Despite recent headlines suggesting that the Chinese manufacturing sector is slowing down, President Joe Biden’s economic agenda has made the U.S. more reliant than ever on Chinese industry – and his ambitions for “green revolution” are leaving Americans completely at the mercy of Beijing.
In 2023, China’s annual exports dropped for the first time in seven years amid broader turbulence in the Chinese economy. The U.S. trade deficit with China also narrowed last year for the first time since Biden took office, easing from $382 billion in 2022 to $281 billion in 2023.
But these figures, which the Biden administration has pointed to as evidence of the supposed success of the president’s China policy, may mask how risky the situation still is for the United States.
As the Wall Street Journal reported on February 7, “One reason the deficit shrank is that U.S. importers might have overordered in 2022, leading to swollen inventories and less imports in 2023 even as consumption stayed strong.” In other words, the American economy is still being inundated with Chinese goods, and no progress has actually been made.
As the Journal also reveals, parallel increases in U.S. imports from Vietnam and Mexico last year are likely in large part driven by Chinese manufacturers moving operations to those countries to skirt U.S. tariffs on Chinese goods.
Moreover, it’s possible that the U.S.-China trade deficit actually may not have decreased at all given serious concerns about Chinese currency manipulation. Dr. Wolfgang Klingermann, a retired professor of economics and economic advisor to the German Christian Democratic Union party, has said that the Chinese government is artificially lowering the value of its goods to make it look like the trade deficit is shrinking – a crucial fact that he warns has been overlooked by the U.S. government.
China still accounts for nearly 30 percent of the world’s manufacturing output, and the United States is still China’s largest trading partner.
The Chinese Communist Party has also remained optimistic in spite of the Biden administration’s rhetoric promising to decrease U.S. reliance on Chinese goods – another sign that Beijing does not believe Biden’s words will translate into concrete action. The CCP still projects that the Chinese economy will grow by more than five percent in 2024, and is pouring money into its manufacturing base under the assumption that exports will grow again this year.
Dr. Klingermann warns against the dire consequences of Beijing’s manufacturing policy for the United States and the rest of the world, saying, “China puts the world under a threat of an overproduction crisis, potentially forcing other countries to shrink their investment and, thus, economic growth.” This means fewer manufacturing jobs outside of China and more dependence on the Chinese economy.
This type of disruption is already visible in some industries such as steel. While overall Chinese exports were down in 2023, S&P Global analysts estimate that China’s steel exports likely exceeded 90 million metric tons – a six-year high, and more than nine million more tons than the U.S. produced last year.
Professor Anatole-Honore Lodovici, a former economic advisor to French President Nicolas Sarkozy, believes that China intentionally flooded the market with cheap steel after seeing new climate regulations imposed on the steel industries in the E.U. and the United States.
“It is a classic de-industrialization move that hits at the heart of the American economy,” Dr. Lodovici said. “Beijing is not concerned that the E.U. and U.S. labeled Chinese steel as ‘unsustainable.’ It is interested in markets that the West is abandoning.”
Biden’s so-called “Inflation Reduction Act,” which contains more than $1.2 trillion in “green” subsidies, is also a huge opportunity for the Chinese manufacturing sector. Owing to Beijing’s outsized market share in the production of rare earth minerals, solar panels, electric vehicle batteries, and windmills, the policy is in effect a much-needed lifeline for the Chinese economy.
Europe is now seeing the perils of relying on Chinese manufacturers in pursuit of its green ambitions as imports of Chinese EVs are decimating the European auto industry. European lawmakers are now frantically attempting to stem the tide of Chinese EVs, but it may be too late to undo the damage.
Although U.S. lawmakers have wisely created a legal fortress to keep Chinese EV manufacturers out of the United States – for now – the same cannot be said for other renewable energy staples like batteries and solar panels.
Professor Lodovici explained that the CCP is using government dollars to prop up Chinese manufacturers of these products with the express purpose of maintaining a hold over the U.S. economy. “To finance these firms, the CCP is using the government investment fund leveraged by China’s foreign exchange reserves estimated by economists to be worth $4-5 trillion,” he said. “These financial instruments exclude foreign capital, so they circumvent foreign sanctions.”
Last month, Chinese dissident and economist Dr. He Qinglian also wrote for Voice of America that Xi Jinping has “ordered strategic industry to rely only on government investment like in the mid-1980s.” In other words, Beijing is attempting to bring its manufacturing sector more directly under the control of the CCP in order to better wield it as a weapon in the ongoing competition with the United States.
All of this activity appears to be with the express goal of keeping the United States reliant on China in the event of a conflict. As a corollary to this, Beijing hopes to replace the United States and the West as the primary economic force in Africa and Latin America.
