decades, before a heedless congregation, some of us
have preached the old Hamiltonian gospel.
Great nations do not have trade
partners. They have trade
competitors and rivals. Trade surpluses are superior
to trade deficits. Tariffs on foreign goods are
preferable to taxes on U.S. producers. Manufacturing,
finance, is the muscle of the nation.
Economic independence is vital to
Following Hamiltonian precepts, the
United States grew from 13 rural and agricultural
colonies into the greatest industrial power in all
history, producing 42 percent of the world`s
manufactured goods. We were the awe and envy of mankind,
the self-sufficient republic, maker of half of the
armaments produced by all the nations in World War II.
That is the America we grew up
in—that has now vanished.
Chrysler, Ford, perhaps GM, may be
dying. Manufacturing has sunk to 10 percent of U.S.
employment, a level unseen since before the Civil War.
Europeans and Asians are to assemble in Washington this
week to impose upon the United States a New World
Economic Order like the one we imposed on them at
Bretton Woods in 1944.
Such are the fruits of free-trade
Across the Pacific, a nation that
studied how America rose, and watched as America
declined, chose a different path. China adopted and
pursued a China First policy of economic nationalism.
Beijing began its astonishing rise
by devaluing its currency 45 percent in 1994, slashing
the prices of exports in half and making imports twice
as expensive. As America threw open her market and
invited China to come in and capture it, China had
erected a Great Wall around her own.
Results: China`s worldwide trade
surplus in manufactures, $31 billion in 2001, hit $401
billion in 2007, a 1,300 percent increase, and may reach
$500 billion in 2008. China has shoved Germany aside to
become the world`s greatest exporter and now leads the
world in the export of manufactured goods to Japan and
the European Union, as well as the United States.
While running trade deficits with
Asian neighbors like Taiwan, to tie them politically to
Beijing, China is running record trade surpluses with
the European Union and the United States, making America
and the West as dependent upon China for our
manufactures as we are on OPEC for our oil.
Chinese auto production has
quintupled since 2001. She now produces more cars than
Germany and may exceed the United States in 2009. While
Chinese auto exports are still heavily in parts,
finished cars are coming soon to a dealer near you. The
Chinese will likely run the sword through the last
standing member of America`s Big Three.
Before 2004, China`s manufacturing
trade surplus with America was largely in textiles and
apparel. But, since then, China`s rocketing trade
surplus in electronics, computers and parts has far
exceeded her surplus in textiles and apparel.
China`s trade surplus in computers
and components rose from $8.1 billion in 2001 to $73.5
billion in 2007. In cellular phones and parts, her
worldwide trade surplus grew from $3 billion in 2003 to
$50 billion in 2007, and may reach $60 billion by year`s
China still imports commercial
airliners. But she now has a large and growing trade
surplus in airplane parts. This follows the pattern in
textiles, computers and autos. First, the Chinese learn
by assembling parts in factories in China. Then, China
begins to produce the parts. Then, China produces the
finished products and goes out to capture the world
market, while protecting her own by keeping her currency
On items the Commerce Department
categorizes as advanced technology products, America
began running a trade deficit for the first time early
in the George W. Bush years. China now exports to us
four times as much, in dollar value, in ATP items as we
sell to Beijing.
As America mothballs the shuttle,
relying on Russian rockets to get our astronauts back up
to a space station we built, China is putting men into
space and heading for the moon.
Since America ushered China into
the World Trade Organization in 2002, Beijing`s growth
rate has been four times that of the United States,
accelerating from an average 10 percent of gross
domestic product to 12 percent in 2007.
With her immense trade surpluses,
China`s reserves have surged from $200 billion in 2002
to $2 trillion. Awash in dollars, Beijing now waits
patiently, writes McMillion, to cherry-pick the crown
jewels of America`s industrial empire—"patents,
talents, natural resources, brands"—at fire-sale
prices in the
As America plunges into recession
and our industry hollows out, while China is still
growing at 9 percent, as the 20th century`s greatest
creditor nation now borrows from Beijing to pay for
booster shots for its sick economy, may we hear once
again the Bush-Clinton refrain about how the terrible
danger we all face is from
CREATORS SYNDICATE, INC.
Patrick J. Buchanan
no introduction to VDARE.COM readers;
his book State of Emergency: The Third World Invasion and Conquest of America, can be ordered from Amazon.com. His latest book
Hitler, and "The Unnecessary War": How Britain Lost Its
Empire and the West Lost the World,
Paul Craig Roberts.