Wal-Mart said that last year it had imported more then $18 Billion in inventory from China. This was keeping with an annual growth rate of 20% if that continues, 2005 will be more then $24 Billion.
In regards to China, Wal-Mart is there 8th largest trading partner. Wal-Mart is more important trading partner then Russia, Australia and Canada to China. This shows a tremendous amount of growth in this trade since Wal-Mart entered China in 1996.
What has this done to the US; well this quote is from USINFO.STATE.GOV web site.
“A new study has found that the United States' growing trade deficit with China has had an increasingly negative impact on the U.S. economy, causing job losses that reach into the most technologically advanced industries in the manufacturing sector and affect every state “.
This study goes on to say that in a period between 1989 and 2003 that 1.5 million jobs have been lost to Chinese competition. At the same time the trade deficit with China increased from $6.2 Billion to $150 Billion in 2004. Wal-Mart accounts for 12% of that deficit.
An important point in this study is that imports of sophisticated electronics and communication equipment from China is growing faster then imports of low-value labor-intensive products. This shows that the United States has started to export higher skill and wage jobs to China.
It is looking like Wal-Mart marketing plan is to drive jobs oversea and thus lower the earnings of the average American so that the only place they can afford to shop at will be Wal-Mart. If the Chinese want wage war on the US they do not need an Army just Wal-Mart.
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