The China Syndrome

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A very interesting article found at MotherJones written by investigative reporter Josh Harkinson dated March 14, 2011: "Campbell Fittings, a maker of precision screws and couplings used by petrochemical, mining and construction companies is nothing if not efficient. A typical employee in its factory in Boyertown, PA, supervises two machines that each stamp out a new screw every 12 seconds. Yet its Chinese competitors sell nearly identical screws in the US for at least 40% less -- well below what Campbell pays for raw materials. It's no secret why: For years, the Chinese government has kept the yuan trading at 40% below its true market value, making its exports that much cheaper, "I can fight companies, says Joe McGlynn, Campbell Fittings' vice president. "I can't fight countries." "But, attempts to address the problem have hit a Great Wall here at home. Senior House Republicans are putting the brakes on the Currency Reform for Fair Trade Act of 2011, a bill that would make China's currency practices punishable under US law. They oppose it, says an inside source familiar with the negotiations, because "US multinationals with operations in China really don't like it." These mega-companies fear that China will retaliate by crimping access to it markets -- not to mention that their manufacturing opertions in China will make less money selling goods back to American consumers without the subsidy." .... This investigative reporter goes on to discuss the fact that the 11,000 member National Association of Manufacturers (NAM), America's most powerful trade group for factory owners on the surface act as though currency manipulation is one of its top concerns. That at its website, states that NAM has: "long pressed for China to allow the yuan to appreciate." President Obama in his recent presser with China's representive discussed this very issue of currency manipulation and its unfair affects on America's trade. Supporters of the currency bill, sponsored by Rep Sander Levin (D-Mich), say it's far from draconian and simply affirms the ability of the Dept. of Commerce to consider unfair currency manipulation as a factor in trade complaints -- a power it already has but has so far declined to use. Eliminating this practice, economists estimate would boost American exports by $125 billion a year and create 900,000 US jobs. President Obama supports this bill!! Remember, jobs, jobs, jobs? Is there a logical reason that republicans have to oppose it?