The good news of a strong economic recovery in the third quarter wasn't enough to prevent U.S. authorities from again capitulating to domestic protectionists' demands and imposing import quotas on some Chinese textiles last month. Although this move directly affects a very minor portion of the U.S.-China trade, it shouldn't be taken lightly. It could give further momentum to recent unwarranted China bashing: that China is an unfair competitor and is the chief cause of job losses in the U.S. The Bush Administration's decision has opened the gates, and it's only a matter of time before the White House is inundated with demands from other interest groups that want their piece of the protectionist pie. This situation could become very destructive if Chinese authorities give in to the temptation of squaring off in a trade war. Before it's too late, it's imperative that the U.S. stop using China's export vigor to exorcise its external imbalances.
展开▼
