Many of us are concerned about China.
Where are we going? To knowing the tradeoffs that relate to our China worries.
Among the eight issues that Pew Research polled to learn about our China concerns, four were economic:
And yes, our China concerns have influenced presidential politics:
Our Bottom Line: Tradeoffs
Looking more closely at the top two of our four economic concerns about China, we can focus on the tradeoffs.
China is the top holder of U.S. treasuries. Below you can see that at the end of February, China held $1252.3 billion of the U.S. debt:
Top U.S. Treasuries Holders as of the end of February 2016 (in $ billions)
The tradeoff: The Chinese own a disproportionate amount of our debt but they are funding our deficit.
Local labor markets have lost jobs to China.
The tradeoff: We are losing higher paying manufacturing jobs but saving money for millions of consumers with cheaper imports.
So, knowing the tradeoffs, maybe we should worry less about our economic relationship with China.