Schumer's Bad-Cop Role on Yuan Has Its Benefits

WSJ ^ | January 17, 2011 | By GERALD F. SEIB

[americanophile]

Some people are preparing to give Chinese President Hu Jintao a warm welcome when he arrives in Washington this week.

Sen. Chuck Schumer isn't one of them.

Instead, Mr. Schumer says he wants to use the Chinese leader's visit to deliver a message: "Both Democrats and Republicans in the Senate and the House, and the American people are just fed up when, up and down the line, China doesn't play by the rules and seeks unfair economic advantage."

The New York Democrat started trying to deliver that message Monday, the eve of the Chinese leader's arrival in the U.S., when he unveiled the latest version of his legislation to punish China for suppressing the value of its currency. And on Tuesday he's opening a new front when he uses a visit to a New York optics company to push the Obama administration to call out Beijing for hoarding its reserves of rare-earth metals, making life difficult for a range of manufacturers.

Mr. Schumer has been trying for most of the last decade to promote the message that China doesn't play by the rules, with mixed success. Yet his renewal and expansion of the effort now points to a basic, underlying reality: The global economic trauma of the last three years has intensified the economic strains between Washington and Beijing, while ensuring that they will be the dominant feature of the global economic landscape for years to come.

The loss of millions of American jobs has increased anxiety about the outsourcing of work to China, while the rise in the budget deficit caused by the crisis has raised fears about relying on China to finance American spending.

[americanophile]

I think I may require an intervention. For the first time in my life, I find myself thinking that Chuck Schumer sounds reasonable on something. Maybe even correct. Help.

[sfwarrior]

Never thought, I'd say it, but Schumer is right. We need tariffs here to allow American businesses to stay onshore and compete fairly with the Chinese. Otherwise, everything will be made in China and our “intellectual jobs” are already being offshored to India.

[muddler]

WTH is the world coming to when chuckie is right?

[goodnesswins]

Chuckie must not be highly invested in China...

[llandres]

“to call out Beijing for hoarding its reserves of rare-earth metals”

Not to mention the mega-increase in their BUYING much of the world’s GOLD. But CS’s belated protestations are laughable since he supports a president who’s been doing more to sell us out to our enemies than all the others in our lifetime put together.

[VeniVidiVici]

Rather than make US business more competitive, Schumer would rather wait and try to force the Chinese to be more fair.

I would think that making US business more competitive would both spur employement AND piss-off the Chinese, perhaps making them more compliant.

But, no. Democrats can’t POSSIBLY make US business more competitive and risk losing out on tax collection.

[momincombatboots]

I am not sure I agree. It seems that the US is equally guilty of such accusations. Having the Chinese fix their problems means the US won’t fix its high cost of doing business. Seems to me the high cost of doing business here is the issue, China is a sovereign nation, if they are simply taking advantage of our broken policies then what is truly wrong with that. Fix the insanity here to encourage hiring. For example I live in NC, it is expensive for businesses to operate here compared to our neighboring states, but we have well qualified workers. Neighboring states just open up businesses right on the borders. I don’t want to punish SC because they take advantage of the situation, I want to fix NC. This makes more sense than anything. I also think it is dishonorable to be begging for breadcrumbs when we have all the resources to be self- sufficient.

[goodnesswins]

I read your tagline...are you moving to OREGON? or just visiting?

[americanophile]

Good point, although I’m not sure we can ever ‘compete’ fairly with a country that has slave labor, no intellectual property rights, and no health or environmental regulations.

[VeniVidiVici]

Good point, although I’m not sure we can ever ‘compete’ fairly with a country that has slave labor, no intellectual property rights, and no health or environmental regulations.

No, we can't. But that still doesn't mean that we do nothing. Strangling business in red tape and killer taxes together with OSHA and environazi minutia and then just throw our hands up screaming 'UNCLE' just because the other guy is cheating, certainly doesn't help us compete.

[momincombatboots]

Just going for a visit when the road to crater lake opens. I would love to live in the Pacific NW.. My hub and I call it Ore... gone... We haven’t had a real vacation in a while, if this one doesn’t get postponed. We have looked at Washington state because it has no state tax.