What if China and America Stopped Trading

July 25, 2018

After establishing relations with the United States and imposing the One-Child Policy, China, in 1986, opened the country to foreign investments and encouraged the development of a market economy and private sector.

China also started the long process to join the World Trade Organization (WTO). It took China another 15 years of diplomatic struggle to became a full member of the WTO. To join, China had to significantly change its economy. These changes were difficult steps for China and conflicted with its prior economic strategy. Acceptance into the WTO meant China had to engage in global competition according to rules that it did not make

The BBC reported, “China’s formal membership comes exactly one month after the 142 members of the World Trade Organisation (WTO) ratified its application at the world trade talks in Doha in the Gulf state of Qatar, and the Chinese government formally approved the deal.”

What happened to China after joining the WTO?

WTO.org said, “in 2001, China’s trade in goods was valued at $0.51 trillion, ranking 6th in the world, but by 2014, it reached $4.3 trillion, growing over 8 times.”

By 2016, China was exporting $2.27 trillion in goods and importing $1.23 trillion,” and OEC report said.

China’s top five export destinations were the United States at $436 billion (19% of the total), $250-billion (11%) to Hong Kong, $148 billion (6.6%) to Japan, $99 billion (4.4%) to Germany, and $87.2 (3.8%) billion to South Korea.  If we subtract the United States, China exported $1.834 Trillion worth of goods to the rest of the world.

China also buys products from the United States and other countries. It’s top four import countries were the United States at $122 billion (9.9%) in goods, $121-billion (9.8%) from South Korea, $120 billion (9.8%) from Japan, and $83.7 billion (6.8%) from Germany.

If we subtract what China buys from the United States, China imports good worth $1.08 Trillion from the rest of the word, and did you notice that China has a trade deficit with some countries?  If we focus on just South Korea, China bought more goods than it sold by $33.8 billion.

What goods does China want from other countries? China’s highest value imported goods are electronic circuits and micro-assemblies, crude oil, iron, cars, mobile phones, and then soya beans.

In 2017, China exported $2.2 trillion of its production. The EU exported $1.9 trillion that year.

There is also a common misconception that the United States doesn’t make anything anymore, and it doesn’t help that Donald Trump, a malignant narcissist, and serial liar, reinforced that thinking during the presidential debates in 2016.

What do the facts say?

The Balance reports, “2017, total U.S. trade with foreign countries was $5.2 trillion. That was $2.3 trillion in exports and $2.9 trillion in imports of both goods and services.” China exported $2.2 trillion to the world that year, less than the United States exported from its manufacturing sector.

How many jobs in the U.S. does that $2.3 trillion in exports support and how many jobs are at risk in the United States due to Mr. Trump’s trade war?

CNN Money says, “analysts say that tens of thousands of American workers are likely to lose their jobs—and upwards of two million jobs are at risk—more or less as a direct consequence of the Trump administration’s trade policies, and the retaliatory tariffs that follow.”

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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Climate Change and Development in Tibet Creates Lifestyle Challenges

July 17, 2018

In 1949, 99 percent of Tibetans were mostly illiterate serfs. Serfs have always been treated as an inferior element in society. As serfs, most Tibetans depended entirely upon the few landowners for survival. In this system of serfdom, peasants could be traded, punished without due process of law, and made to pay tribute to the lord with labor. When China occupied Tibet, all those serfs were freed just like they were throughout China.

Tibet is part of China. Rural Life in China reported, “A typical family of seven described by Business Week in 2000 lived in a four-room house, used 0.64 of an acre for growing rice, used 0.59 an acre for growing other crops and owned four pigs, one horse, and 20 ducks. Their expenditures were $546: $217 for food, $96 for transportation, $72 for fertilizer and pesticides, $48 for medicine, medical services, $36 for local taxes; $7 for road building and improvement; $4 for power station maintenance; $6 for education and culture and $60 for cloth and clothes.”

Did you notice there was no mention of rent or a mortgage payment? My mortgage payment in the United States is almost 38 percent of my income and a friend and his family of three pay more in rent for less space in the same area. But in urban China,, renting or owning a home is not free. Tibet is mostly a rural area of China.

“Since 2006, the Tibetan government has mandated that Tibetan farmers, herders, and nomads use government subsidies to build new homes closer to roads. New concrete homes with traditional Tibetan decorations dot the stark brown countryside. But the base government subsidy for building the new homes is usually $1,500 per household, far short of the total needed. Families have generally had to take out multiple times that amount in interest-free three-year loans from state banks as well as private loans from relatives or friends.” [Source: Edward Wong, New York Times, July 24, 2010]”

Even the lives of Tibetan Nomads that makeup about a quarter of the population is changing. “Tibetan nomads have a lot in common with Mongolian nomads. Tibetan nomad culture is quickly disappearing as more Tibetans each year are being relocated off of the grasslands.”  But that might have more to do with climate change.

Nature.com reports, “A comprehensive environmental assessment of the Plateau of Tibet has found that the region is getting hotter, wetter and more polluted, threatening its fragile ecosystems and those who rely on them.

