With pressure building on the administration to tell the truth on China’s currency manipulation, and a report required by law on April 15, the Chinese government demonstrated just how sophisticated it is about playing U.S. politics. more »
As the manufacturing infrastructure of suppliers, technology knowledge, etc., moves to China, dependence follows. China appears to be ready to answer, "So what are you going to do about it?"
I've been focusing on the Chinese currency manipulation problem because the Obama administration is supposed to make its twice-a-year declaration on this on April 15. But even if this problem is addressed as it needs to be, keep in mind that it is just one piece of the larger problem of Chinese trade policies. more »
The pressure from the huge Chinese currency imbalance shows up in surprising places. Even Chinese CEOs are calling for China to increase the value of its currency to market rates.
China is holding down the value of its currency, which means goods made there cost less everywhere else. This undercuts American companies that make things, so they close factories here and buy from there. This costs us jobs, forces down our wages and savings rate, and forces the country to borrow heavily. This imbalance has built up to a breaking point. more »
Leading economists gathered at an EPI event today to discuss our trade deficit and labor problems caused by our imbalance with China. The conversation centered around how this imbalance can be solved by compelling China to appreciate its currency. more »
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