Tuesday, November 29, 2005

China Not a Currency Manipulator

Logan Wright at Survived SARS posts on the decision by the Bush administration to not label China a currency manipulator and its effect on the tariff proposed by some in Congress. Logan rightly sees this as a "victory for free trade." Give it a read.
This move signals a much more assertive posture by the administration, who up until this point have been content to let Congress take the lead in public against the Chinese on this issue. However, a couple of Snow speeches before small audiences in Washington have signaled his clear opposition to the Schumer-Graham legislation that would impose a 27.5% tariff on all Chinese goods. By the way, have Schumer and Graham updated the bill to now propose a 25.3% tariff, taking the yuan's recent appreciation into account? Just wondering.