Another Balanced Perspective on China

The Federal Reserve Bank of Cleveland released a thoughtful analysis of the Chinese trade situation and its implications for U.S. economic growth.

Bottom line: China's growth cuts both ways in helping and hurting the U.S. economy. Many U.S. companies see China as a major market opportunity and therefore will benefit by getting involved there. We get hurt, especially in the low-skilled production area because China is capturing many of these investments, and yes, there is a job price to pay for these losses to American workers.

The Fed article urges a balanced overall perspective of China in the changing global economy. And the article echoes the view by Economy.com--the sky is not falling, Chicken Little.

Download the article here.