The only solution now may be even more aggressive protections for U.S. industry – a strategy which Biden has thus far seemed unwilling to pursue.
Former President Donald Trump, however, has recently floated that he would consider a 60 percent tariff on Chinese goods. “I can’t think about any solution that would be more effective than the former president offered,” Professor Lodovici said.
Dr. Klingermann agreed, saying, “the bigger, the better,” and added that when Donald Trump imposed tariffs on Chinese goods in 2018, “Beijing was in a panic.”
Regardless, one thing is clear – with Joe Biden in office, no one in Beijing seems to be panicking, and that’s bad news for the American people.
Ben Solis is the pen name of an international affairs journalist, historian, and researcher.
Biden being allowed to be installed as POTUS has the best thing to ever happen for China, Russia, Iran and North Korea. He just keeps giving them whatever they want, and the American people get stuck with the bill. Oh, and you can add much the EU countries to the mix as well, as Biden has bent over backwards to adopt every onerous regulation, they put forth to harm American business innovation and success. Biden just keeps on giving and giving and giving…for everyone but the American citizens he is supposed to represent. Shame on the citizens of the United States for allowing Biden to remain in office for as long as he has.
It should be obvious to everyone, Biden and the majority of politicians in Washington are CCP hacks. Also probably on their payroll, only solution is vote all of them out
Again America was warned that this idiot would try and cripple this country to solidify his family business in China! Which is covered by the 24th Amendment. But Noooo! For some reason Republicans feel it’s not a priority, they will let him finish out his term and he will go away.Fools! This would be king(FJB) Stole an election once and now he and his Oaf’s will steal it again either thru a rigged election or through the courts. Again you’ve been warned!
Dictator Beijing biden is GUILTY of Espionage and Treason selling U.S. Secrets to Communist China, Russia, Iran, and other countries since 1973, with STEALING SENSITIVE HIGHLY CLASSIFIED DOCUMENTS and hiding them in an OPEN GARAGE while SPYING ON and ATTACKING AMERICANS.
Yet, their Illegal scam trial against President Trump when NY wants $350 million to pay for their Illegal Alien Terrorist Invasion and specifically stated they will make President Trump pay it with their continued Election Interference.
But Dictator Beijing biden continues his Communist China agenda of SELLING OUT the United States and the DOJ does NOTHING.
WAKE UP AMERICA!
Dictator Beijing biden is the NUMBER ONE NATIONAL SECURITY THREAT. Just look at our Borders and how he keeps selling ALL of our Energy, Farmland, and Industries to Communist China while shutting down our economy, our FOOD Half-size with continued RISING BIDENFLATION, and Energy Independence while Communist China keeps building at least 10 COAL POWERED PLANTS every week (FACT).
We still get GARBAGE products for OUTRAGEOUS prices and not Made in the United States.
As usual, from day one of Dictator Beijing biden becoming a democrat politician he has continued for 51 years to put AMERICANS and the United States LAST. He runs off at the mouth that he and his Communist Party are for the United States. BS.
Actions speaks volumes and he has proved for the past 51 years he’s NOT for the United States of America.
Sweet President Trump is a very successful businessman who risks his life, every time he goes out in public, because he loves and puts America first. He is just like our Founding dads.
Actually this has been going on for decades. There was a PBS special years ago about China owning us because they made EVERYTHING cheaper. Quantity over quality and that beat still goes in—even worst.
When we go to the store
I can not find American made productos I need
Even if I want to pay extra
I find myself force to buy Chinese products because that is the only products I find at the store to buy.
We need to make everyday items
Biden is making hard or almost imposible for American intrepenurs to manufacture American made products with too many regulations that manufactura can not make a penny of profit
Because the government is so massive an expensive
That people op out living on welfare
As the government gives money easier as welfare than allowing people their own business
We have created a Lot of socialist that only think that money grows on trees
Not that we work to get money
Another teaching that is breaking the country USA
trump was trying to change this. the dmeocrats claimed he was starting a trade war with china.
I would rather have a trade war then no jobs. You democrats are stupid people.
The Biden administration hasn’t had a successful policy yet!!! And when Joe started talking about an EV mandate, I thought that there were some underhanded things going on!! We don’t produce the kind of products in our country anymore that would be needed for these vehicles – those companies have all taken their resourcing to other countries with cheaper labor forces!!! I truly believe that Joe and Democrats will sell out the United States and its citizens to the highest bidder!!! And I wonder how many politicians are also on the take from CCP – Swalwell, Schiff…..
