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It would take a while to get production of all the “crap” going in other countries. In the mean time the hits to our production (need those Chinese made parts), and commerce with the already weakening economy would push us over the edge.

Would it have a big, bad impact on the people of China? Sure. Does it’s Communist government give a rip about the people? Nope. If it was a temporary export halt they would just let the people suffer through it and say it was for the good of China. Remember that all this new “openness” came about because their Communist government was on the verge of collapse just like the Russians and they smartly decided to open things up some just to survive. It is still nowhere near a free market there, much less a free society.

I’m not saying I know this will happen. I’m just an idiot sitting in a cube, what do I know. But as a worst-case scenario this could be really bad and I think way too much trust has been put in Communist dictators to do the right thing with our investments.

why would China do that? Countries act (or try to act) in their own interest. China will make every effort to maximize their gains economically, without changing status quo relationships. So far things are working in their favour, but it isn’t clear how they would continue to progress without trading partners. Rather than abandon US automakers, China is likely to (attempt to) take a stake in them.

As a free trading nation, by the time US shuts boarders to Chinese goods (ie a high tariff wall), a distinct possibility in a protracted downturn, the rest of the world will have already shut their doors to China. I suspect China will increasingly play by the rules, in order to maintain the advantages they have already achieved. Also to maintain global economic stability.

Any meltdown in the US looks to be the result of made in USA political, economic, and business decisions. These are sad times.

I’m not seeing it that way. There are plenty of countries who can take China’s place in producing low cost crap that Americans will buy at Walmart and other Dollar stores. They are in the same position as China is, economically and product-quality-wise, that companies from the US will be over there (if they haven’t already been) making sure they can produce the product at a price point that rivals China.

As for the cars, there are also plenty of Americans who would not have a problem giving them a chance, especially if the dealerships can supply financing for anyone with a pulse. For the Chinese producers, the US market is potentially lucrative and they will spend a bunch upfront (possibly, but maybe not, with government financial support) to get the business going. Yes, they will have to overcome the quality perception issue, but Americans don’t have a problem giving the new guy in town their support (remember Hugo and the even Kia and Hyundai when they first started out).

What happens to GM (or Ford, Chryslerubus, Honda, Toyota, etc) when their Chinese overlord partner tells them to go jump in a creek? Take out the Chinese profits, write off that physical investment, and how do GM’s financials look?

The Chinese are going to make a major attack on the U.S. But not using their military, using our own economy against us. Any of you macro-economic guys want to predict what happens when the Chinese government gives 100% ownership to the Chinese partners not only in auto, but every other industry? And declares “no more exports to the U.S.”? A total economic melt-down in the U.S.