Sunday, March 21, 2010

Report: China Losing Support of American Business Community

by Bill McBride on 3/21/2010 09:21:00 PM

From the Financial Times: China to lose ally against US trade hawks

Myron Brilliant, senior vice-president for international affairs, who has previously helped to protect Beijing from hawkish trade policies, told the Financial Times: “I don’t think the Chinese government can count on the American business community to be able to push back and block action [on Capitol Hill].”
...
Mr Brilliant said corporate America’s attitude had changed in response to a range of “industrial policies” pursued by Beijing, including the undervaluation of the renminbi, which made it harder for US companies to do business and compete with China.
excerpted with permission
Mr Brilliant has long supported China, including lobbying for China to join the WTO.

And China keeps pushing back - from the WaPo: China's commerce minister: U.S. has the most to lose in a trade war
China's commerce minister warned the United States on Sunday that if it launches a "trade war" against China by levying punitive tariffs on Chinese imports, the United States will suffer the most.
...
"You're not going to get 1.3 billion Chinese to change by insulting them," [Commerce Minister Chen Deming] said. "Could it be related to upcoming elections? I don't know. Because economically, it makes no sense."
...
"[Obama] wants exports to double in five years, but I don't know whom he is going to sell them to."
This is heating up prior to April 15th release of the Treasury report on worldwide currencies that might name China a "currency manipulator".