First is what we discussed in class that ending this would create a weaker dollar and thus hurt us as well. Manipulating the currency keeps the dollar high so by having the manipulation stop it could have reverse effects on the United States. Second is that China is not the worst currency manipulator. Singapore and Taiwan both manipulate their currencies worse than China. As well as Switzerland and Japan who could arguably be worse than China. There are also countries who aren't as bad as China but still manipulate their currency. So this is more a world-wide-spread issue than just the United States versus China. (below is a table of countries who manipulate their currencies)
Third is that China is getting better by not manipulating it so much. They have let their currency gain value quite a bit in recent years. Fourth is that just calling them a currency manipulator is not going to do anything to make them stop. If we were to pur tariffs on China they would do the same to us and thus be no help. Lastly, the Chinese have shown they sometimes run a pride-based foreign policy. If the United States and the rest of the world want them to do something, they would most likely just refus to do it. So if we are going to call China a currency manipulator we should give them a better idea. So all this talk about getting tough on China and labeling them a currency manipulator is not necessarily a good idea.
Though at times Americans grow frustrated with the Chinese they are also keeping the dollar high with what their doing and we also partake in a lot of trade with them so it's important we keep positive ties with China and instead od just labeling them a currency manipulator find a way to help them find better ways to have such a trade surplus that they desire. Which in all actuality they have probably tried to do but found this is a good way for them. Either way it's important to start any problems with China by labeling them a currency manipulator.
I agree that there are other currency manipulators some of which are greater than China and so it may be unfair to pick on China while leaving the others alone. The reason for this is not that either candidate really cares about the currency manipulation and how it affects the world, but instead to use China as a point to get elected. China has been in the news and on American's minds for some time for various reasons due to media coverage and if either candidate started talking about Singapore it would not have the same effect. Romney putting tariffs on China and calling them a currency manipulator may not be to actually fix the problem but instead to make a point going along with his Republican ideologically to gain voters. I personally think this is more of a political ploy than an actual thought out international economic solution.
ReplyDeleteI believe that there are so many countries manipulating their currency to protect themselves. I agree that even the candidates said in the election debate that they will make tough on China, they are still going to have a closed relationship with China. It is unavoidable. China is a large exporting country to the U.S., especially the china product like dishes, bowls and cups.
ReplyDeleteWe also see that Chinese currency it does keep going up these years. As I think, there is a level that Chinese currency stay,and it cannot go down in the current, because it will hurt the Chinese workers and consumers.
Certainly its agreeable that China has done a bit of currency manipulation and they have only been highlighted because the U.S in massive debt towards them. But the fact remains that all the countries doing it do it to serve a purpose and get themselves in better positions. Which brings the question as to why the U.S doesn't do the same as well? Are there looking at factors that they wont make as much money from trade if they keep their currency low? Or even make it lower?
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