Posted by: mulrickillion | October 14, 2011

China bashing won’t save US


By Martin Khor, China Daily, Oct 13, 2011 –  Is China’s currency and trade performance a threat to the United States? Or are American politicians using China as a scapegoat for the country’s economic problems?

"China bashing" has been on the rise in the US. It is widely thought that politicians of both parties are doing it to gain popularity in view of the coming elections.

For some years, Congress members have threatened to take action on Chinese imports to retaliate against what they see as China’s manipulation of its currency level. The politicians say that the Chinese yuan is lower than what it should be if there was no government intervention. They charge that the undervalued currency enables China to have a large trade surplus vis-a-vis the US, and that this has caused the loss of American jobs.

These charges are refuted by the Chinese government, which argues that the US trade deficit is due to domestic factors and not Chinese policy. It also points to the 7 percent appreciation of the yuan versus the dollar in recent months.

This issue has been a central economic policy issue between the two major countries. It could escalate into a major battle.

In the first step, the US Senate, on Oct 3, voted 79-19 to allow a week-long debate on the Currency Exchange Rate Oversight Reform Act of 2011. . . .

China bashing won’t save US|Opinion|


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