Feature

Business columns: Can China thrive without the U.S.?

What will happen to China's economy if the U.S. consumer pulls back permanently, asked David Smick<em> </em>in<em> The Washington Post.</em>&nbsp;

David Smick
The Washington Post

During a speech last week at Beijing University, Treasury Secretary Timothy Geithner assured his listeners that their U.S. assets were safe. “The audience broke into laughter,” said David Smick. But the Chinese should not be so quick to scoff at America’s economic plight. China has its own problems. It has become “overwhelmingly dependent on exports” to fuel economic growth.

What will its future hold if President Obama succeeds in his not-quite-overt effort to reduce imports by weaning Americans from their consumption habit? “What happens if the U.S. consumer—the world’s consumer of last resort—pulls back permanently?” Obama, with his “uncanny ability to make activist, even radical, proposals sound benign,” has already started to nudge the U.S. economy toward a permanently lower rate of consumption. In this, he has the backing not just of unions and high-minded liberals but also of “a segment of the U.S. corporate community” whose enthusiasm for frenetic global trade is waning.

If the recent declines in imports and exports become the norm, many of the jobs shipped overseas in the past decade could return to the U.S. When that happens, no one in China will be laughing.

Recommended

Danish mall shooting not terrorism, police say
Mall in Copenhagen were 3 were shot dead
'The Worst possible nightmare'

Danish mall shooting not terrorism, police say

U.S.: Israeli military gunfire likely killed journalist Shireen Abu Akleh
A person holds a photo of Shireen Abu Akleh during a vigil in London.
investigations

U.S.: Israeli military gunfire likely killed journalist Shireen Abu Akleh

Russia takes Lysychansk, completing conquest of Luhansk Oblast
Vladimir Putin and Sergei Shoigu
the war machine

Russia takes Lysychansk, completing conquest of Luhansk Oblast

10 things you need to know today: July 3, 2022
Smoke rising from Lysychansk
Daily briefing

10 things you need to know today: July 3, 2022

Most Popular

The turning point
Trump.
Picture of William FalkWilliam Falk

The turning point

The soul of a machine
Ones and zeroes.
Picture of William FalkWilliam Falk

The soul of a machine

7 toons about Cassidy Hutchinson's Trump testimony
Political Cartoon.
Feature

7 toons about Cassidy Hutchinson's Trump testimony