AssassinsMace
Lieutenant General
The US is not going to outright lift the arms embargo. Like I mentioned before Obama has called for a review of trade restrictions to other countries. What you'll probably see is some items considered dual-use will be easier to sell to China. Anything with a solely military purpose will continued to be restricted.
The story about how advanced 5-axis machine tools could not be sold to China and how now Chinese produce them at half the cost killing US sales is probably a reality check. China is probably the only unsaturated market for high price ticket items produced by developed nations. And with this recession and China continuing to bust the myths making the developed world feel comfortable once, it doesn't look good for their trade interests.
The story about how advanced 5-axis machine tools could not be sold to China and how now Chinese produce them at half the cost killing US sales is probably a reality check. China is probably the only unsaturated market for high price ticket items produced by developed nations. And with this recession and China continuing to bust the myths making the developed world feel comfortable once, it doesn't look good for their trade interests.