Sen. Schumer says plans China currency bill

[Jiggy]

WASHINGTON (*******) – Senator Charles Schumer said on Friday he plans to move forward soon on legislation aimed at stopping China from "manipulating" its currency.


"Now more than ever, there is a consensus to finally confront China's currency manipulation," the New York Democrat said in a statement.


"It is the single biggest step we can take to promote U.S. job creation, particularly in the manufacturing sector. We plan to move forward with revamped legislation on this issue in the coming days," he said.


Schumer's statement comes as President Barack Obama's administration faces a decision by April 15 on whether to formally label China as a currency manipulator in a semi-annual Treasury Department report.


Many U.S. lawmakers complain that China's currency is undervalued by as much as 40 percent, giving its companies an unfair price advantage in international trade.


Schumer co-authored a bill several years ago that threatened to slap a 27.5-percent across-the-board tariff on Chinese goods because of its currency policies. However, he and Senator Lindsey Graham, a South Carolina Republican, later withdrew that plan.


Obama, in speech on Thursday on his plan to boost U.S. exports, said it was important China move to a "more market-oriented" exchange range.


Also on Friday, U.S. Treasury Secretary Timothy Geithner said China needs to move away from export and investment-driven growth and toward "strategies that rely more on domestic consumption and domestic demand for future growth."


http://news.yahoo.com/s/nm/20100312/pl_nm/us_usa_china_currency_schumer_1

[Scriptable]

Many U.S. lawmakers complain that China's currency is undervalued by as much as 40 percent, giving its companies an unfair price advantage in international trade.

Schumer co-authored a bill several years ago that threatened to slap a 27.5-percent across-the-board tariff on Chinese goods because of its currency policies. However, he and Senator Lindsey Graham, a South Carolina Republican, later withdrew that plan.

Solution:

Peg a floating tariff on all Chinese goods equivalent to the undervaluation of the yuan, and add an additional fixed "environmental cost" surcharge on top of that to take into account China's lack of polution controls on industry.

[Confuse]

Solution:

Peg a floating tariff on all Chinese goods equivalent to the undervaluation of the yuan, and add an additional fixed "environmental cost" tariff on top of that to take into account China's lack of polution controls on industry.


you need to define what conditions it is undervalued... it's a catch 22 scenario, go ahead with tariffs and US investment in china suffers, US debt buying gets less.. in attempt to stop chinese trade imbalance with the US it is attacking the wrong thing and is only going to damage to US in the long run, what's stopping jobs in the US is the push to white collar jobs and manufacturing overseas, if not china then indonesia, vietnam, others with lower wages... some complain about low wages and lack of labour and environmental protection laws in foreign countries then want to apply penalty "charges" , that's the reason US companies went to such countries to begin with, lower costs maximize profits and these "charges" are just extra cash grab from a US government that spends like no tommorow... the US is in so much debt isn't due to others and some how others "stealing" jobs , it's a country that spends way beyond it's means, instead of trying to fix it they will blame others when such blame isn't the root cause...the environmental surcharge is just going to fill the pockets of politicians or more debt, it has become where china is the all weather boogie man and such is way out of reality that congress has just become a bunch of corrupt politicians doing everything to further themselves, one day blame china, then turkey, obama white house, they lash out everywhere in damaging the interests of the US but it puts up a good show for political clout and fundraising

[TheMiddlePath]

Solution:

Peg a floating tariff on all Chinese goods equivalent to the undervaluation of the yuan, and add an additional fixed "environmental cost" surcharge on top of that to take into account China's lack of polution controls on industry.

And 12 years ago while SOROS was selling Asian currencies that he did not own and cashed the Asian stock markets and at the same time enriching the stock holders in the US and making Asia poorer, no one in US congress was screaming currency manupulation. Instead your congress cheered SOROS on.

Now 12 years on US lawyer congress screams currency manupulation ?


The United States saw its total exports down by 17 percent, while its exports to China fell by only 0.22 percent.
Perhaps the solution is to promote and push for US export to China.

I am not an economist but I do know that what is more important is currrency stability to promote recovery and economic activities. Last thing you want is hugh flucuation of major currency. That will kill economic activities and confident. Malaysia has been there done that. Yeah no thanks to US based funds managers.

[LineDoggie]

It's sunday, so it's time for Attention Whore, Chuck the Schmuck Schumer to get his face in the Media again.

[Solvent]

And 12 years ago while SOROS was selling Asian currencies that he did not own and cashed the Asian stock markets and at the same time enriching the stock holders in the US and making Asia poorer, no one in US congress was screaming currency manupulation. Instead your congress cheered SOROS on.

