China: March 18, 2005

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 The US trade deficit (the value of goods bought from China versus what was sold to them) reached $162 billion. That amount accounts for over twenty percent of China's GDP (total economic activity.) This has serious military implications. If China goes to war with the United States, the first impact would not be bombs, but an end to exports to the United States. Putting over a hundred million Chinese out of work would have a larger impact than any bombing campaign. Taiwanese companies also control over $50 billion of economic activity in China. Taking Taiwan, in one piece, would add about ten percent to China's GDP. But the loss of American markets would be far greater. 

 

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