Trump: Currency Manipulation ‘the Worst of China’s Sins’
Donald Trump called out China on Monday for their reliance on currency manipulation to achieve economic dominance over the last decade.
“The American people need to be told the truth about our ‘partner’ China,” he wrote in an op-ed forThe Wall Street Journal.
“If an American company wants access to the Chinese consumers, that company must share its intellectual property, a condition that violates international fair-trade standards, World Trade Organization standards and common sense,” Trump said.
“But the worst of China’s sins is not its theft of intellectual property,” he added. “It is the wanton manipulation of China’s currency, robbing Americans of billions of dollars of capital and millions of jobs.
“Economists estimate that the yuan is undervalued anywhere from 15 percent to 40 percent. Through manipulation of the yuan, the Chinese government has been able to tip the trade balance in their direction by imposing a de facto tariff on all imported goods.”
The Hill reports:
Trump vowed that should he win the Oval Office next year he would permanently halt Beijing’s distortion of the yuan.
“Imagine the impact that these practices have had on our weakened manufacturing base, our agriculture industry and every small business unable to compete internationally,” he wrote.
“By watching the Obama administration, you might think that nothing can be done about all this,” Trump said of President Obama. “What is most alarming is that much can and should be done, but the White House chooses to do nothing to protect American workers and companies.
“On day one of the Trump administration, the U.S. Treasury Department will designate China a currency manipulator,” he added. “This designation will trigger a series of actions that will start the process of imposing countervailing duties on cheap Chinese imports, defending American manufacturing and protecting American jobs.
“Add to these actions direct and focused protection of intellectual property and we will be back on the path to being the world standard for economic liberty and growth.”
Trump’s article follows Chinese President Xi Jinping’s state visit with Obama last September. The two leaders announced a formal agreement early that month that neither of their nations would conduct nor support the online theft of trade secrets or intellectual property.
Trump sharply criticized Obama for striking a deal with Xi given China’s possible links with major hackings of the U.S. government.
“That agreement is not worth the paper it is printed on and the Obama administration is not doing a thing to fight back,” the outspoken billionaire wrote. “Unfortunately, this has become an all-too-common pattern of behavior for President Obama.”
Photo credit: Express.co.uk.