US Congress intends to pass a currency bill, potentially triggering off a trade war with China by imposing tariffs on trade, notes business analyst Shaun Rein with increasing amazement in CNBC.
Risks of a trade war are rising as anger is bubbling up not only in Washington but also in Beijing where officials face huge domestic pressure to stand up and declare an end to American hegemony.
On Thursday October 6 President Obama lashed out, “China has been very aggressive in gaming the trading system to its advantage and to the disadvantage of other countries, particularly the United States.” He continued, “Currency manipulation is one example of it.”
After hearing President Obama’s speech, one influential Chinese person told me angrily, “We have already appreciated the renminbi 8 percent in the last year, forcing the closure of many factories, yet America’s jobs growth remains anemic. America’s jobs problem has nothing to do with China’s currency rate but Congress’ irresponsible bickering, lack of a job recovery plan and inability to reign in Wall Street. Congress is causing more problems than solving (any).”
The anti-China rhetoric is one of the few issues that gain bi-partisan support in the Congress. America’s political leaders have tried to divert attention from their own inability to create a job creation plan by blaming another country’s exchange rate despite China playing a relatively responsible role in the past year.
Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
- Jobs in China? Not that easy – Shaun Rein (chinaspeakersbureau.info)
- The debate: The End of Cheap China – Shaun Rein (chinaherald.net)
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- China education fueled by US education – Shaun Rein (chinaherald.net)
- Why China should not bail out Europe – Shaun Rein (chinaherald.net)
- Why Chinese prefer wine over beer – Shaun Rein (chinaherald.net)