suppliers,
Asia is fast becoming the only source for US Navy ships.
While President Bush spends $300 billion recruiting and
training terrorists for bin Laden in Iraq, US Navy ship
procurement has fallen 33% since 2001.
Meanwhile China is on a rip. China
is now the third largest shipbuilder after South Korea
and Japan. In five years China`s submarine fleet will be
twice the size of America`s. In 10 years China`s navy
will be larger than the American fleet.
This is amazing performance for a
country that as recently as 1989 had essentially no
This year the US is producing 6
ships, one-tenth of South Korea`s output. In 2006 the US
is scheduled to produce only 4 ships, because China has
outbid us for the steel. The US "superpower" can
no longer afford to compete against China for essential
Cynthia Brown, president of the
American Shipbuilding Association says that "the
manufacture of entire components and systems will
migrate to China in the next several years under current
Department of Defense policy with respect to
But, hey, we will get ships
cheaper, and it is making us rich!
him] a former Associate Editor of the
Wall Street Journal and a
former Contributing Editor of National Review,
was Assistant Secretary of the Treasury during the
Reagan administration. He is
the author of
The Supply-Side Revolution
and, with Lawrence M. Stratton, of
here for Peter
Magazine interview with Roberts about the recent
epidemic of prosecutorial misconduct.