Chinese Exports (other than Yao)

An interesting post from Coyote Blog regarding trade with China and an historical comparison with Japan.

China bashing during the past decade is reminiscent of the Japan bashing that
occurred during the 1980s. It turned out that Japan’s substantial export surplus
with the US, its extensive accumulation of US Treasury bonds, and its purchases
of assets in the US did not hurt the United States, but were for the most part
foolish actions on the part of the Japanese government and businesses. I believe
that similar conclusions will be reached about the parallel Chinese practices.

He posted a hypothetical from a Chinese citizen:

It is important to note that each and every one of these government
interventions subsidizes US citizens and consumers at the expense of Chinese
citizens and consumers. A low yuan makes Chinese products cheap for
Americans but makes imports relatively dear for Chinese. So-called
“dumping” represents an even clearer direct subsidy of American consumers over
their Chinese counterparts. And limiting foreign exchange re-investments
to low-yield government bonds has acted as a direct subsidy of American
taxpayers and the American government, saddling China with extraordinarily low
yields on our nearly $1 trillion in foreign exchange. Every single
step China takes to promote exports is in effect a subsidy of American consumers
by Chinese citizens.

It is an interesting thought. Certainly we know what happened to Japan. Could China really be in store for an economic downfall? It stands to reason that if/when china's economy gets to that point where the wealth in country exceeds that of export productivity the US will find another developing country to feed our insatiable desires for cheap goods. Hencho En Guatemala???