US still gives “foreign aid” to China – Huh? WTF?

There’s little doubt that China has become a major player in the world economy. While using virtual slave labor to flood the world marketplace with cheap goods, their own markets are all but closed to foreign trade. Foreign companies (including US companies) have packed up and moved to China to take advantage of cheap labor and try to gain a foothold in the Chinese marketplace.

While the Chinese economy has shown signs of weakening in recent months, they are still buying US long term debt and have even offered to bail out the failing EU. So the question of the day is this: Why is the US still sending foreign aid to China? (story here from Investor’s Business Daily)

While Chinese President Hu flaunted his country’s power during his Western tour, his No. 2 economy raked in billions in Western aid. That’s right. We’re still subsidizing China. Why?According to the Organization for Economic Cooperation and Development, foreign aid to China totals $2.6 billion a year. The biggest donor is Japan, followed by Germany, France and Britain, then the U.S. All of these countries, meanwhile, are in debt to China and running massive deficits.

U.S. aid, at $65 million a year, is relatively small thanks to sanctions imposed following Beijing’s 1989 military crackdown on pro-democracy demonstrators at Tiananmen Square. Still, why are we sending China any succor at all?

OK, so $65M a year is chump change when you consider we spend about $50B (that we don’t have) on foreign aid. But why are we giving anything at all to China? Especially when we’re essentially borrowing it from them in the first place. Couldn’t that $65M be better spent, say, on cancer research? With an average tax liability of approximately $10,000 per family, $65M represents the sweat equity of about 6500 US families to pay for this foolishness.

If the government is really serious about cutting spending, here’s a no brainer…

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