the relationship between China and US

The recent worldwide economic downturn has shown how deep the trade relationship between the US and China is. With American consumers watching what they spend and spending much less, and also now wary of Chinese products after lead paint on toys, the formula scandal, the tainted food... well, people do spend much less on products from China. In turn many Chinese factories have slowed production or even closed down. With unemployment on the rise and people earning less in China, their own economy suffered. If the US decides to be less dependent on imports, China will suffer as the US is a major trade partner. Of course if China right now would decide not to do trade with the US anymore, both sides would suffer, lol. Anyhow, whatever trade barriers there are will determine the relationship and economic development in each country. What China has to realize though is that American companies can easily build factories in other countries and find cheap labor and production environments. So it would be wise for China, and they have done it, to expand trade and attract companies from other areas of the world. But as of now, China is still very much dependent on trade with the US, and the Chinese leaders as much as they hate it and tend to test the borders of the relationship to spread their wings, know that very well.

All American factories will close. We will make nothing here. We will send all of our money to China, and then borrow it back from them by selling them bonds. Eventually they will decide that instead of just buying bonds, they will use the money to buy American companies and real estate. Eventually we will owe them so much money that we will end up giving them some territory like Guam or part of Hawaii or something.