[Mariner]

“and then dump that metal onto us to undermine US domestic production. “

Let’s not forget the advantage of currency pegging and devaluation.

As an example, China keep their currency pegged to the dollar at a rate that is estimated to be 35-40% below what it would be if it was free floating.

That’s a HUGE artificial advantage.

So, we have Comparative Advantage, Absolute Advantage and Artificial Advantage...something the classical economists never even considered. In their era, gold and silver were absolutes.

We again find ourselves in a Mercantilist world, with every country seeking advantage over the other. And ALL seeking the largest and richest market in the world.

And the USA has unilaterally disarmed while being picked clean.

It’s the largest transfer of capital stock in the history of man, and committed Free Traders refuse to see it.

[Alberta's Child]

I look at the currency valuation issue very differently. In fact, I'd make the case that the Chinese yuan is a worthless currency, not an "undervalued" one. Because the Chinese economy is dominated by state controlled industries and there are enormous barriers to private investment, very few companies involved in international trade would accept Chinese yuan as a form of payment if the yuan wasn't convertible to the U.S. dollar at a fixed exchange rate. Companies involved in global commerce want dollars, not yuan.

You'd have to pay me (in dollars) to take Chinese money off your hands.