China's Metamorphosis: fr Export Juggernaut to a Credit Addict

"If the United States does decide to impose tariffs on China, Chen said,

more: http://www.informationclearinghouse.info/article25151.htm

EXCERPT:
American companies operating in China, which account for more than 60 percent of China's exports to the United States, would surely be hurt the most. ‘In the end,’ Chen said, ‘America is the one that needs to adjust.’

"While some analysts have predicted that China would soon start to let the yuan appreciate, Chen's interview illustrated the fact that there is a strong lobby in China opposing revaluation. One reason why a revaluation would be dangerous for China, Chen said, is that profit margins for Chinese exporters are tiny -- ranging from 1.7 to two percentage points." ("China's commerce minister: U.S. has the most to lose in a trade war" Washington Post)

To repeat: "American companies.... account for more than 60 percent of China's exports to the United States." That means, the head honchos of the biggest multinationals are calling the shots. China is not the villain here. After all, they're only getting a measly 1.7 on their investment. If the renminbi strengthens at all; they're in the red. China's back is against the wall. What are they supposed to do; work for nothing and let the voracious multinationals walk off with 100 percent of the profits?

Align yourselves with criminals and you get screwed.

China went into these deals to help the multinationals move production out of the US with their eyes wide open, now they too will see theres a price for dealing with those modern day robber barons.