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<p class=MsoNormal><font size=4 color=navy face="Trebuchet MS"><span
style='font-size:14.0pt;font-family:"Trebuchet MS";color:navy'><a
href="http://www.seeingtheforest.com/archives/2010/03/chinese_currenc_2.htm">Chinese
Currency Manipulation Is Just One Piece</a><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>by Dave Johnson,
March 30, 2010<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>This post
originally appeared at <a href="http://www.ourfuture.org/">Campaign for
America's Future</a> (CAF) at their <a href="http://www.ourfuture.org/blog">Blog
for OurFuture</a> as part of the <a
href="http://www.ourfuture.org/economy/makingitinamerica">Making It In America</a>
project.<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:7.5pt;
line-height:150%;background:white'><font size=2 color=black face="Trebuchet MS"><span
style='font-size:10.0pt;line-height:150%;font-family:"Trebuchet MS";color:black'>I've
been focusing on the Chinese currency manipulation problem because the Obama
administration is supposed to make it's 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.<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:7.5pt;
line-height:150%;background:white'><font size=2 color=black face="Trebuchet MS"><span
style='font-size:10.0pt;line-height:150%;font-family:"Trebuchet MS";color:black'><a
href="http://www.ourfuture.org/blog-entry/2010031223/find-out-how-many-jobs-have-been-lost-china-where-you-live">In
a post the other day</a> I listed <strong><b><font face="Trebuchet MS"><span
style='font-family:"Trebuchet MS"'>the main unfair advantages <st1:place w:st="on"><st1:country-region
w:st="on">China</st1:country-region></st1:place> uses to its advantage:</span></font></b></strong><br>
1) Currency manipulation. <st1:country-region w:st="on">China</st1:country-region>
"pegs" its currency at a very low, or "weak" rate, so goods
from <st1:place w:st="on"><st1:country-region w:st="on">China</st1:country-region></st1:place>
cost up to 40% less than they otherwise should.<br>
2) Labor-rights suppression has lowered manufacturing wages of Chinese workers
by 47% to 86%.<br>
3) There is massive direct government subsidization of export production in
many key industries.<br>
4) <st1:place w:st="on"><st1:country-region w:st="on">China</st1:country-region></st1:place>
allows environmental degradation that ends up affecting all of us.<br>
5) Intellectual property theft and piracy mean that American products that
could be sold are stolen instead.<br>
6) <st1:country-region w:st="on">China</st1:country-region> has a number of
policies that block <st1:place w:st="on"><st1:country-region w:st="on">U.S.</st1:country-region></st1:place>
firms from market access.<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:7.5pt;
line-height:150%;background:white'><font size=2 color=black face="Trebuchet MS"><span
style='font-size:10.0pt;line-height:150%;font-family:"Trebuchet MS";color:black'>It
is necessary to bring their currency to market rates, but this is not all that
must be done to bring trade into balance. It helps, it doesn’t fix it.<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:7.5pt;
line-height:150%;background:white'><strong><b><font size=2 color=black
face="Trebuchet MS"><span style='font-size:10.0pt;line-height:150%;font-family:
"Trebuchet MS";color:black'>All of these things that <st1:place w:st="on"><st1:country-region
w:st="on">China</st1:country-region></st1:place> is doing are collectively
called a national industrial policy.</span></font></b></strong><font size=2
color=black face="Trebuchet MS"><span style='font-size:10.0pt;line-height:150%;
font-family:"Trebuchet MS";color:black'> <st1:place w:st="on"><st1:country-region
w:st="on">China</st1:country-region></st1:place> has one. We don't. <st1:place
w:st="on"><st1:country-region w:st="on">China</st1:country-region></st1:place>'s
share of the world's business has grown exponentially because they have and
follow a national industrial policy. Ours has declined dramatically because we
don't. I'm trying to drop a hint here, but for those in Washington who aren't
