U.S policy makers should resist the urge to implement protectionist policies to stem the increasing flow of Chinese high-tech exports to the U.S., according to a report released by the American Electronics Association (AEA).
U.S. high-tech exports to China have risen 191 percent since 1998, while Chinese high-tech exports to the U.S. have risen even faster, up 320 percent to US$52 billion, the AEA said, citing U.S. Census Bureau figures. This dramatic increase has contributed to the trade imbalance between the U.S. and China, AEA said, but it advised U.S. policy makers against taking hasty action.
Raising tariffs on Chinese goods will only lead to increased prices for U.S. consumers, AEA said. “We would be shooting ourselves in the foot,” it said.
In addition, China is an increasingly important market for U.S. technology exports. U.S. exports to China totalled US$8.7 billion in 2004, AEA said. But those figures only tell part of the story. If U.S. exports to Hong Kong, which totalled US$7.7 billion in 2004, are included, China is the third-largest consumer of U.S. high-tech exports, AEA said.
The increasing high-tech exports to China is good news for the U.S. economy. “Higher exports invariably create more American jobs,” the report said.
According to the AEA, the top 10 markets for U.S. high-tech are, in descending order: Mexico, Canada, Japan, the U.K., South Korea, China, Taiwan, Germany, Singapore and Hong Kong.
By Sumner Lemon, IDG News Service