United States Trade versus China 2012, a unique economic report that examines the challenges that face America. iHuman Evolution, the premier business website and ecommerce social media developer, writes a compelling case that details key industries such as solar panel manufacturing, energy, clean water, agriculture, mobile technologies, and healthcare. Read the full report under the News Events section visit www.iHumanEvolution.com

1. U.S. Trade War versus China Inevitable 2012
Today, President Obama announced support of tariffs on imports Chinese solar panel technologies to America. This news
was received with cheers at the Oregon based SolarWorld Ag plant that employs over 1,000 workers. The Obama
administration’s latest shift to a more protectionist U.S. trade policy seems to be accelerating as the economy remains
stagnate. Data shows the U.S. trade deficit has increased significantly over the past several years. The latest official
measurement shows that for the month of January 2012; the U.S. trade deficit grew to $52.6 billion (goods and service).
China has taken aggressive steps to provide the Yuan as an alternative currency to the USD. Although, technology will be
able to solve many of the issues brought on by the global population explosion, it cannot dissipate the human drive for
control and power. This will require a collaborative understanding among nations to maintain the delicate balance of peace.
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Most recently, the China Development Bank took the lead in signing key agreements with BRIC nations (India, Brazil, South
Africa, Russia and Singapore) to provide renminbi loans and extend loans in BRIC’s respective currency. By 2015, China
plans to offer the Yuan as a freely convertible currency. In 2011, China led the world by exporting over $1.89 trillion worth
of commodities. It should come as no surprise then as China begins its massive shift out of USD into other investments. The
question remains who will pick up the abundance of dollars that have flooded the market. Japan is unable to buy the excess
dollars due to their severe economic debt problems and aging population issues says James Rickman 3rd, Director iHuman
Evolution.
China is using its manufacturing base to establish true value in the marketplace. For several years, China has stock piled
enough reserves of raw materials such as valuable rare earth metals that are critical components to manufacture electric
cars and mobile devices battery storage and oil energy contracts including (Sudan, Iraq, Canada, Kazakhstan, Russia, South
America, Afghanistan). Following its plan, China has paid for these strategic natural resources in their own currency
together with enough reserves of gold, silver and precious metals (Australia, U.S., Canada, China, Africa) to enable them to
dump the US Dollar and take the loss in value of their US treasuries ($1.2 trillion) as less than the gain in value of China’s
precious metals reserves. By 2015, the global oil supply will see a shortfall of 10 million barrels per day. Read Oil Output
Report
Looking back at the oil crisis of 1973 and 1979 in America, the cost of oil skyrocketed while the value of the U.S. dollar
dropped causing massive inflation. Today, we find the same conditions brewing even worse however now if you combine
this with U.S. $15 trillion debt, high unemployment and Middle East unrest. The U.S. economy seems to be staggering along
at weak 2 – 3 percent GDP growth rates that are not sufficient to lead us out of this recession. As a result the likelihood

