China slams U.S. after Senate passes currency bill

USA is addicted to slave labor products.

What does America even produce?

It probably initially produces many of the products that many Chinese companies pirate/copy...

"boost in the yuan will make Chinese workers wealthier and more likely to buy U.S. goods, thus creating jobs and narrowing the trade gap." What does the US even produce anymore that Chinese consumers would want to buy?

Here we saw a group of 'stooges'!

I have never heard that term in use outside of communist propaganda.

But the measure’s opponents, stressing the bill’s cost on China ties, also warn that a rise in the yuan would merely boost manufacturing and jobs in countries such as Vietnam or Malaysia—not in the United States.

I fail to see the downside - at least Malaysia and Vietnam do not use slave labor, have the army gun down protestors in the street, or act like the neighborhood bully. Unlike China.

With the Europeans buying way less from China these days, China depends on their best customer, the USA, more than ever.

Hello my name is Carmell I am just going to interject on behalf of my mother Chris.

I have been following the what I call passive aggressive economic war between China the USA and Western Europe.

China in my opinion in the backbone to US capatilism. It provides a vital service to US corporate industry. Mainly in manufacture of goods such as textiles, electronics and other popular products.

It does this by providing facilities ie buildings, machienery and extremely cheap labour for less than a fraction of the price which many developed countries can not compete with.

Many popular American and Western European companies have transfared their manufacturing to China because of its huge honey pot of cheap allround facilities.

The Chinese are excellent at doing foreign and domestic business. They know how to attract business from abroad. They do their research before they engage in any type of buisness. China is like the Wallmart of global business.

The items that the US produces that people buy. Beef, pork, grains, fruits & veggies, oil, gas, metals, technology, software, hardware, vehicles, clothing... and a lot more. While the quality has gone down with some objects (due to corporate greed), many things are still of high quality. China only uses cheap labor to put items together which is also due to US corporate and stockholder greed. Tell me one product that China produces on its own that has real quality and they don't try to cut corners on.

Republican House Speaker John Boehner

This guy is a real winner. cough cough

Keep spoiling China doesn'tt even serve China good---it simply fattens a regime to further suppress its enormous populace---a serious time bomb if continuously denied of its basic human rights and freedom.

This is as much a result of the US dollar sinking in value as it is of a undervalued Chinese yuan. The US peso, I mean dollar, has dropped against almost every currency in the world, from the yen to the yuan to the euro and even the Papua New Guinea kina.

This is a complex matter and can be debated but the greater issue should have been the immense theft of the intellectual property rights conducted by the Chinese and not for selling the U.S. assets and goods so cheaply. If tariffs are imposed on Americans products, they would probably lose by having to pay for higher prices and be confronted with some increase in unemployment including a failure of American bonds and products paid by China. Therefore the damages incurred from this law would seem minimal unless a general trade war erupts across the globe. Although this may seem like an easy way to seek revenge against China as well as creating jobs, it will only result in making Americans poorer. There are no easy solutions and it will be interesting to see the future outcome and how this will affect our relationship with China.

What does America even produce? The Chinese can't buy American goods if America doesn't produce any goods. The US is just a paper tiger.

It's true, the U.S. doesn't do much of its own manufacturing anymore. That means a "trade war" wouldn't do much damage to the U.S. If the U.S. were to actually go through with this (they won't), it could actually work. Every southeast Asian manufacturing economy (Malaysia, Thailand, Vietnam) should be on board with this, for obvious reasons. Actually, every market economy in the world should be on board with this. China won't move on this issue unless its hand is forced.

To Carmell O'Neill: everything you said is true. The reason all of that is possible is that the Chinese government has artificially depressed the value of the yuan. If the yuan were allowed to float on the currency exchange markets, its value would increase greatly and make all of the things you mention a lot less palatable to foreign companies. It's true that the Chinese are good at business -- especially when they can control the rate of exchange.

The real time bombs are indeed the increasingly loosened U.S. monetary policy & tthe disastrous consequence of bursting a big balloon ( mega U.S. - Chinese bilateral trade amounted to ~US$400 billion per year ! ) -- impact on world growth. The already slowing economic recovery process, with weaker & weaker momentum given crisis here & there, will have to locate support from alternative 'engines' : from Japan or Africa ?

All of Southeast Asia and South America are would love to see a "trade war" bewtween China and the United States. And it's true, it would hurt China much more than it would hurt us. I'd say those are empty threats.

China is the biggest customer for Oregon (USA) products. Number one product made in Oregon and sold to China is Intel Pentium processors. Triquint Semiconductor also sells a lot there. Yes. Agricultural products. Wheat, soybeans, hay, nursery stock, grass seed. But also wine. Seafood. And air quality monitors, water quality monitors,

Benchmade knives. A model that sells for $200 in the U.S. sells for $1400 in Beijing, and they are buying them. There in lies one of the problems. Only the rich in China can afford American and European quality goods. They want them.

A Chinese friend of mine tried to start a home-building business in China. Chinese government rules would not allow him to get foreign currency to buy imported components and fixtures that he wanted for these homes. They say -- buy Chinese.

China is following a mercantilist policy, and the only reason why there has not been pushback is that so many American corporations have been profiting from the low yuan. American retail stores sell Chinese made goods at huge markups. Chinese manufacturers are not benefiting as much as they should. A change in policy to allow Chinese consumption would benefit parties on both sides.

