Daimler Chrysler Will Give Chinese Automaker Chery First American Market Toehold

German owned, Daimler Chrysler AG, has signed an agreement with Chinese automaker Chery for production of small Chinese made subcompacts ro marketed by Chrysler worldwide under either Chrysler or Dodge nameplates. This will a Chinese automaker the first invasion of the American automobile market and likely only worsen the trade deficit with China as higher value goods such as automobiles begin to replace smaller goods as prime imports to the U.S.

High pollution levels as well as safety concerns of some models have slowed the Chinese entry into the U.S. market. But with these issues resolved, China stands to gain a significant share of U.S. automobile sales over time with low priced, high mileage automobiles.

While the trade deficit with China is indeed staggering, China tends to use part of this money to purchase U.S. Treasury Bonds, and now controls $200 billion of these, or the second highest foreign figure next to Japan. This makes both nations vital to preventing out financial collapse as a civilization on hand, but also our financial masters on the other hand.

The loss of manufacturing jobs in the U.S. is simply staggering though. One state, North Carolna, has witnessed 60% of it's lower skilled manifacturing jobs leave to China and other low wage states over the last ten years for example, with most job losses within the last five years. To say the least, this is simply a mounting crisis for the U.S., which is quickly moving to becoming a low wage service job economy.