Below is a bar graph of Trade with China over the last ten years. Please note that every year the US runs a deficit (Note that the ship in the picture is the world’s largest freighter and can carry up to 20,000 cargo containers). I looked at data back to 1985 and they all run a deficit. You can find this data on the US Census website at this URL https://www.census.gov/foreign-trade/data/index.html The numbers on the chart are in Billions of Dollars. For example the year 2016 the US had a net loss of 347 Billion Dollars in trade with China. How are we going to fix this? We cannot keep running trade deficits like these. Since China and the US are so tightly intertwined we cannot just slap trade sanctions onto China. I propose 1) a gradual reduction in trade by making more products in the US. 2) Selling more higher end technology products to China. We have to be careful when selling dual use (commercial and military use) technology.
- Technology items that are sold to the Federal Government must be made in the US. In this example I would like to see Apple moving some operations back to the US. I would remind Apple that it is time to “Hit for the home team”
- I would also remind Apple that the Johnson administration, on their last day in office, slapped the IBM Corporation with an anti-trust lawsuit for having a monopoly. That lawsuit was in place until the Reagan administration dismissed it. Which means the anti-trust lawsuit was in place thru the Nixon, Ford and Carter administrations.
- Work with State and Local Governments to provide low cost facilities for new call centers and other jobs that are brought back to the US. Establish a Tiered systems of jobs that are being brought back to the US. Once a corporation gets into the top tier then they would pay very little FICA (Social Security). The employee would continue to pay their share of FICA and Federal Income Taxes.
These are just examples of where I would start. Many more ideas need to be looked into. One of the ways that we always relied upon was selling “Big Ticket” items such as Boeing aircraft. Boeing has pretty much stopped making the passenger version of the 747 but are still the freighter version. Also, China has developed their own version of the Boeing 737 for their own use.