re post 3; Did you forget your < /sarcasm > were you serious? Sometimes it's hard to tell.
I was serious. They are dumping their goods in America at below cost, and continue to do so even though the dollar has declined. That causes the dollar to further decline, making US labor less expensive, when measured in the euro, or the yen, for example. They don't seem to have a firm grasp on how currency markets work, or how international trade works. We've really taken them for a ride over the years, and if their past behavior is any guide, they will continue to scratch their heads, not knowing why our economy works so well, and theirs does not.
The irony is that they don't really need to know how economics works. All they've got to do is let the free market do its thing, and everything will be fine. But they haven't understood that yet. They are constantly tinkering with the result of the market, trying to get an advantage by manipulating the rates, or by imposing trade quotas or tariffs, or maybe by imposing subsidies. In the end, all of those efforts are for naught, because the exchange rate simply adjusts to negate whatever they do.
If they increase tariffs by 10%, then the exchange rate will go up by 10% and they are right back where they started from. It'll take a while, and they may think they are getting away with something in the short run, but the bottom line is that it's the underlying mix of capital and labor that determines their level of prosperity--not how well they can manipulate the markets.