So, Donald Trump has made some inaccurate claims again (No surprise here). This time, he was talking about Chinese currency. He has said that China is purposefully keeping its currency value low, so they can’t compete with American companies. This is not a new claim; many other companies have said the same thing.
Surprisingly, the yuan has actually appreciated 26% from 1995 – 2014. The exchange rate between the U.S. and China has gone up 34% since 2007. This means goods and services from China are getting more expensive.
In November, Trump claimed that he will declare China a currency manipulator on his first day in office. Many lawmakers and corporations have accused China of depressing the yuan to make its exports cheaper and its imports more expensive.
Both Presidents George W. Bush and Barack Obama have faced pressure by the Treasury Department to claim China is manipulating its currency.
Trump has blamed China for “tens of millions” of lost U.S. jobs since the country entered the World Trade Organization. He has also vowed to stop Chinese counterfeiting of American goods and cyber theft of American secrets. When asked about this, an interviewer pointed out that his tie from his clothing collection was made in China.
In a paper on Trump’s campaign web site, he says that the country is too afraid to stand up to China. He also said that it is another example of how the politicians in Washington have failed our country. These views are actually going against the Republican philosophy of free-trade. He also says he will enforce stronger protection against Chinese hackers. Surprise, surprise, Trump has also said he will lower the tax rate for corporations. He also wants to send the military to the East and South China Seas, and we’ve all heard what the military thinks of that idea.
Featured image by Jlmmle via flickr.com, available under Creative Commons 2.o license.
