Is China good for us, California?

On May 9, 2007, at the Mark Hopkins Hotel in San Francisco, a delegation of Chinese business leaders from more than 200 Chinese companies kicked off their visit to the U.S. by signing contracts committing them to buy more than $3 billion worth of California-produced high technology products. This company include Oracle, Cisco, Qualcomm, HP, Lam Research, KLA Tencor, Variant, Applied Materials, Paramount forms and few others.

We have a huge trade deficit against China. This is a little gift of doing so. Our (California) export to China is 10B compare to 5.5B in 2003. Last year they have a record surplus. They want US economy in good shape, to make sure that, they make both Consumer and Corporate America happy. Consumer sentiment they control using Treasury they buy enough to keep rate low; and Corporate by doing business and buying products.

The growth of the economy of the People's Republic of China has been remarkable. By the end of 2008, China is predicted (measured by exchange rate) to overtake Germany as the third largest economy. China's global trade exceeded $1.758 trillion at the end of 2006.

This is good for Govt. and people of California, at it reduce the tax liabilities to certain extnent.