The Outsourcing Threat

Chi Lo

Chapter 3 in Phantom of the China Economic Threat, 2006, pp 41-60 from Palgrave Macmillan

Abstract: Abstract The fear about the China economic threat has led many opportunists and politicians to jump on the China-bashing bandwagon. The blame game has revived protectionist sentiment. The most notable example is the hot debate on the damage of cross-border outsourcing on the US economy, especially in the run-up to the US presidential election in 2004. Though the debate was misguided by pre-election rhetoric, it may have a profound impact on shifting America’s free trade attitude. With weakening globalisation momentum, the negative sentiment towards free trade does raise the risk of protectionism that will hurt Asia. Arguably, such a risk is more imminent and real than the perceived China threat to the global economy.

Keywords: Free Trade; Trade Balance; Current Account Deficit; Asian Economy; Trade Sector (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-62629-4_3

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DOI: 10.1057/9780230626294_3

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