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Barack Obama And Krispy Kreme Want To Get Into China's Business. But What Will China Do?

By Dan Harris and Steve Dickinson

Two things the United States should not be exporting to China right now are our economic mess and our fat-laden diet. Yet, Barack Obama and Krispy Kreme are planning/seeking to do exactly that. In a Wall Street Journal story, entitled, "China-Trade Issue Thrust Into Races as Vote Nears," (h/t to China Journal) Obama makes clear that he believes the United States should be dictating to China what China should be doing with its own economy:

In a letter released Wednesday by the National Council on Textile Organizations, a trade group, the Illinois senator vowed to address industry complaints that China is manipulating its currency to gain a competitive advantage in the global marketplace. Sen. Obama said China's massive trade surplus with the U.S. is a direct result of "manipulation of its currency's value," and stressed "China must change its policies, including its foreign-exchange policies." Sen. Obama said China's economy must rely less on exports and more on domestic demand for growth. He said he "will use all diplomatic means at my disposal to induce China to make these changes."

In a lighter vein (quasi pun intended), Krispy Kreme recently announced plans to open 35 stores in China over the next five years, in Shanghai, Beijing, and Tianjin. Krispy Kreme will do this through its franchisee, the Korean retail conglomerate, The Lotte Group. I am certain China will reject Obama's "diplomatic" attempts to mess up its economy but I make no prediction on how Krispy Kreme will do there. What do you think?

Full post as published by China Law Blog on November 01, 2008 (boomark / email).