The Hill News

With a bill to combat China’s currency manipulation still before Congress, opponents have increasingly peddled a seductive counter-argument:  The legislation, which broadens Washington’s scope to tariff artificially cheap Chinese imports that reduce American output and employment, will not only antagonize China.  It will do so unnecessarily, because China is already steadily losing competitiveness versus America in the manufactured goods that dominate its sales in the United States.      

The case for such confidence looks impressive, and includes reports of skyrocketing Chinese wages, data showing soaring overall Chinese inflation, and Beijing’s decision to let its tightly controlled currency rise in value against the U.S. dollar for most of the last half decade â€" which should make all Chinese-produced goods more expensive relative to U.S.-made goods.

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