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China now costly? Currency matters |
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Written by Stumo
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Wednesday, 18 June 2008 |
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Our patriotic U.S. companies are still relocating there, more than anywhere else. But currency makes a difference.
A long list of concerns about China is feeding the trend [of choosing other Asian countries to relocate]:
inflation, shortages of workers and energy, a strengthening currency,
changing government policies, even the possibility of widespread civil
unrest someday. But most important, wages in China are rising close to
25 percent a year in many industries, in dollar terms, and China is no
longer such a bargain.
If Congress passed bills to correct foreign currency misalignment,
we would not have this drain going on so long. These companion bills would
go a long way towards addressing that portion of the trade
problem.
* S. 796, Fair Currency Act of 2007, Stabenow, Bunning, Bayh, Snowe and Levin.
* H.R. 2942, Currency Reform for Fair Trade Act of 2007, (Co-Sponsors Tim Ryan (D-OH) and Duncan Hunter (R-CA)
Many Senators and Representatives have signed on the bills, but these have not. Call them. Get them on board.
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