Chinese Vice President Xi Jinping, expected to be China’s next president, met with President Obama at the White House today.
Commented Scott Paul, Executive Director, the Alliance for American Manufacturing (AAM):
"Our leaders should shake hands with Xi Jinping, but the handshakes must be firm. Unless Xi knows that our government will not stand idly by as China continues to flaunt its obligations on trade and currency, this visit will be nothing more than a glorified photo-op.
"Put simply, China's mercantilism–and our government's indifference–helped to hollow out our manufacturing base over the past decade, taking jobs and wealth with it. We will never lay the foundation for the President's "Built to last" economy unless we insist that China play by the rules, and face severe consequences if it does not.
"Our businesses that are heavily invested in China are too timid for this task, even though their short-term gains come at a tremendous loss for America over the long run. That's why we need a much more aggressive posture from our government. Establishing a trade enforcement office is a start, but that alone won't match China's Central Bank or Beijing's heavy subsidies to its industry.
"Bipartisan legislation to deter China's currency manipulation could easily pass in the House of Representatives, but the bill is being blocked by the House Republican leadership. Instead of doing Beijing a favor as he is now, Speaker Boehner should allow the House to express its will in an appropriate response to China's cheating."
Scott Paul published an op-ed today in POLITICO that urged President Obama to hold China accountable for its currency manipulation, mercantilism, and gross violations of trade obligations:
Today, we are in a serious race with China over supercomputing, innovation and anti-satellite weapons technology. China is not merely the key U.S. supplier of cheap toys, clothing and electronics: Its government is also one of our foreign financiers. China achieved this status by defying the free market and its international obligations toward more open trade and investment.