The plateau and its surrounding mountains cover 5 million square kilometers and hold the largest stock of ice outside the Arctic and Antarctic; the region is thus often referred to as the Third Pole. And like the actual poles, it is increasingly feeling the effects of climate change, but rapid development is putting it doubly at risk and is also changing lifestyle choices.

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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The Most Popular Drink in the World originated in China and was stolen by the British

June 12, 2018

Tea is the most popular drink in the world second only to water. Its consumption equals all other manufactured drinks combined including coffee, chocolate, soft drinks, and alcohol, and China is still the leading tea producer in the world.

If you are interested in a real-life collision between the West and China early in the 19th century, I highly recommend reading Sarah Rose’s heavily researched nonfiction book For All the Tea in China: How England Stole the World’s Favorite Drink and Changed History.

In this book, you will discover that the British Empire and its merchants were successful, because they were more ruthless and devious than anyone else on Earth. When China’s last Dynasty collided with the British Empire, the Qing Emperors probably had no idea who they were dealing with.

The British Empire was the largest in history, and it covered more than thirteen-million square miles (20,921,472 square kilometers), which is about a quarter of the Earth’s total land area, and it controlled more than 500 million people, a quarter of the world’s population at the time.

What financed the brutal expansion of this empire?  In the 19th century the British Empire was not only a thief, but the largest drug cartel in human history. After all, it was the British that forced Opium on China and fought two Opium Wars to make that happen. How do you think the British paid for the expansion of their empire?

The real-life main character in Sara Rose’s fascinating, true, fact-based story is Robert Fortune (1812 – 1880) who successfully pulled off one of, if not the largest, act of corporate espionage and theft in history. This nonfiction book is about how the British stole tea plants and the method of producing tea from China and successfully transplanted this industry in India where the British were also growing the opium they were selling to the Chinese.

If you drink Darjeeling Tea from India, you are drinking a product that was stolen from China by Robert Fortune in the early half of the 19th century.

But there is much more to this story than the theft of tea from the country that has the earliest records of tea drinking dating back to the first millennium BCE, because this nonfiction book reads like a spy thriller. If caught, Fortune would have been executed by the Chinese. To pull off the biggest heist of all time, he disguised himself as Chinese and traveled to areas of China that no foreigner had ever visited before, and his only companions were Chinese that he had bribed to work for him.

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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China was the Most Innovative Country in the World for Fifteen Hundred Years: Part 3 of 3

May 10, 2018

Another Chinese inventor during the Song Dynasty created a machine known as the Cosmic Engine, the ancient world’s astronomical computer.

Su Song was the inventor.  The Cosmic Engine was so complicated that for centuries no one (even Westerners) understood how it worked. Today, few westerners know that it existed.

However, records show that the Cosmic Engine was created in 1092 AD.

The Cosmic Engine calculated time—not just hours and minutes but weeks, months and seasons reflecting how the earth moves around the sun. It also calculated how the earth and planets moved through space.

The Cosmic Engine was five stories tall and its working innards were complex.

Today, we know exactly how this device was created since Su Song left detailed blueprints and directions describing how it was built. Song’s Cosmic Engine worked from the eleventh century until enemies of the Song Dynasty destroyed it.

Using Song’s blueprints, the Science and Technology Museum in Beijing built a fully accurate reconstruction. Another reconstruction exists in London.

This ingenious device led to the invention of Western clocks hundreds of years later, and we now know that many of the inventions and discoveries the modern world was built on originated in ancient Imperial China.

The Confucian method of meritocracy was (and still is) the engine that led to the creation of all of the Chinese innovations mentioned in this series of posts and this is only a sample.

The Chinese system of meritocracy then and now makes it impossible that anyone as weak or ignorant as George W. Bush or Donald Trump could ever come close to a position of top leadership.

Return to Part 2 or start with Part 1

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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China was the Most Innovative Country in the World for Fifteen Hundred Years: Part 2 of 3

May 9, 2018

Modern ironworkers of today use the same method that ancient Chinese did, but today there is automation and we use electrical air pumps to feed the fire.

How did the ancient Chinese develop a method to drive enough air into a furnace to heat it to the necessary high temperatures? The Chinese used water to drive the bellows for a blast furnace. With these inventions, the groundwork was laid for other sophisticated machinery used in mass production.

One such invention in ancient China was an odometer designed to measure distance.  This device was known as the rangefinder chariot. A cart that was rolling along with troops measured every five hundred meters by banging a drum automatically.

This device was used to measure the distance to enemy camps and measure how far the troops had marched from a royal city.

What is amazing about this ancient odometer is that the gears match exactly those found in modern motorcycle engines.

There is also evidence of the application of gear engineering in eastern China on a massive industrial scale during the Song Dynasty (960 – 1276 AD).

We now know that the Chinese had huge factories capable of mass production.

Another ancient machine recently discovered is the hydraulic trip hammer and it is believed to have been developed two millennia ago. The texts from that time tell us that the huge machine was used to crush grain but also to pound metal the same way metal is still developed today.

