eyrei said:
I really think this has a lot less to do with economics and more to do with fear of Chinese military power. Until we have a peaceful world, free trade is going to usually take a back seat to matters of security.
Just using the CIA Factbook to put the military angle in perspective..
USA
Total: 9,631,418 sq km
Population: 295,734,134
GDP Total: $11,750 Billion
GDP per capita: $40,100
Military Expenditure: $370.7 Billion
China
Total: 9,596,960 sq km
Population: 1,306,313,812
GDP Total: $7,262 Billion
GDP per capita: $5,600
Military Expenditure: $67.49 Billion
Let's see what we have..
Military Expenditure
China spends $67 billion and the US spends $370 billion. But it is China's budget, at about
19% the American budget, towards upgrading and expanding what is generally accepted to be an outdated military that is cause for concern, alarm and hysteria.
China and US total territory is similar in size
There isn't too much to compare. The US has approximately 1% more territory to defend than China. Hawaii, Anchorage, Miami, and Vegas are indeed quite valuable, that the addition of this 1% of sovereign territory should justify a military budget
FIVE TIMES greater.
China's GDP weighs in at $7,626 billion, the US at $11,750 billion
This puts China's military expenditure at ONE PERCENT GDP, and American military expenditure at THREE PERCENT GDP. It is difficult to put an economic price on sovereignty. Nonetheless, it is not so clear economically, that American sovereignty is worth
THREE TIMES Chinese sovereignty.
China's population comes in at about 1,300 million, the US at about 295 million
This means militarily, China spends approximately $52 per person, and the US more or less $1,250 per person. Compare this to the GDP per capita, with China at $5.6K and the US at $40.1K. It is interesting that in dollar terms, an American is eight times more productive than a Chinese, but the security and life of an American is
TWENTY THREE TIMES more valuable than a Chinese.
In absolute terms, despite all the hoopla over the massive uncontrollable growth of the the Chinese military budget, it has recently become a whopping gargantuan
ONE-FIFTH of the US budget. The words, non-starter, pretender, no contest, and peanuts come to mind. In relative terms, by measure of territory, total economic power, productivity, and population, it is simply an embarassement.
One would think the Chinese government is acting irresponsibly. If China were democratic.. it might be a good time for an election! If the hawks were Chinese, they would (and arguably should) be dissatisfied with China's undeniably and objectively inadequate military budget. Instead, our hawks are American, and what they imagine and what they want us to believe is, as per the norm, anything but the truth.
The hype, fear and drama over China's military expenditure to deny economic participation is a shallow excuse best characterized as propoganda, propoganda, and well.. propoganda. Depending on one's perspective, hypocricy may also be accurate.