with all this intrangience coming from china this g-7 meeting, one has to ask what's really the best way to deal with them.
but just as out economy has a trade deficit, they have a green gap. the same way our capital account surplus allowed us to finance a trade deficit, china's green deficit allows them to finance a trade account surplus.
china is growing fast because they're holding their currency low AND destroying their environment. they grow without planning or regard for long-term environmental impact. it's time we stop allowing american retailers and people like jack welch to enable chinese companies to destroy the environment. their pollution and ecological damage have much longer-term costs that they're not including. there's not much we as americans can do about that, but we can control our own companies.
so, we should tax companies by their carbon consumption. we need companies to audit their supply chains as part of their normal tax process. and then they should pay a certain tax, of so many dollars per ton of carbon, etc. this way, even if they buy from other manufacturers it would be covered.