Trade Deficit
The U.S. trade deficit with communist China has hit a new all time high of more than $213 billion and the final numbers for this year aren't even in yet. China keeps its currency undervalued, which leads to the loss of American jobs .
China grew its global trade surplus by 74 percent last year, to a record high. It expects to achieve even more growth this year as it sells Americans an avalanche of cheap Chinese products. China is a trade cheat, because it keeps its currency artificially low to boost its products in foreign markets. Some in Congress want to put tariffs on Chinese products, until China makes a currency adjustment.
Ohio Congressman Tim Ryan insists: “Nobody wants to put tariffs on China, but we're to the point, where we really don't have many more options. We've heard lip service for years. They continue to manipulate their currency and so when push comes to shove, the United States of America is going to having to act in its own best interests and the best interests of a stable global economy.”
The head of the Chinese central bank paid lip service to the currency imbalance, saying, "I think the flexibility of the exchange rate will be increased." In July, China was under similar pressure to let its currency rise, but the adjustment was only 3.8 percent. China has let its currency rise, but nowhere near enough, because their currency is 40 to 50 percent undervalued and letting it rise three or even four percentage points a year won't do much good.
The American delegation led by Secretary of Treasury, Henry Paulson returned from talks in Beijing in December and our Treasury Department timidly reported that the Chinese currency reforms were considerably less than needed, but no action was taken.
An additional issue is that American companies have not been able to export enough goods and services to China, because their communist government will not permit the entry of most of those products and services.
China grew its global trade surplus by 74 percent last year, to a record high. It expects to achieve even more growth this year as it sells Americans an avalanche of cheap Chinese products. China is a trade cheat, because it keeps its currency artificially low to boost its products in foreign markets. Some in Congress want to put tariffs on Chinese products, until China makes a currency adjustment.
Ohio Congressman Tim Ryan insists: “Nobody wants to put tariffs on China, but we're to the point, where we really don't have many more options. We've heard lip service for years. They continue to manipulate their currency and so when push comes to shove, the United States of America is going to having to act in its own best interests and the best interests of a stable global economy.”
The head of the Chinese central bank paid lip service to the currency imbalance, saying, "I think the flexibility of the exchange rate will be increased." In July, China was under similar pressure to let its currency rise, but the adjustment was only 3.8 percent. China has let its currency rise, but nowhere near enough, because their currency is 40 to 50 percent undervalued and letting it rise three or even four percentage points a year won't do much good.
The American delegation led by Secretary of Treasury, Henry Paulson returned from talks in Beijing in December and our Treasury Department timidly reported that the Chinese currency reforms were considerably less than needed, but no action was taken.
An additional issue is that American companies have not been able to export enough goods and services to China, because their communist government will not permit the entry of most of those products and services.
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