The Looming Trade War With China

[Crewleader]

Weekend Edition
March 26 - 28, 2010

Corporate Whines

The Looming Trade War With China

By MIKE WHITNEY

A war of words has broken out between China and the United States and the pundits are predicting that it will end in a full-blown trade war. The Obama administration thinks that China is manipulating its currency to gain an unfair trade advantage and increase its exports. China's Premier Wen Jiabao's adamantly denies the charge. "I do not think the renminbi is undervalued" he says. "And we are opposed to countries pointing fingers at each other or taking strong measures to force other countries to appreciate their currencies....If the United States uses the exchange rate to start a new trade war, China will be hurt. But the American people and US companies will be hurt even more."

President Obama has tried a number of things to get China to break the dollar-link and let its currency appreciate, but, so far, nothing has worked. The president met with Tibet's Dalai Lama, in an attempt to publicly embarrass Premier Wen so that he'd rethink his exchange-rate policy. But the meeting only angered China and further strained relations between the two trade giants. The administration also announced plans to sell high-tech weapons to Taiwan, knowing the transaction would ruffle feathers in Beijing. China threatened to retaliate, but refused to budge on the central issue.

This week, a bipartisan group of senators joined the fray by introducing legislation that will require the president to take "reciprocal action" against any "country that uses its foreign exchange policy as a countervailing subsidy." The bill is clearly aimed at China and increases the likelihood that Obama will be forced to put punitive tariffs on Chinese products and start a trade war with America's biggest creditor.

But will it really happen?

http://www.counterpunch.org/whitney03262010.html

[westerebus]

1. Save the Wal-Marts!!!

There's you're bumper sticker for the 2012 Presidential Campaign.

[cutlassmama]

2. There is a huge power struggle going on between the Western World, China, and

Muslims. It will be interesting to see how it plays out. Hopefully, WW3 won't come of it.

[upi402]

3. Stand back

...this could get messy. Team Obama did well with Russia, but piss poor to criminal with the banks. I have no idea what these folks will do for their next trick. But it's clear they despise working Americans so I'm not hoping for change.

Israel stuck it's thumb in our eye so what do you guess an Asian that you cause to lose face will do. The world sees us as corrupt and inept now from what I read on other boards -except got the most conservative. I hope this chess game is figured many moves into the game.

[h9socialist]

4. A Trade War isn't necessary . . .

I have strong doubts that there would be anything good to come of it. For a bunch of supposed Marxists, the Chinese are certainly playing capitalist games. As a consequence, the Chinese people seem to be getting the worst of both worlds: Communists serving as labor contractors for multinational capitalist exploitation. I think it would be better in long run to push harder for international labor standards and rights, and the enforcement thereof. This would make Chinese manufacturing less competitive, and less attractive to the multinationals. In the meantime it would be a wonderful thing to finally produce an international agreement cracking down on currency trading. George Soros may be a "liberal" of sorts -- but his career shows how capitalism makes it possible for one or a small group of fat cats to wreck the world economy. The Chinese are simply exercising the power in the market that has finally come their way. Diminishing the power of currency traders and speculators, is a step in the right direction. The world simply has to find the courage and means to do it.

[upi402]

5. "international labor standards and rights"

For us to be part of a push for those, we first need an opposition party to our two parties that push to destroy international labor standards and rights.

[h9socialist]

6. Only if that Party is successful in taking power . . .

. . . otherwise, it's wasted effort.

[upi402]

7. wasted either way then, it sems

Vote for Corporatism brand A, or corporatism brand B = corporatism either way.

In my view, social justice is primarily an economic issue. Tickling the edges is just a nice sentiment. The cancer has metastasized anyway already.

[h9socialist]

8. In the US . . .

. . . you vote for the version of capitalism that will be the least destructive. Only a truly socialist government can change this. But, to bring that about is a task for generations. I know, I was born in the same town as Eugene V. Debs.

[sendero]

9. Good...

... trade with China has benefitted China, not America. I welcome a trade war.