I am not a protectionist, but I sure do not advocate being played the fool either. Is China being equitable with us on trade policy? On the face of it, I highly doubt it. They run a $120 billion annual surplus with us, and now their companies are bidding for more of our companies. Do we want the Commies to nationalize these companies, where they start to dictate to us politically and have financial leverage to back it up?

This is one of the greater untold stories of wealth transfer in the world's history, i.e. America's wealth being transferred voluntarily overseas because of our consumption patterns and trade. This will be a major problem if it continues (above what is being felt already), and the awareness of the American public to this issue is just not there.

I believe in free trade but fair trade. A number of these countries are convinced, and somewhat rightfully so, that they got us where they want us on trade disputes because of their knowledge of the consumption patterns of the American public. Naturally, some countries will always run trade surplus and some deficit, but I would appreciate anyone being able to tell any major country that we run a surplus with. We are over $600 billion in the hole on trade every year to all countries, and no one seems concerned about it. Hanson reported a few months back that we became a net importer of food for the first time because of the maze of trade subsidiies and unlevel playing field. Toyota recognizes this, they are scared like hell that we will wake up to this issue and curtail their business. Look at the layoffs at GM as further validation of this problem.

Level the playing field or begin to become protectionist with those that won't cooperate with us. We either all win or no one wins I feel, but this stuff where the other countries win at our expense is not sustainable.

One minor correction. CNN Money reports the Chinese surplus at $164 billion for 2004, rather than the $120 billion I posted before. The UNOCAL deal is starting to be debated in Congress, if this continues, this will be the first solid publicized piece of work I've seen out of the US Senate this year.