You might be shocked to learn the United States still provides development aid to China. Then again, you might already have adjusted your assessment of America's political elite low enough not to be shocked. (h/t Lou Pagnucco)
Washington, DC—Senators Jim Webb and James Inhofe, chair and ranking member of the East Asian and Pacific Affairs Subcommittee, today called for an end to U.S. development aid to China, now the world’s second-largest economy. Since 2001, the U.S. has provided more than $275 million in direct assistance to China for projects such as expanding internet access and improving public transportation. In addition, China receives billions from multilateral institutions like the United Nations, to which the U.S. is among the largest contributors.
“With more than $3 trillion in foreign exchange reserves and a double digit economic growth rate, China certainly has the financial resources to…care for its citizens without relying on U.S. assistance,” the Senators wrote to appropriators. “As the committee reviews current appropriations bills, we would request that in FY2012 you end all U.S. aid to China—other than programs that assist the people of Tibet or promote respect for human rights and democracy in China—and direct our representatives at international organizations to work to end multilateral aid to China.”
China currently owns $1.2 trillion of U.S. Treasury debt and has launched its own multi-billion dollar foreign assistance program to rival the U.S.
Both the United Kingdom and Australia announced this year that they will no longer provide direct assistance to China.
The bipartisan letter was also signed by Senators Kyl, Boozman, Levin, Reed, Manchin, Casey, Kohl, Rubio, Tester and Menendez.
To put that in perspective, in May alone the US ran a $25 billion trade deficit with China. Their leaders must be laughing at us. Our total trade deficit in May was $50 billion. We are in hock to the world and still giving out development aid.
China's not amused by our spendthrift ways. China's official news agency just sent out an editorial calling on the US to make substantial cuts.
In addition to recommending "substantial cuts" to "bloated social welfare costs" in America, the Xinhua editorial pointed to what it characterized as a "gigantic military expenditure."
China, the largest creditor of the world’s sole superpower, has every right now to demand the United States to address its structural debt problems and ensure the safety of China’s dollar assets
Since Bill Gross says the latest deficit reduction deal will have very small impact I think we are letting down our bankers in Beijing.
|Share |||By Randall Parker at 2011 August 07 03:58 PM China Mercantilism|