At Home in Protectionist America

There are many things I love about the US, but our current approach to trade policy is not one of them. According to an article bylined from Beijing in the Voice of America, "a group of U.S. Senators introduced legislation [last] Wednesday that would punish countries that manipulate their currency for unfair trade advantage... The U.S. Senate bill is expected to have wide support, and, if it passes, could lead to China being labeled a country with a 'misaligned currency'. That would allow U.S. companies to seek anti-dumping duties against China."

Seriously, how dumb is our protectionist Senate? I feel like Jimmy Carter is running our country again (well, maybe it's not that bad). But the current floating Yuan valuation -- and this statement assumes you believe that the Yuan is significantly undervalued which I’m not entirely convinced of -- is helping US retailers and manufacturers stay competitive in the local and global economy. The article also notes that, "China's Foreign Ministry spokesman Qin Gang noted to reporters ... [that] congressmen should take a wider view of China-U.S. trade relations." I agree that a higher priced Yuan is no in one's best interest -- except protectionist US politicians who want to claim victory in reducing imports as they enter an election year.

Jason Busch

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