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The important american midterm elections for house and senate is just a day away. Due to the dire circumstances of the countrys economy the election is even more intense than usual. Although a portion of the voters have become increasingly apathic the politicians are now more than ever going to great lengths to get votes. American election are already quite “nasty” by european standards. Mud throwing and sometimes even slander is not at all unheard of. The lastest invention in so called “negative” ads are using China as a scapegoat for all of Americas woes.

The follwing ad was run by an Ohio congressman who accused his republication opponent of supporting free trade. Zack Spaces analysis is that free trade increases the chinese standard of living, implicitly at the expense of amercians. A second statement is made that american is losing thousands of jobs due to “unfair” trade agreement like NAFTA. NAFTA is, however, not related to China, but to north america.
The Video closes with giant chinese dragon saying “Xie Xie Mr. Gibbs!”, the name of Zack Spaces opponent.

But this kind of ad is far from the lone swallow. This ad features almost only the ad runners opponents, stading behind waving chinese flags with chinese music in the background. To spice things up Obama is thrown into the pot as well, so as to create the ultimate horror scenario.

There are plenty more examples of China related negative advertising. More videos can be fond in the bottom of this article.

A growing issue
The economic questions of China, outsourcing and trade deficit is now more relevant than ever. The amcerican trade deficit remains sky high as does domestic unemployment. Advocates of free trade might say that Americans are just being sore losers – but the issue is muddied due to tax breaks. According to many of the ads American companies have been recieving tax break for shipping jobs overseas. The more precise story is that American companies are allowed to defer tax payments on income earned in foreign subsidiaries until the income is “taken home”. However, many companies choose to reinvest the earning in foreign operations rather than take the income home for taxation in America.

The democrats tried to repeal the law, but it was unsuccessful since 5 democrats as well as all republicans voted against the measure. On the other hand republicaitons have claimed that Obamas stimulus package helped create jobs in China instead of america.  Repealing the tax deferral law might increase tax revenues and stem outsourcing in the short run, but it would come at the future cost of competitiveness in regard to multinational companies.
It is unlikely that ordinary American have made any of the above considerations nor are they are expected to.

Faltering self-confidence

The most telling of all the chinese related is the above one. This particular video isnt realted to the midterm elections although it is indeed political.
Just ten years ago the scenario present would most likely have been rejected as outright ridiculous. Although the video is clearly an exaggeration it must still have a hint of truth in it to have any kind of impact. The organization that paid for the ad must have thought so.

But still it is a sign over an overall decline in americans self confirdence.  The good old “america number one” days seem far away at the present moment.  A broad mass of individuals ranging from lefttists, bloggers to more serious finacial analysts and political scientists have long predicted the end of the united states. The overall tone in presented in the election videos suggests that China is “stealing” american jobs, and thereby wealth. Although the individual who suddenly finds that he job has been moved to China must feel bitter – economic develop isnt a zero-sum game. The rise of China generally does not, in absolute terms,  make america worse off. Relatively america might come off as “less rich” because China is becoming increasingly “less poor”.

Howbeit, there is thing thing which can only be measued relatively – and that is power! No matter how rich the world overall becomes, there can still only be so many superpowers.  As one country becomes more powerful it is always at the expense of another country. Power is a zero-sum game.

The future of the “tax breaks” that are belived to increase outsourcing is unlikely to disappear anytime soon. The Republicans seem likely to overtake at least one of the two chambers, so unless the GOP changes its politics towards the tax deffferals – it looks as if it is there to stay.

If the China-hostile rethorics is purely an election tactics or we are seeing a swing towards more general scare trend akin to the communist “red scare” of the 1950 is yet to be seen. However, this rhetorics has is reminiscent of the 1980ties in regards to Japan and the 1990 in regards to Mexico.  Maybe China is just Americas new villain-of-the-decade?

More anti-China midterm election videos

http://www.youtube.com/watch?v=y9gqUiO1NrY

http://www.youtube.com/user/BarbaraBoxer#p/u/7/Ak4CucL-jUE

http://www.youtube.com/watch?v=_kaiiJuz8a0&feature=player_embedded