The Chinese government knows it will need to switch to a consumption-driven economy at some point. It is very expensive for the government to keep the yuan low in the face of a massive trade surplus. There is a risk of inflation. They are waiting for the right moment. Maybe waiting for a few more American manufacturers to go under, sell their equipment and lay off skilled workers. Waiting for Chinese factories to increase their capabilities. This way they can compete even with a higher yuan.

to appease protesters on Wall Street (?)

Food! The USA has more food and less people Than China so China should buy more American Pork beef corn etc..

China needs the USA! The USA is addicted to cheap Chinese imports!

Why not bring back the Gold Standard?

Before Nixon, world currency was remarkably stable.

johninnaha - Herman Cain supports bringing back the Gold Standard. Amazing, huh!

kukuchai, China is the Child, what are they going to do about it?

I'll buy that for a dollar

Speaking as a proud, patriotic American, I have to agree wiith... China on this one. This is just election year posturing and it wasn't that long ago that the U.S. was complaining that China's fixed-rate Yuan was destabilizing. Now that the Yuan is allowed to float, it's STILL a problem?! As the chart in the article shows, the Yuan has been steadily rising against the dollar since it was allowed to float, but I guess it isn't moving fast enough for those in Congress who are up for re-election in the next year.

Jeffrey DuelleyOct. 13, 2011 - 06:17AM JST. If America is so great, then why is the U6, the widest measure of unemployment, at 23%?

Compare to China, the higher salary in the U.S. is not the most important deterrant in manufacturing or service industry. All competitive companies face excessive unemployment tax, social secuity tax, local, state and federal tax law with many layers of complex regulations and rules that can add 20-25 percent over their base salary. There is a strict environmental regulations which is costly for most companies and makes any major manufacturing a disatvantage. There is a continue increase in health care cost that is another problem. Domestic U.S. companies also faces potential lawsuits for any exaggerated or false accusation, so businesses has to pay more attention and has invested more into layers of legal defense team to protect their investments. U.S. should adopt a British legal system to counter the excessive bogus lawsuits. If a person filing a lawsuit and if they lose, they should be responsible for all the legal cost of the accused. This will reduce the fivilous lawsuits in the U.S.

Like it or not, it's election sabre rattling. As well, let's remember that the Chinese want what America has. China wants nothing more than to have the world depend on them for everything, thus to dictate global policy.

Regardless of the coming election, I'm interested to see if any jobs (not service industry Wallmart jobs) would actually come back to the US. I'm not sure that's the goal here, but more the US is looking for a cash grab on exports to China. Why not? China has had it pretty sweet for some time now.

Here we saw a group of 'stooges'!

Good job usa!!! Go Go America....

US is childish!

FadamorOct. 13, 2011 - 03:09AM JST. As the chart in the article shows, the Yuan has been steadily rising against the dollar since it was allowed to float, but I guess it isn't moving fast enough for those in Congress who are up for re-election in the next year.

There is a problem with strong Yuan. As you know, China has over $1 trillion in U.S. treasury, and what happens if Yuan appreciates by 25 percent, and if China decides to withdraw 25 percent of $1 trillion? China will get $250 billion in free money from U.S. on just the currency exchange. Sounds like a good deal for U.S.?

Correction on above. If Yuan is appreciates by 25 perecent, and if China decides to withdraw the entire $1 billion, they will get $250 billion in free money, just on currency exhcange.

Since when does America own the Internet? America may have invented and produced things in the past, but now creates nothing and is nothing but a dying empire. If America is so great, then why is the U6, the widest measure of unemployment, at 23%?

Nothing will happen in U.S. congress other than pointing th U.S. middle finger policies toward China. The real cuprid is not the Chinese companies, but thousands of greedy U.S. corporations and don't forget, the 20,000 Japanese companies that manufacturer their products in China. The result is a massive trade inbalance created by these foreign companies. Half of the U.S. trade inbalance is the direct result of U.S. corporations. The CEO's of these companies gets rewarded for maximizing the profit for these companies. They really don't care if the products are manufactered offshores as long as profits are made. The greed is a continue problem. If U.S. goverment implement a tariffs on products exported to U.S., these corporations will stay one step ahead and move to Vietnam, or other countries that are tariff free.

Good question.

What does the US produce?

As far as I know the U.S.A. produces:

Weapons, armaments and the means for transporting/delivering them, troops and their support, including planes, helicopters, tanks, jeeps, trucks, rocket launchers, aircraft carriers, ships, drones for spying and killing and probably a few more things I've forgotten.

It also produces drugs, both legal and illegal.

Some really lousy food, all slopped up together and served in the same trough.

It's this wonderful diet that gives American women those droopy, pear shaped bodies.

Some music, but a lot less than it did.

Some incredibly bad TV programs.

Oh, and of course wars.

On the positive side, it has some wonderful beers, and I don't mean Bud/Coors, etc. US microbreweries produce some amazing beers.

It's not China's fault that US companies are addicted to cheap labor. Americans can criticize China, Japan, and the rest of Asia all they want, but at least they produce things, have trade surpluses, savings, and don't have women with the bodies and IQs of cattle.

Obama should step down before he got fired! Obama is useless bum!

Trying to strong arm China is definitely going to work! Way to go USA! rolleyes rolleyes