WASHINGTON -- "The Obama administration may be getting tougher with China on trade on behalf of U.S. producers seeking to reduce foreign competition, but its approach in dealing with Beijing on the thorny currency issue remains patient diplomacy, especially because China's currency policy does generate huge cost advantages for American consumers and businesses purchasing their products.
Money Morning submits: By Jason Simpkins It seems like every six months the debate over China's currency, the yuan, reaches a fevered pitch: The Washington bureaucrats threaten to label China a "currency manipulator" and Beijing threatens to dump its U.S. debt holdings.
The most shocking part of the third debate between President Barack Obama and Republican nominee Mitt Romney on Monday was how little attention they paid to China. I counted an hour and 15 minutes before the subject even came up in earnest. That’s not to say the other topics discussed – terrorism, the Middle East, Afghanistan – aren’t important as well. But looking out over the next several decades, the rise of China to superpower status is, in my opinion, the single most important foreign policy challenge facing the United States.