The deal is only for $16 Billion going to possibly $50 Billion?
That is a small fraction of the $450 Billion annual trade deficit, even at the optimistic $50 Billion number.
Nobody talks too much about balance of trade issue any more. Not since the 1970s, when it went negative for the first time. If it is discussed it’s only in the context of big ticket items like commercial aircraft, or agriculture, two bright spots in an overall disaster.
Borrowing money from China at interest, to buy Chinese manufactured products. What could go wrong? All the “expert” economists seem to think this is OK, don’t they? Ever notice “sustainability” is often used when talking about growing things? They never question whether deficit spending is “sustainable”.
A lot of leftists, who at least are honest enough to admit this can’t go on, like to quote Dick Cheney - “Deficits don’t matter”;
Except, that isn’t what he said. He was talking about political campaigns, in the context of presidential elections. And on that, he is probably correct. But to suggest he was saying that the national government being in the hole for 21 Trillion $$ “doesn’t matter”. Yeah, no, that ain’t what he said.
No. 16 Billion was the previous record agri buy by the Chinese. The deal just made is for 40 Billion guaranteed with proviso’s for an additional 10 Billion.
I think the key to success with any China trade deal will be enforcement mechanisms to make certain they comply to terms.