Juan Williams on Fox News audiences today claims President Biden is doing a great job, citing for example “unemployment is down”. What he did NOT acknowledge is that those figures don’t come close to where #45 did, & the biggest elephant in the room, is illegals are taking American Citizens jobs! They need to be more accurately ACCOUNTABLE for their statistics! Biden & his Administration is allowing a hostile takeover of our Nation. That should be enough to impeach every single government official for their part!
Useless joebama is owned by China, ukraine,Russia, Iran and the marxist democrat party scum.
No bottom to their corruption, immorality or hatred. Power is their god!
If we were to live like Chinese and work like slaves we too would be producing tons of cheap junk
FJB is a damn Communist, what is so hard to understand about that concept?
Well, it seems the US can and will not even attempt to compete with China as an industrial power. I still vividly recall the movement of our industries to China as being a swell idea because with the move the US could live fat and happy as a service based economy……..a nation of food servers and sellers of items made in places like………..China.
The industries fled our shores over profitability. Fleeing excess taxation and regulation. Don’t blame them, blame the short bus riding politicians America has “enjoyed” since around 1988.
We killed ourselves and now forevermore are searching for someone else to blame for that suicide. Reality will show we have no one to blame but ourselves.
Can we ever get an American president in office again in the wake of fake elections?
The DNC puppet masters behind me the curtain were very wise to force Joey to make Kackles Harris his VP. When anyone considers impeach they think of consequences.
Hey this can’t be true. Biden is the Union President..wink..wink
This is an outstanding, simple to use platform to express my ideas and comments. Hats off to you Mature American Citizens.
Unbelievable, almost..it feels like The Twlight Zone, another joke on us. Terrible, let’s pray to never again NOT to enforce the term limits!
Biden flat out has sold out America and is the enemy oft he state.
The proof of the radical left is in the recent appointment of a Chinese citizen (she is NOT a US citizen) to the Election Commission in San Francisco, CA, even though she legally cannot vote in the US. Even more aggregious is the fact that she held her swear-in ceremony in Chinese. You think there is some symbolism here? UNBELIEVABLE BUT TRUE.
So china’s trade deficit went down 100 billion while joebama and the marxist democrat party gave away 5 times that amount in Taxpayers money to other countries,illegal and corruption, instead of Seniors,Veterans and mentally ill CITIZENS!!!
What a cabal of immoral,dishonest,self serving,LOSERS!
THROW THEM OUT
AMERICA FIRST AGAIN
“Thank you Big Guy! See Hunter for the 10%” — President Xi
Why do they have to choose a moron to do a man’s job?
What should we expect. When our #1 budget deficit lender is in trouble you help him out.If not, how can we expand the federal “budget”. DC establishment measures itself by how much they can grow the debt each year. Lets face it. The Chicoms have won without firing a shot. Much smarter than Putin who belives your must slit the throat of every enemy. The Chicoms know they can outmanuver the US. Piece of cake.
Interesting if one looks back to the 60’s after President Kennedy was “mysteriously” gunned down, it seems if maybe Lyndon Johnson, who assumed the presidency, may have “assisted” in the “off shoring” of our manufacturing. Isn’t it curious that my ’02 Toyota, Tacoma was built (tho’ not engineered) in Torrance, California and the Fords, Chevy’s and GMC’s are built primarily in Mexico…hmmmm….curious indeed…wonder how much the “politicians” (being kind in naming them) have ‘benefitted’ from our loss of once great, dependable products produced in the USA…but even many of our American flags are made in …. CHINA. Oh, take an online tour of the once manufacturing jewel of the world in what’s now left of Detroit…
Anyone not able to see that Biden is destroying America should be examined to see if they have a brain. Those folks are a severe threat to our country. And should be deported.
Biden? Trow da bum out!
Maybe next year, you’ll learn about proper use of capital letters, troll?
Only traitors trade with the enemy. Or a Democrat. But then what’s the difference?
Democrats believed in “free trade” too when they supported Hitler prior to WW2.
Since campaign days
NO GOOD TRAITOR, HOPE SOMEONE HAS A GUN POINTED TO HIS HEAD….
TWA was the best airline.
So..the “evil Chinese government” is propping up some of its businesses. Thats horrid!! I mean its kinda like they gave taxpayer paid incentives to buy home made electric cars that are crappy and that NOBODY wants…….oh wait………thats America.
The US media……..including ill educated authors of pieces that appear in AMAC will never write or mention the truth. We supposedly want to ramp up industrial output in America…….but almost all of the young working age people view manufacturing jobs as being “beneath them”.
We need to address our shortcomings and leave China to China. You dont want to buy a Chinese product? Don’t and then shut up.