Shaun Rein is shocked by the American fear and anger towards China, including the misplaced rethoric against China’s currency, he reports in CNBC. “Many attribute China’s boom as a result of stealing American jobs and intellectual property, rather than efficient economic policies and hard work ethic.”
America needs to get more competitive at manufacturing to reduce our overall surplus, not blame China’s currency policies. Trade patterns are far more inelastic than many economists believe.
In fact, more than 70 percent of big American multinationals operating in China told my firm they did not want the renminbi to appreciate too much because it will cut into their profits. The majority also said they would increase costs to the American consumer or move to cheaper production areas if it rose.