US is trying to bring out bills that penalize countries such as China, who manipulate their own currencies to help the country grows bigger and stronger. By doing this many countries will be affect from this action. Jobs are lose everyday and the Yuan are raising at 4% this year.
This is also a political issue between the Democrats and Republicans. Obama wanted the bill to pass. I think by having the bill pass it will cause a trade war. We will have to see what will happen.
I can understand the frustration over China's supposed manipulations over its currency, but I do not think that a tariff on China is the way to boost the US job market and economy. Making Chinese products more expensive may not have as much of a direct effect on production and jobs as the lawmakers want to believe. Plus, China probably would retaliate if such a bill would pass, which would likely end up hurting the US.
ReplyDelete