Skip to comments.Exports to Mexico and China Increasing
Posted on 02/20/2014 11:58:56 AM PST by MichCapCon
Mexico and China have been painted by many politicians and unions as enemies to the American economy.
Those two countries and Canada helped Michigan set a record for exports in 2013 of $58.46 billion, according to the U.S. Department of Commerce, topping the 2012 mark of $56.99 billion.
Canada was the No. 1 consumer of Michigan goods at $25.94 billion, up from $25.4 billion in 2012. Mexico was No. 2 at $12.17 billion, a 16 percent increase from 2012. China was No. 3 at $4.15 billion, a 27 percent increase from 2012.
Michigan's exports to China have increased from $211 million in 2000 to $4.15 billion in 2013.
"It's telling us that the countries that Michigan residents fear about job competition are also the fastest growing markets for Michigan products," said James Hohman, assistant director of fiscal policy for the Mackinac Center for Public Policy.
Nexthermal Corp. in Battle Creek has added 28 jobs in the last three years, in part due to its expanding international market. Nexthermal was part of a group of several businesses that went on a trade mission to China with Gov. Rick Snyder in the fall of 2013.
Ken Sunden, vice president of sales and marketing for Nexthermal, said that while his company was affiliated with a German company, they were limited to export to North America and India.
Now they are a fully American-owned company and sell industrial heating equipment in 18 countries, including China and Mexico.
"We've essentially opened up the world to our company," Sunden said.
That’s the thing about free trade. Eventually, the other country is going to spend money buying our goods as well. What else can you do with all the money you’ve made in the USA?
Nexthermal's product offering includes:
High Watt Density Cartridge Heaters
Medium Watt Density Cartridge Heaters
Mini Coil Heaters
Flexible Tubular heaters
Die cast heaters
RTDs Heater based assemblies and sub assemblies
Engineering services to improve your total system performance
Yes, but what about the ‘56’ states?
I once heard Milton Friedman observe that while countries such as China send us hard goods, they exchange those goods for pieces of green paper. “What can they do with those pieces of green paper?” he asked. “Eat ‘em?”
In 2012, the U.S. trade deficit with China was $315 billion. This was up significantly from the year before, when the trade deficit was $295.4 billion. Both were higher than any prior year.
The trade deficit exists despite the fact that U.S. exports to China were the highest in history. In 2012, the U.S. exported $110.6 billion in goods, an all-time record. Exports in 2011 were only $103.9 billion. However, imports from China also set a record -- $425.6 billion, more than the $399.3 billion imported in 2011.
-------- And now you know the rest of the story. Good news will be when there is no trade deficit.
How about we export some Mexicans and Chinese to Mexico and China? It only seems fair.
2013 U.S. exports to China $122B
2013 U.S. imports from China $440B
2013 U.S. exports to Mexico $226B
2013 U.S. imports from Mexico $280B
Our trade with Mexico is far more balanced than our trade with China.
You can buy Treasury bills to undervalue your currency.