China: We All Fall Down-Economic Dream Turned Nightmare

For over 700 years foreign businessmen have been risking their money to unlock the China market without success. The 1990's alone saw an eye popping US$300 billion in direct foreign investment. The Chinese have now become masters at perpetuating the illusion of a newly emerging middle class of consumers - as long as you are willing to believe that they will arrive just in time for the next five year plan. Foreign investors have not learned the lessons of the past. Taking the bait yet again they have committed huge investments in plant and equipment - especially in the automotive sector - turning China into the manufacturing "factory floor" of the world. Imports from China alone have displaced 1.659 million US jobs in five years while creating only 199,000. Our trade deficit with China is fast approaching US$15 billion - per month. Recent technology accelerators have the potential to turn the current downturn in US manufacturing into a rout. This is not how the concept of globalization was supposed to play out for the American middle class.Our government and our business leaders seem unwilling or unable to level the playing field. The trade war's battle lines are now at the consumer level.Frank urges American consumers to take the "China Challenge" and to turn away Chinese auto imports when they arrive, otherwise our economic dreams for China will slowly turn into a nightmare.