From Heritage Foundation website:
Members of the House and Senate have introduced legislation aimed at punishing China for unfair manipulation of its currency. They blame China’s alleged currency manipulation for the $232.5 billion U.S. trade deficit with China and the loss of American manufacturing jobs. Accordingly, their proposals include a wide variety of retaliatory measures, such as antidumping duties, punitive tariffs, countervailing duties, trade and investment restrictions, disciplinary action in international bodies, and even U.S. intervention in international currency markets. But these measures would do more harm than good. Many would only add to the cost of living for American households and to the cost of business for American companies. And none would provide a boost to U.S. manufacturing, exports, or jobs by making America more competitive. Congress should recognize that domestic policies affecting savings, government spending, and education have far more impact on America’s trade imbalance and international competitiveness in the global marketplace. [Full Text]
Daniella Markheim is Jay Van Andel Senior Trade Policy Analyst in the Center for International Trade and Economics at The Heritage Foundation.