The China Syndrome
By gladys46
@gladys46 (1205)
United States
March 16, 2011 5:40pm CST
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?
1 response
@xfahctor (14118)
• Lancaster, New Hampshire
17 Mar 11
Whew! For a second there I thought I was going to have to go on another bad science stamping mission...lol.
On it's face, i think i like the idea of this bill but there is some bizzare and completely unrelated material in the bill...for example:
SEC. 3. INELIGIBILITY OF CERTAIN SLEEPING BAGS FOR PREFERENTIAL TREATMENT UNDER THE GENERALIZED SYSTEM OF PREFERENCES.
[i]
(a) In General- Section 503(b) of the Trade Act of 1974 (19 U.S.C. 2463(b)) is amended by adding at the end the following:
‘(5) CERTAIN SLEEPING BAGS- An article classifiable under subheading 9404.30.80 of the Harmonized Tariff Schedule of the United States shall not be an eligible article for purposes of subsection (a).’.
(b) Applicability- The amendment made by subsection (a) shall apply to articles entered, or withdrawn from warehouse for consumption, on or after the 15th day after the date of the enactment of this Act.[/i]
Either way, I have not heard what their objections to the bill in general are.
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@gladys46 (1205)
• United States
17 Mar 11
From the article: They oppose it, says an inside source familiar with the negotiations, because "US multinationals with operations in China really donit like it."
Apparently, that's enough for republican "leaders" to oppose the bill, and reportedly, they're doing just that ... opposing the bill!
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