2. remains that significant inflationary conditions may occur due to the inevitable need by the Federal Reserve to raise
interest rates in order to begin addressing the U.S. debt. The FED cannot prop up the U.S. economy forever.
Don't expect precious metals prices to spike and then tumble again. China needs precious metals prices to rise and stay
there so they can have a viable reserve currency coming together at the same time. The wealth of the Chinese people is
increasing significantly due to their high rate of savings per capita much of it in precious metals and commodities. Today,
we are seeing China has already put the key elements in place for its global rise to power and leadership position equal to
that of the United States. Based on an 8% annual growth rate by 2025, it is calculated that China’s gross domestic product
will reach over $14 trillion equal to that of the United States.
Below are the most recent figures in U.S. trade with key regions.
 The goods deficit with Canada increased from $3.9 billion in December to $4.8 billion in January 2012. Exports
decreased $0.7 billion (primarily computer and automobiles, parts, and accessories) to $22.0 billion, while imports
increased $0.2 billion (primarily crude oil and automotive parts and accessories) to $26.8 billion.
 The goods deficit with China increased from $23.1 billion in December to $26.0 billion in January 2012. Exports
decreased $1.3 billion (primarily civilian aircraft, engines, equipment, and parts and passenger cars) to $8.4 billion,
while imports increased $1.6 billion (primarily footwear and apparel) to $34.4 billion.
 The goods deficit with European Union decreased from $9.6 billion in December to $8.5 billion in January 2012.
Exports decreased $1.7 billion (primarily civilian aircraft, engines, equipment, and parts and fuel oil) to $21.1 billion,
while imports decreased $2.8 billion (primarily passenger cars and civilian aircraft) to $29.6 billion.
How important is our balance in trade policy and what impact does it have on a local economy?
Let’s take for example, a state like Oregon that declares for every $1 billion in new exports it creates 5,400 jobs. Most
recently, Portland Oregon business leaders have launched an aggressive plan to promote their products and services
overseas. Oregon governor, John Kitzhaber has been instrument in leading this business development charge to increase
exports to Asia. Recent data shows Oregon companies' sales abroad increased 18.5% for 2010 and 4.5% in the first 10
months of 2011. China remains Oregon's leading foreign customer, with total purchases of $4.1 billion in 2010, a 1,300
percent increase since 2000.
Oregon offers export opportunities from major shipping down the Columbia and Willamette rivers and their access to the
Pacific Ocean. Oregon high tech companies like Intel, SolarWorld, Microsoft and ClearEdge Power employee tens of
thousands of Oregonians. Major apparel companies like Columbia Sportswear and NIKE are headquartered in Oregon. The
state has abundant forestry lumber, cattle and agriculture resources that make it an attractive trading partner to overseas
markets. In fact, Oregon holds the largest North American reserve of clean water under its Cascade mountain range. While
places like Asia and even California have serious shortfall of clean water resources.
If a U.S. trade war with China heats up it will impact states like Oregon which have close ties to Asia, particularly in
renewable energy. It is unclear what effect such a trade war would have but the mere psychological impact on financial
markets worldwide could shake investor confidence with a severe retreat in the stock market.

3. For example, many argue tariffs would threaten the steady decline in the cost of solar power, driven in part by competitive
prices, that has sparked the growth in jobs and investment in the American solar energy industry. With the price of solar
modules falling from approximately $2 per watt in 2010 to $1 per watt, currently, the U.S. solar industry added about 7,000
jobs last year, for over 100,000 positions added total. This year, the industry expects to hire an additional 24,000 workers,
making it one of the fastest-growing in the American economy.
However, this progress could wane quickly if tariffs go into effect, raising prices and risking a Chinese trade war. The Brattle
Group, an economic watch dog has reported high tariffs on solar panels would result in the loss of as many as 32,712 jobs
related to the solar industry in 2012, 40,593 by 2013 and 49,589 by 2014.
Locally, a protectionist policy could impact Oregon's solar industry, the eighth largest in the United States, with an
estimated 3,346 jobs at 545 locations. Moreover, China's inevitable trade retaliation could hurt Oregon's other export
oriented industries, from semiconductor equipment to agricultural and timber products.
The question is no longer “if”, the U.S. versus China trade war will happen rather it’s a matter of “when” and “how” it is
occurring. Politically, China must satisfy its exploding population that will add over 450 million middle class consumers by
2022. Worldwide the population will hit eight (8) billion people by 2025 driving the demand for oil, high protein foods,
electricity, medicine and clean water to a level never seen before on Earth.
As the world becomes much more crowded, the competition intensifies for critical resources and power struggles ensue.
It becomes then a question of whether or not the U.S. can rebuild its competitive position in a highly educated
workforce, superior infrastructure, energy independence and tax structure that draws innovative business opportunities,
says James Rickman 3rd, Director iHuman Evolution. It remains to be seen whether the leadership in Washington D.C.
and American voters can get it right; all while the clock is ticking and the country is staggering to find its way through this
historic transformational period.