Data in the report, to be published on Monday, show that China's exports of information and communication technology - including laptop computers, mobile phones and digital cameras - increased by more than 46 percent to $180 billion in 2004 from a year earlier, easily outstripping for the first time United States exports of $149 billion, which grew 12 percent from 2003.
The figures compiled by the Organization for Economic Cooperation and Development, based in Paris, also reveal that China has come close to matching the United States in the overall value of its trade in information and communications technology products. The value of China's combined exports and imports of such goods soared to $329 billion in 2004 from $35 billion in 1996. Over the same period, the value of American information technology trade expanded at a slower rate, to $375 billion from $230 billion.
To some industry experts, the report is more evidence that China has made progress in its long-term plan to upgrade the capacity of its manufacturing as it strives to become a major economic power.
First, let me publicly compliment China's government on an amazing job. Their 10 year growth rate in information and technology goods is commendable.
Now, let me blast the US on a job not well done - on a job poorly done - on a job that stinks to high heaven. In the last 5 years, the US has lost 2.8 million manufacturing jobs and a little under 600,000 information and technology jobs. Any guess on where a large number of those are going? It appears that China has essentially become an arm of US high-tech US production. And the cost to the US is large.
Not only has the US lost high-paying jobs, it has not developed a new manufacturing technology or base to absorb all the displaced employees. As a result, these employees have had to take lower-paying jobs in other economic sectors. In addition, the US now runs a massive trade and balance of payments deficit with the rest of the world, which endangers future economic growth.
In short, China's success highlights future US economic problems. When this real estate based expansion ends, the US will have to find a new economic sphere to develop. And right now, none are emerging.
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