Will the american tax payers eventually have to bail out China?

Question

think of it, the worse the economy gets, and the more people have to go on welfare, we eventually will get to a point where we can not even afford to buy cheap Chinese made goods anymore, and the Chinese economy will than follow us into the tank, will we, at that point be asked to bail out the Chinese economy

Answer 1

I am American, patriotic, love my country.  But, a realist.

As the China economy grows, they will rely less and less on the USA.  Also, they (and others) hold a LOT of US debt.  If anything, China will need to bail out the USA.

We need to be VERY careful not to get ourselves farther into the the hole we have been digging for ourselves.

Answer 2

I think we are in more danger of China owning us and someday calling in their loans.

Answer 3

What da h**l are you talking about?? You ignorant fool! Don't you even know what's going on in this world?? Wow! I am soooo apalled by your ignorance!  USA owes over trillion dollars right now to China!  You idiot!  They're the ones who will have to bail USA out!  Go learn something real and not your egotistical USA delusional history in which it teaches you that USA is #1 ! Did you watch the Olympics?  USA is no longer #1 like it used to be.  Moron.

Answer 4

Nope, won't happen. For one thing no US administration would ever authorize such a large payout of tax payers money to an overseas competitor and for another thing as a matter of pride no Chinese government would ever except the money. If anything it will be the other way round. China's economy would outlast the US in a downturn and China would end up bailing the US out.

China's economy is growing and evolving. Soon it will reach the state where its own domestic markets will be competing with US consumers for the kind of cheap goods that are currently being sold by stores like Walmart, once this happens the market will become self sustaining. If anything this will lead to shortages in the US because the goods that Us consumers were buying would now be being brought by China's new middle classes.

China also has strong markets in other developed countries such as Japan (China is pretty much Japan's most important trading partner) and the EU, and is working to build markets in developing countries such as Africa and India. Soon these markets will allow China to stay buoyant even if the US were removed from the equation.

If I were you, I'd be more concerned about the possibility of China launching a hostile takeover of US interests. Chinese imports account for a massive chunk of the deficit. This means Chinese companies with  currency to hand, who are looking for somewhere to spend it.

If the economy were to tank this would significantly push down the market value of large American companies, this would leave them vulnerable to stock market/private equity buyouts from cash rich Chinese banks and businesses.

We've already seen Lenovo taking over a significant chunk of IBM, and Chinese banks have bailed out several large US businesses already by buying large amounts of stock or offering them loans when other US banks would not take the risk.

Just imagine, with the credit crunch in full, what China might do? You might wake up one day and find that Fannie May and Freddie Mac were Chinese owned, or that your mortgage has been brought by a company in Shanghai.

Answer 5

yes the sooner they start the better,

The U.S. should invest in know how in China in universities etc.

China is a poor country, only a few Chinese have money.

And the few rich in China are bad investors.

Your question is not so silly as you might think.

Answer 6

Inflated pride justifies a fall.

China is so money rich it could buy a credit crippled place like America.

Answer 7

How can we bail out them when we are having trouble dealing with our own problems

Answer 8

No, the chinese already bailed out their own economy when they lent money to the USA for those stimulus checks... the Iranians and Iraqis will be the ones bailing China and the USA out.  Can't make cheep plastic c**p without cheep petroleum!

Answer 9

s***w china but we won't have enough money to help them i don't think

Answer 10

Bail out China?  They're buying all of U.S.debt, which is saving U.S.  And they just spent $50 billion on the Olympics.  China is the richest country in the world.

Answer 11

China is far richer than the States, they will be able to ride this economic downturn much better than the States.  It would probably end up the other way round with China offering aid to the U.S.

Answer 12

China don't need our help & never has. They are shrewd & they have always been self suffecient . Not to say they won't take our money if we throw it at them. If it comes down to not being able to afford their cheap goods, bailing them out at that point will be impossible .China won't go down the tubes - they have more intrests than just the USA. If everone goes on welfare, watch out-we may be speaking chineese . It will be them or another country that will bail us out as always before-look at our debts.

Answer 13

Well, when American economy goes down to the h**l, first thing China will do is to demand Uncle Sam to pay them back with 1+ trillion dollars of US treasure bonds while they stop shipping goods to this country. Meanwhile, they will accelerate their corporation with Russia, Indai, Brazil, Iran, ... anybody but Uncle Sam and his european  friends while  the SCO (Shanghai Corporation Organization) will keep growing to become a new economy and military pact in the East. This will make Uncle Sam very unhappy and helpless. In addition to the current credit crisis and home foreclosure, every American owes $7000+ credit card debt. In reality, it is Chinese who are bailing us out of the recession, not the other way around when one thinks of how much Fannie and Freddi bond funds that China has owned.