Asian Nations’ Trade Surpluses

It appears as if Tom Plate has been captured by the rhetoric of America’s Asian friends. “A ‘Hit ‘Em While They’re Down’ Policy” (Commentary, Oct. 14) presents a misleading view of the weakness of the north Asian economies and implies that America should never be critical of their mercantilist economic policies.

Reasoned complaints by senior U.S. officials such as Robert Rubin, Charlene Barshefsky and William Daley about the long-standing mercantilist, protectionist trade policies of Japan, Korea and China are always appropriate and should not be labeled as “bashing.” None of these economies are in a Thailand-like state of crisis-bankruptcy.

China’s economy is booming; Japan is not “teetering on the brink of another recession”--it is expected to grow at the same rate as the U.S. in 1998. Korea is not “struggling to escape a serious economic downturn”--it is growing at twice the U.S. rate.

The mission of America’s Pacific Rim commentators should be to quietly, persistently demand that our Asian friends move toward reciprocating the openness of the U.S. marketplace--if they want to continue to enjoy most-favored-nation access to the U.S. marketplace. The fact that Japan, and to a much lesser extent China, purchase U.S. financial assets with their mercantilist-gained surpluses is no reason to applaud or excuse their protectionist practices. It is much better for U.S. firms to earn revenue via export sales (and to pay increased taxes) than for the U.S. to borrow from nations who protect their markets in order to earn financial surpluses.

RICHARD DROBNICK

Vice Provost for

International Affairs, USC