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U.S. Business and Industry Council’s Alan Tonelson on China’s manipulation of its currency.
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Manufactures tonight are furious over the U Obama administration's refusal to stand up to China.
And to -- to stop cheating on its currency.
China is artificially keeping the value of the wind down making Chinese goods in the US cheaper and US goods in China more expensive now.
The net result of all of this is millions of middle class American jobs disappearing.
And hundreds of billions of dollars a year going to China.
Joining me now -- tunnels and a research fellow at the US business and industry council.
Alan welcome great to have you here I want to start with that.
Treasury had it up put out yesterday that has.
Our knickers -- a twist at the show they wrote over the past decade China has resisted very strong market pressures.
But -- on appreciation China's real effective exchange rate has exhibited persistent.
And substantial would be that under valuation yeah -- no kidding.
I guess our question is why are you doing something about it.
Well that's really the 64000.
Dollar question Jerry and as you noted -- your introduction.
We've been asking that since.
Certainly since President Obama was it was inaugurated.
In January of 2000 -- because he promised in the spring of 2008.
He would back strong legislation that had been introduced in congress that year.
That would give Washington greatly expanded authority to fight Chinese currency manipulation.
Here we are nearly forty years later he's done absolutely nothing.
Except simply a piece China and continue to allow this hemorrhage of good jobs and wealth.
Over across the Pacific Ocean to the tune of hundreds of billions of dollars a year.
Well you brought it up you said candidate Obama was set all over this issue we actually have a sound let's -- that.
Sure.
The problem but we've got -- China is that.
For all the tough talker George W.
Bush.
He is a patsy when it comes to negotiating these agreements and what we need to do is to just be better bargainers.
And say look here's the bottom line.
You guys keep on manipulating your currency.
We are going to start shutting off access to some of our markets.
So Alan that's a promise broken.
That is a clear promise broken the only thing the president has done is.
He's filed a couple of cases that the World Trade Organization.
Where the deck is unfortunately -- very heavily.
Against American producers and against American workers because most of the members of the World Trade Organization engaged in the same kinds of predatory trade practices.
That the Chinese do so that's bound to be completely in effect of this president is totally dropped the ball and I hate to say it.
But he has permitted American trade policy to be dominated.
Just as completely by offshoring multinational corporations as his predecessor did.
Well you say dropped the ball.
Good idea how much that's cost the US how much it's cost American workers and why does he refused to do anything on that score.
-- once again we're talking about millions of jobs over the past.
Eight year is since currency manipulation concerns first began to be raised in Washington by US based manufacturers.
And we're talking about.
Nearly two trillion dollars worth of national wealth in the form of -- cumulative trade deficits.
That we've -- -- with China since the early two thousands the reason that he hasn't acted is because I think.
He -- been listening to closely to Wall Street offshoring interest and too closely to manufacturing offshoring interest look at who he's named.
To be his main advisor his main private sector advisor.
On private sector job creation.
Jeffrey Immelt triple CEO of GE one of the leading outsourcing companies in this country for decades.
What.
What else that we got what I -- -- you make a great point because.
You know not only is and held in charge -- that I I think a -- in the last decade he's grown more jobs overseas and -- -- in this country and that.
Absolutely it -- like just like multinational corporations generally speaking who by the way.
As a group run massive trade deficit so they have been contributing to the overall US trade deficit and to the national debt.
Because the higher our trade deficit -- is the higher the national debt becomes and that the deeper into debt we think this country to the great detriment of the future generations.
Well I -- play some sound from another politician this one a current politician running for.
The highest office in the country are also making the same promises that Obama -- as a candidate.
-- -- -- How do you make China do these things well number one on day one is acknowledging something which everyone else there -- currency manipulator.
And on that basis we also go before the WT the WTO we can't just sit back and let China -- All over as people say we'll start a trade war there's one going on right now folks they're stealing our jobs.
Will -- new administration really stand up to China I think that is the big question.
It's one of the -- it's one of the huge questions and certainly Mitt Romney has been the only major Republican presidential candidate who's been talking any sense about this question whatever.
However I'm a little concerned to hear him.
Start to talk about taking China to the World Trade Organization.
Because that is simply going to be few -- The organization is stacked against US interest it takes way too long cooperate.
And if he really wants to deliver emergency aid to the US economy now.
Which is what we need he's gonna have to act unilaterally.
I am comforted by the fact that in his 59 point plan.
Which he released earlier this year he talked very he talked very specifically about taking -- unilateral actions to -- Chinese products.
Unless China's currency manipulation stops very soon after he becomes president.
Well -- it's been a pleasure chatting with the -- must -- -- on this very topic I'd love to I think most Americans are fed up with that.
When really wanna see some action thank every every poll shows of that and thanks so much.
-- my pleasure my pleasure to have you here thank you --
