Mr. Romney says China鈥檚 leaders are 鈥渃heaters鈥� who keep their currency artificially low to make Chinese products cheaper on the world market. He says that on 鈥淒ay 1鈥� of a Romney presidency, he would declare China a currency manipulator 鈥� a step the US has not taken since 1994, but which would pave the way to imposing duties on Chinese products. The US trade deficit with China amounted to nearly $300 billion in 2011.
Obama has resisted demands from both Democrats and Republicans to make the 鈥渕anipulator鈥� designation, which he says could set off a trade war. Instead, he claims that steady diplomatic pressure has worked better. The administration鈥檚 evidence? China鈥檚 currency has risen by almost a third against the dollar since 2005, helping to raise Chinese labor and manufacturing costs.
This may be a rare issue where American business aligns more closely with Obama. The US Chamber of Commerce opposes a 鈥渕anipulator鈥� designation as unnecessary. But Romney鈥檚 get-tough position could win him points in some manufacturing swing states where anti-China sentiment runs strong.
