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Actually, China's not as much of a communist economy as some like to think. They government has allowed - for the past number of years - free enterprise, but only so long as they behave in certain ways and still promote their totalitarian government. China's also having quite a few economic issues at the moment due to their tight controls. They've hit major inflationary issues due to dictating exchange rates to the USD while the Federal Reserve has been debasing our currency. This has kept Chinese products cheap across the globe, but their domestic prices are skyrocketing.
I'm not sure I agree here. I'm more with 5Mn. If you want to race to the bottom with China, you're going to lose. Plain and simple. It's less about bludgeoning away at China's comparative advantage and more about using our own.
Don't organize the economy around arbitrarily chosen exports. Cheap imports are the real benefit of free trade. You can argue that if China wants to keep subsidizing our imports, let 'em. They're taking money from their own citizens and giving it to us. Exports are the price you pay to realize the benefits of cheap imports.
In other words, the fact that China is really, really good at what they do doesn't mean they're not still doing it wrong.