following let me spell it out more clearly: <st1:place w:st="on"><st1:country-region
w:st="on"><strong><b><font face="Trebuchet MS"><span style='font-family:"Trebuchet MS"'>America</span></font></b></strong></st1:country-region></st1:place><strong><b><font
face="Trebuchet MS"><span style='font-family:"Trebuchet MS"'> needs to develop
and follow a national industrial policy</span></font></b></strong>.<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:7.5pt;
line-height:150%;background:white'><font size=2 color=black face="Trebuchet MS"><span
style='font-size:10.0pt;line-height:150%;font-family:"Trebuchet MS";color:black'>One
more thing, Senators Graham and Schumer have introduced a bill, <a
href="http://thomas.loc.gov/cgi-bin/bdquery/z?d109:s.00295:">S. 295</a>, that
will "level the playing field" with <st1:place w:st="on"><st1:country-region
w:st="on">China</st1:country-region></st1:place>.<o:p></o:p></span></font></p>
<p class=MsoNormal style='line-height:150%;background:#EEEEEE'><font size=2
color=black face="Trebuchet MS"><span style='font-size:10.0pt;line-height:150%;
font-family:"Trebuchet MS";color:black'><a
href="http://schumer.senate.gov/new_website/record.cfm?id=260959">Specifically</a>,
the amendment allows for a 180 day negotiation period between the US and China
to revalue its currency, if the negotiations are not successful, a temporary
across the board tariff of 27.5% will be applied to all Chinese products
entering the United States - a penalty that corresponds to their estimated currency
advantage.<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:7.5pt;
line-height:150%;background:white'><strong><b><font size=2 color=black
face="Trebuchet MS"><span style='font-size:10.0pt;line-height:150%;font-family:
"Trebuchet MS";color:black'>It's time to call the President and your member of
Congress</span></font></b></strong><font size=2 color=black face="Trebuchet MS"><span
style='font-size:10.0pt;line-height:150%;font-family:"Trebuchet MS";color:black'>,
and tell them to let the Treasury Department know that they need to declare <st1:place
w:st="on"><st1:country-region w:st="on">China</st1:country-region></st1:place>
a currency manipulator. And ask them to support the Graham-Schumer bill. <o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:7.5pt;
line-height:150%;background:white'><font size=2 color=black face="Trebuchet MS"><span
style='font-size:10.0pt;line-height:150%;font-family:"Trebuchet MS";color:black'>When
you call, you can use info from this <a
href="http://www.epi.org/publications/entry/bp260/">report by The Alliance for
American Manufacturing and Economic Policy Institute</a> titled, “Unfair
China Trade Costs Local Jobs.” Accompanying the report is <a
href="http://www.americanmanufacturing.org/china-job-loss/">a website with an
interactive map</a> that shows job losses to by state and Congressional
District:<o:p></o:p></span></font></p>
<p class=MsoNormal align=center style='text-align:center;background:white'><font
size=2 color=black face="Trebuchet MS"><span style='font-size:10.0pt;
font-family:"Trebuchet MS";color:black'><a
href="http://www.americanmanufacturing.org/china-job-loss/"><span
style='text-decoration:none'><img border=0 width=250 height=145
id="_x0000_i1025" src="cid:image001.jpg@01CAD0BF.33E2C130" alt="AAM_Map"></span></a><o:p></o:p></span></font></p>
<p class=MsoNormal align=center style='text-align:center;background:white'><font
size=2 color=black face="Trebuchet MS"><span style='font-size:10.0pt;
font-family:"Trebuchet MS";color:black'>Click the map.<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:7.5pt;
line-height:150%;background:white'><font size=2 color=black face="Trebuchet MS"><span
style='font-size:10.0pt;line-height:150%;font-family:"Trebuchet MS";color:black'>Also,
look at CAF's breakout page on the <st1:country-region w:st="on">China</st1:country-region>
trade problem: <a
href="http://www.ourfuture.org/features/china-currency-showdown">On Jobs, China
Has Us In The Red</a><o:p></o:p></span></font></p>
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