China and Currency Manipulation

China and Currency Manipulation

By exploiting world currency markets, countries like China and Japan effectively subsidize their exports to the United States, and place a tariff on U.S. shipments to them. This manipulation is taking place on a massive scale. By some estimates, China’s yuan is undervalued by as much as 40 percent compared with the U.S. dollar, and eliminating that artifical devaluation would lead to significant employment gains across America.

China’s currency manipulation has contributed to the dramatic increase in the U.S. bilateral trade deficit with China, which now tops $318 billion a year. China has amassed foreign exchange reserves of more than $3.8 trillion, far surpassing any other nation’s reserves.

China’s currency manipulation also attracts foreign investment into China and away from American manufacturing facilities. This flow of investment already has cost Americans billions of dollars in lost wages. When countries adopt artificial exchange rates not based on market forces, they not only exacerbate the U.S. trade imbalance, but they create global trade imbalances. Additionally, currency manipulation results in a sizeable difference in labor costs. This difference creates the illusion of a comparative advantage for a given country. Ultimately, currency manipulation is a subsidy that can put American manufacturers at an unfair disadvantage in the global marketplace.

Ending that subsidy, however, would create millions of jobs in every state.

@KeepitMadeinUSA on Twitter

  • Toxic fast food meat is just another example of the dangers of Made-in-China goods: http://t.co/aAGHxJiQHA 46 min 57 sec ago
  • A #MadeinAmerica @TervisTumbler will keep your drink cold during the hot summer months: http://t.co/hXDkQruOuT 5 hours 43 min ago
  • .@SecretaryFoxx & 11 former transportation secretaries urge Congress to pass a long-term transportation funding bill: http://t.co/e1T5IJ0Izl 6 hours 18 min ago
  • We agree with @SecretaryFoxx: We need a long-term transportation infrastructure spending plan. http://t.co/0km740jVEW Will Congress listen? 23 hours 55 min ago
  • .@SecretaryFoxx says long-term transportation plan needed. Doing so (w/ Buy America policies) will create jobs: http://t.co/greHym2C6x 1 day 1 hour ago
  • .@SecretaryFoxx says US transportation system "crumbling" in speech calling for a long-term spending plan: http://t.co/lgOu6ZjYoe 1 day 1 hour ago
  • In @PressClubDC speech, @SecretaryFoxx calls for a long-term transportation spending plan instead of short-term fixes to Highway Trust Fund. 1 day 1 hour ago
  • 9 fun facts abt NY’s bridges, @Buzzfeed! Wouldn't it be great if a No. 10 told us they were all Made in the USA? http://t.co/YdicwMUKoq 1 day 1 hour ago
  • .@Politico poll: Economy voters' top worry. To boost economy & create jobs, we shld rebuild our infrastructure w/ Buy America requirements. 1 day 2 hours ago
  • No. 1 issue for voters is economy, @Politico poll finds. Voters also call manufacturing jobs a top economic concern: http://t.co/wN34O8kOwE 1 day 2 hours ago