Now 12 years on US lawyer congress screams currency manupulation ?

The United States saw its total exports down by 17 percent, while its exports to China fell by only 0.22 percent.
Perhaps the solution is to promote and push for US export to China.

I am not an economist but I do know that what is more important is currrency stability to promote recovery. Last thing you want is hugh flucuation of major currency. That will kill economic activities and confident. Malaysia has been there done that. Yeah no thanks to US based funds managers.

Well said.

Should the congress man be busy in passing or blocking the health insurance bill?

[ALT-F5]

The chinese yuan isnt undervalued, compared to the japanese yen which is about 100 yen for every dollar or korea's which is about the thousands. Only seven chinese yuan equals one dollar. The reason for low prices is not "currency manipulation" but the low labour costs that are helped by rural poor moving into urban factories for employment. Here's another fact, most of the chinese trade surplus is created by exports of products designed by foreign companies, foreign companies are the ones that in fact get most of the profiits as the chinese government subsides the cost of foreign MNC's moving production to china.

[JPBaz]

And 12 years ago while SOROS was selling Asian currencies that he did not own and cashed the Asian stock markets and at the same time enriching the stock holders in the US and making Asia poorer, no one in US congress was screaming currency manupulation. Instead your congress cheered SOROS on.

Now 12 years on US lawyer congress screams currency manupulation ?


The United States saw its total exports down by 17 percent, while its exports to China fell by only 0.22 percent.
Perhaps the solution is to promote and push for US export to China.

I am not an economist but I do know that what is more important is currrency stability to promote recovery and economic activities. Last thing you want is hugh flucuation of major currency. That will kill economic activities and confident. Malaysia has been there done that. Yeah no thanks to US based funds managers.

Good to see the China Strong Crew out quick on this one, how about acknowledging the fact that China alone among the top industrial countries in the world does not let their currency fluctuate. As usual there is one set of rules for the Middle Kingdom and another set for the barbarian west. Check out today's NYT.

http://www.nytimes.com/2010/03/15/world/asia/15china.html?hp

I am always amazed by the PRC's ability to blame others and fail to acknowledge their own faults.

[Eventine]

Good to see the China Strong Crew out quick on this one, how about acknowledging the fact that China alone among the top industrial countries in the world does not let their currency fluctuate. As usual there is one set of rules for the Middle Kingdom and another set for the barbarian west. Check out today's NYT.

http://www.nytimes.com/2010/03/15/world/asia/15china.html?hp

I am always amazed by the PRC's ability to blame others and fail to acknowledge their own faults.

... China is not among the top industrial countries. Its GDP per capita is half of Mexico's.

[ALT-F5]

... China is not among the top industrial countries. Its GDP per capita is half of Mexico's.

And ireland's per capita is 4x more then mexico, which to your logic means that ireland's industry is four times that of mexico.

[Eventine]

And ireland's per capita is 4x more then mexico, which to your logic means that ireland's industry is four times that of mexico.

Most people in the world would admit that Ireland is a far more developed country than Mexico, yes.

[ALT-F5]

Most people in the world would admit that Ireland is a far more developed country than Mexico, yes.

Good i'm going to ask someone if they had more shoes made in ireland then mexico.

[Eventine]

Good i'm going to ask someone if they had more shoes made in ireland then mexico.

Making shoes as a nation does not make you a top industrial country, just like making shoes as a living does not make you a top industrial person. The challenges facing top industrial economies and low-end manufacturing economies are very different, and the value of currency is one of those differences. That's why it's a mistaker to think about China as a top industrial country.

[ALT-F5]

Making shoes as a nation does not make you a top industrial country, just like making shoes as a living does not make you a top industrial person. The challenges facing top industrial economies and low-end manufacturing economies are very different, and the value of currency is one of those differences. That's why it's a mistaker to think about China as a top industrial country.

I like you thank you for changing the word "Industrial" to suit your argument.

[Solvent]

Good to see the China Strong Crew out quick on this one, how about acknowledging the fact that China alone among the top industrial countries in the world does not let their currency fluctuate. As usual there is one set of rules for the Middle Kingdom and another set for the barbarian west. Check out today's NYT.

http://www.nytimes.com/2010/03/15/world/asia/15china.html?hp

I am always amazed by the PRC's ability to blame others and fail to acknowledge their own faults.

Same same.

And this is first time somebody says that China alone is among the top industrial countries. Certainly flattered. I am wondering that why other people always say China only makes cheap garbage.

