The Reasons why China Scares the US

I came acrss this very interesting article by Will Hutton about why China scares the US as the US deficit reaches record high. The article talks about how China has been replacing products worldwide, yet they don't have a single brand name that can be considered big according to the US standards.

Taipei Times - archives: "It doesn't matter that after 25 years of near 10 percent growth that has created a US$2 trillion economy, most people still can't name a single Chinese brand, and that its aspirant multinationals -- Lenovo, Huawei, Haier -- are tiny by western standards. By this stage in its growth path, Japan was boasting Sony, Honda, JVC and Toyota, to name but a few -- a telling comparison about China's genuine autonomous economic strength."

What surprises me is that it shouldn't be China alone. India is one of the biggest threats too to the US economy. And with a $3 billion hardware center being planned there, the threat is only going to increase.

--Frank

India China US deficit