The U.S. Congress is considering legislation that would treat what lawmakers call China’s undervalued yuan currency as an export subsidy, a step that would give the U.S. Commerce Department increased ability to slap duties on Chinese goods.
The U.S. House of Representatives is expected to pass the bill this week, but its future in the Senate is uncertain.
“If we take this additional step, it’s going to continue this downward spiral,” Tim Stratford, a former U.S. trade official who was part of a delegation visiting Washington from the American Chamber of Commerce in Shanghai, told reporters.
This time at least there is a balanced look at the story, maybe even leaning toward criticism of the legislation. One story told there is about how China retaliated when Obama placed tariffs on Chinese tires last year. China placed tariffs on American chicken parts and a few US firms lost loads of money.
My mind always turns to the benefits of importing lower priced goods. Not only does that allow people to save or to buy more, it increases demand for all kinds of other goods and services. That can mean more jobs in other industries, more profits, and a better standard of living.
China is accused of attracting more customers by keeping the value of their currency artificially low. We should be thanking them for that.