[JPBaz]

Same same.

And this is first time somebody says that China alone is among the top industrial countries. Certainly flattered. I am wondering that why other people always say China only makes cheap garbage.

As the worlds leading exporter, I think China has benefited at other nations expense by keeping their currency fixed to the dollar. What is ironic is that the same people in the Chinese government that chastise the US for its failing economy are the same people that excuse their currency not floating.

http://www.nytimes.com/aponline/2010/03/10/business/AP-AS-China-Trade.html?_r=1&scp=6&sq=top%20exports%20&st=cse

I realize that the Chinese economy must grow to address issues of poverty and to quash domestic dissent, I just question the idea of China being a benign factor in the worlds economy. The US must address it's own issues by increasing industrial wealth and decreasing imports as a way of reducing our debt and living in our means. One way to do this is for China to play by the same rules as every other country.

[Eventine]

I like you thank you for changing the word "Industrial" to suit your argument.

Instead of accusing me of changing it, why don't you look up the term "top industrial country" and see the definition for yourself. As far I'm concerned, you can't be a "top industrial country" if the majority of your population still lives in rural poverty.

[Solvent]

As the worlds leading exporter, I think China has benefited at other nations expense by keeping their currency fixed to the dollar. What is ironic is that the same people in the Chinese government that chastise the US for its failing economy are the same people that excuse their currency not floating.

http://www.nytimes.com/aponline/2010/03/10/business/AP-AS-China-Trade.html?_r=1&scp=6&sq=top%20exports%20&st=cse

I realize that the Chinese economy must grow to address issues of poverty and to quash domestic dissent, I just question the idea of China being a benign factor in the worlds economy. The US must address it's own issues by increasing industrial wealth and decreasing imports as a way of reducing our dept and living in our means. One way to do this is for China to play by the same rules as every other country.

US had and still has choices in terms of international trading. Saying one country's growth based on another country's cost is not fair, after all you made the final decision to import good with low price. Nobody forced you to do so.

I do agree with you though that US need to do something to increase industrial wealth, not to depend on customer consuming and real state to grow.

And recently, the Euro is going lower. Maybe, US can work on that as well.

[JPBaz]

US had and still has choices in terms of international trading. Saying one country's growth based on another country's cost is not fair, after all you made the final decision to import good with low price. Nobody forced you to do so.

I do agree with you though that US need to do something to increase industrial wealth, not to depend on customer consuming and real state to grow.

And recently, the Euro is going lower. Maybe, US can work on that as well.

You are making my point, currency fluctuations are part of a level playing field, China is not playing on the same field. No one is forced to import at a lower price but that is how the system works, China is jobbing the system.

An interesting point is that if China's currency were to fluctuate, the biggest beneficiaries would be other developing nations in Asia and Africa. To a large degree, China's growth has been at their expense. The problems of the US are mostly self inflicted and based on our system. US companies are exporting US jobs and technology because they can make more money and get access to Chinese markets. The issue of currency comes into play when companies make the decision to export a job to China by choosing a Chinese supplier instead of an American one. The artificial rate of exchange makes the American job expendable.

Its up to the EU to worry about the Euro, not me. BTW, the EU is really the worlds biggest exporter when you calculate it as a whole.

[Eventine]

You are making my point, currency fluctuations are part of a level playing field, China is not playing on the same field. No one is forced to import at a lower price but that is how the system works, China is jobbing the system.

An interesting point is that if China's currency were to fluctuate, the biggest beneficiaries would be other developing nations in Asia and Africa. To a large degree, China's growth has been at their expense. The problems of the US are mostly self inflicted and based on our system. US companies are exporting US jobs and technology because they can make more money and get access to Chinese markets. The issue of currency comes into play when companies make the decision to export a job to China by choosing a Chinese supplier instead of an American one. The artificial rate of exchange makes the American job expendable.

Its up to the EU to worry about the Euro, not me. BTW, the EU is really the worlds biggest exporter when you calculate it as a whole.

I don't generally see the point of discussing an issue like this without expert insight into economics, so I'll just leave it at this: for those who remember history, Japan pegged the yen to the dollar (leading to an undervalued yen, which was a huge deal back in the 80s) during its rise to prominence, and China is simply following suit. The US eventually forced Japan to re-evaluate the yen, and the result, many say, was Japan's "lost decade" in the 90s.

Of course, China is not Japan in that it is not occupied by US forces and entangled in an US alliance. This could be a good thing or a bad thing, depending on how the Chinese play their hand.

