Tags: China | Revaluation | Hurt | U.S. | Jobs

China Revaluation Would Hurt U.S. Jobs: Study

Thursday, 15 Apr 2010 11:37 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Extensive outsourcing by U.S. industry means that a revaluation of the Chinese yuan sought by many U.S. politicians would destroy U.S. jobs, a study by independent economists and other experts said Thursday.

The study, published by the Center for Economic Policy Research (CEPR), was published on the day that the U.S. Treasury had been due to issue a report widely expected to brand China a as a currency manipulator.

But Treasury Secretary Timothy Geithner decided on April 3 to delay the report, defusing rising tension over China's currency between Beijing and Washington.

The CEPR study, comprising 28 analyses of the issue, concludes that a yuan revaluation of only 5 percent would eliminate China's trade surplus with the world.

But it would only cut the U.S. trade deficit with China by $61 billion, according to the study, edited by trade economist Simon Evenett.

A 10 percent revaluation of the yuan would improve the U.S. deficit by $111.5 billion — not enough to eliminate the U.S. shortfall with China.

Because so many U.S. exporters buy parts and components from China, the revaluation would raise their costs, resulting in a hit to U.S. exports that would cost 424,000 U.S. jobs, it said.

If the U.S. imposed a 10 percent tariff across the board on Chinese imports and China responded in kind with a similar 10 percent duty on U.S. exports, 947,000 U.S. jobs would be lost.

"Recent U.S. proposals remind me of the adage: 'Be careful what you wish for,'" Evenett said.

The study, published on the economic policy website vox.eu, found that the yuan was undervalued by between 2.5 percent and 27.5 percent.

But economists, including some from China, found that China would benefit from a revaluation, and that appreciation could stimulate Chinese exports and push China into higher-value manufacturing.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Jane Fonda: I'll Be Mad If Murdoch Acquires Time Warner

Wednesday, 23 Jul 2014 22:01 PM

Jane Fonda says she'll be "so angry" at federal regulators if they approve an acquisition of Time Warner by Rupert Murdo . . .

Arizona Inmate Dies Hours after Execution Began; Brewer Calls for Probe

Wednesday, 23 Jul 2014 21:58 PM

A condemned Arizona inmate gasped and snorted for more than an hour and a half during his execution Wednesday before he  . . .

Computer Crash Causes Major Delays in US Passport and Visa Operations

Wednesday, 23 Jul 2014 21:56 PM

The State Department's global database for issuing travel documents has crashed, resulting in major delays for potential . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved