Liberty's Blog

Petition seeks to punish China

Petition seeks to punish China This unfairness they are alledging isn't even concidering the slave labor issues:

With jobs and trade both hot-button election issues, a coalition of business and union groups Thursday pushed the Bush administration to punish China for alleged unfair trade practices.
The China Currency Coalition has petitioned the administration to rule that Beijing's policy of pegging its currency to the U.S. dollar gives Chinese products an unfair advantage in world markets.

For a decade, the yuan has been tied to the dollar at a rate roughly 8.3 to 1.

The coalition of steelmakers, textile companies and organized labor — the AFL-CIO and unions representing steelworkers and autoworkers — argues that the currency peg amounts to manipulation by Beijing. By keeping the value of its currency artificially low, China enables its goods to undercut prices of rival products by as much as 40%, U.S. manufacturers say.

posted by Liberty @ 1:02 PM