[Solvent]

You are making my point, currency fluctuations are part of a level playing field, China is not playing on the same field. No one is forced to import at a lower price but that is how the system works, China is jobbing the system.

An interesting point is that if China's currency were to fluctuate, the biggest beneficiaries would be other developing nations in Asia and Africa. To a large degree, China's growth has been at their expense. The problems of the US are mostly self inflicted and based on our system. US companies are exporting US jobs and technology because they can make more money and get access to Chinese markets. The issue of currency comes into play when companies make the decision to export a job to China by choosing a Chinese supplier instead of an American one. The artificial rate of exchange makes the American job expendable.

Its up to the EU to worry about the Euro, not me. BTW, the EU is really the worlds biggest exporter when you calculate it as a whole.

It is not necessarily going to benefit other developing countries. Other countries hardly have a work force in this scale and capable infrastructures to undertake the task of world factory. Maybe, they will end up paying more to buy pricey goods.

I think one thing US can do is decrease the burden of companies within America. The cost of doing business is simply too high.

The main importer of EU goods is US. You are not worrying about it?

[HVU]

An interesting point is that if China's currency were to fluctuate, the biggest beneficiaries would be other developing nations in Asia and Africa. To a large degree, China's growth has been at their expense.

China's growth has not been at expense of other developing countries. Perhaps in short term when looking at a certain company in China vs a certain company in Africa/Asia, but not significantly. When China grows, their industries needs resources which Africa and Asia can supply. Resources that would be hard to sell to other countries. China then invests in e.g Africa, which they benefit from. Africa benefits from China's growth. Many Africans have a positive view on China actually.

Those factories in Africa before Chinese goods entered the market were already having liquidity problems. It's not like that Chinese "underpriced" goods, e.g shoes, entered the African market and made the African manufacturers go bankrupt. African manufacturers have never been world competitive. Some excerpts from a book I read recently, "Deborah Brautigam: The Dragon's gift - The real story of China in Africa":

(About an Sierre Leone fishing company owner)
”He sighed. ” A few years ago, I had two other vessels, all African crew, captains. But after four years I had to let them go. It never worked, the catch as always smaller, there was always some story or another. With the Chinese onboard, you can run a boat efficiently.”

(About a Tanzanian factory):
"The factory was built as a Chinese aid project close to the end of the maoist period. It aimed to produce tropical vaccines and medicines, one of the handful of enterprses operated directly by the tanzanian military. The factory under tanzanian management, was less successfull. The Chinese were asked to return.In 1997, the embassy brokered a 3 m dollar joint venture between New technological applications center of northern china’s shanxi province and the tanzanian ministry of defence. The factory limped along more or less until 2006, when wang lichen, the chinese entrepreneur who started holley pharmaceuticals, saw an opportunity. One of Holley’s specialties is artemisinin, an effective anti-malarial medicine derived from a Chinese shrub Artemisia annua."


"In 1982, Liberia’s government asked China to rehabilitate Barrake, a surgercane plantation and factory near the remote coastal town of Buchanan. They expected a prompt and enthustiatically ”yes!” Instead, the Chinese sent a 50-man team to do a lengthy feasibility study. The team concluded that suger productions at Barrake would need an annual subsidy of 3.6 m dollars. Liberia should look for a more profitable project."

It's an interesting book, I recommend this book if one think that China is only in Africa to exploit their resources.

As a Nigerian diplomat told me in Beijing: "The Chinese are trying to get involved in every sector of our economy. If you look at the West, it's oil, oil, oil and nothing else."

[cn_habs]

Good i'm going to ask someone if they had more shoes made in ireland then mexico.

LOL...Post of the year. Cmon!

[sct1886]

Solution:

Peg a floating tariff on all Chinese goods equivalent to the undervaluation of the yuan, and add an additional fixed "environmental cost" surcharge on top of that to take into account China's lack of polution controls on industry.

No way in hell that would happen. The US firms that have off shored to China would pay off any politician that would entertain the thought. It is no accident they have our former industries and no pollution controls. We only have our politicians here in the US to blame for this predicament. They are playing us as fools with the smoke and mirrors. May they all burn in hell...

[Confuse]

No way in hell that would happen. The US firms that have off shored to China would pay off any politician that would entertain the thought. It is no accident they have our former industries and no pollution controls. We only have our politicians here in the US to blame for this predicament. They are playing us as fools with the smoke and mirrors. May they all burn in hell...


look at it this way...US firms are not national linked entities, they go where they can make more money.. their about the $$$$, they become international in size and they have no "home", no country to keep interests to, its just the money that matters, its just capitalism