The ancient Chinese then invented a more efficient way to grind grain-using millstones. However, the Chinese took this machine to an advanced level known as a multiple geared gristmill, which was also powered by water.

Nearly a thousand years later, the industrial revolution started in England.

Part 3 continues on May 10, 2018, or return to Part 1

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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China was the Most Innovative Country in the World for Fifteen Hundred Years: Part 1 of 3

May 8, 2018

It is a common assumption (a guess) in the West that Europe and The United States invented the machines that power our modern lifestyles.

However, new discoveries from ancient China are forcing us to rewrite history.

While Europe was mired in the so-called dark ages, ancient China ruled supreme as the world’s technological super power, and we are discovering that many of the inventions that have shaped our modern world had their beginning in ancient China.

There were complex geared machines that allowed production on an industrial scale such as precision seismographs that detected earthquakes, drilling machines that bored for natural gas hundreds of meters beneath the earth, or a super-scale Cosmic Engine that not only told the time but also predicted the passages of the planets and the stars.

Some of these technologies were so complex, they remained a mystery for centuries.

Two thousand year old books show in detail things that are still needed today.

Another discovery from ancient China was drilling for oil. We assumed it was modern engineers that developed oil-drilling techniques. It wasn’t. They improved the techniques but did not invent the method.

History Lines.net reports, “The Chinese have used oil and gas for many centuries. There is no record of when Chinese began using natural gas, but clearly in Szechuan the local people were drilling down hundreds of feet into the earth to get natural gas and brine before the start of the Han Dynasty, before 400 B.C. The Chinese used bamboo pipelines to carry natural gas and mix it with air to yield a usable source of fuel for fires. … By the first century B.C., the technology of well-drilling had advanced, and Chinese engineers were able to dig down over 800 feet …”

During the Song Dynasty, China’s innovations reached their peak. Inventers and engineers were creating machines that wouldn’t be seen in the West for another thousand years.

Part 2 continues on May 9, 2018

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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To Get Around, take the Bullet Trains and Use the Subways in China

July 26, 2017

Believe me when I suggest avoiding driving or taking a taxi in Beijing unless it is midnight and the city is sort-of sleeping. Beijing is one of the worst cities in the world to drive in. This is probably true for most of China’s crowded cities.

To give you an idea of what I mean by crowded, New York City has a population of about 8.5 million and is ranked #1 in the United States with Los Angeles #2 with less than 4 million people. There are 160 cities in China with a population of over 1 million vs only 10 in the United States.

Here are China’s top five cities ranked by population.

Shanghai – 22 million

Beijing – 10 million

Guangzhou – 11 million

Tianjin – 11 million

Shenzhen – 10 million

I have been to Shanghai and Beijing several times between 1999 – 2008, and have been stuck in Beijing traffic breathing toxic fumes and watching the taxi’s meter adding numbers to the cost of the trip when we could have walked faster for free.

The other choice is Beijing’s subway system built for the 2008 Beijing Olympics (and it’s still expanding), which I prefer using. It’s fast and efficient, but wear a money belt because it can become sardine-can crowded creating a perfect environment for pickpockets. I didn’t even wear my backpack on my back. I put it on my chest where I could keep an eye on it. To be fair, Smarter Travel.com warns us of the dangers of pickpockets in New York City. The same advice will help in any major city you visit.


This video was filmed in 2013 when only one subway line was open. Today, Xian has three subway lines with sixty-six stations and an average of 1.5 million people riding the subway daily. Last time I was in Xian in 2008, the subway system was still under construction.

Then there is China’s high-speed rail. It didn’t exist in 2008, and I haven’t been back to China since. Why fly when you can see China from a bullet train moving at 120 – 160 mph (or faster). The Economist reports, “Less than a decade ago China had yet to connect any of its cities by bullet train. Today, it has 20,000km (12,500 miles) of high-speed rail lines, more than the rest of the world combined. It is planning to lay another 15,000km by 2025.”


“China’s high speed trains make travelling the country easy and quick but there are certain things you should know that’ll make using the high speed trains in China a painless process!” – Learn how to ride high-speed rail in China from The Adventurer

Then Manufacturing.net asks, “Why is There No High-Speed Rail Network in America?”

Here is the simple answer. Since World War II, the U.S. has spent about $33-Trillion on its military budgets and fighting endless wars in Korea, Vietnam, Iraq, and Afghanistan causing millions to be killed and/or maimed. Without those wars, there would probably be no ISIS. Then there is the fact that since President Reagan in the 1980s, the focus in the United States has been on cutting taxes mostly for corporations and the wealthiest Americans. That has led to about $20 trillion in debt for the federal government. During this time, the U.S. has not kept its infrastructure up-to-date – improvements that would have provided millions of new jobs and benefited the American people.

If the United States had avoided starting so many wars and had a military budget equal to China (ranked #2 in the world), it would have saved about $32-Trillion since World War II. There would be no national debt and the U.S. might even have its own bullet trains speeding from coast to coast.

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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