This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Romney Will Lose in China 'Cheater' Debate

A passing glance at Romney's trade policy with China in his "Plan for Jobs and Economic Growth" reveals a mix of reasonable and antagonistic headlines. The more negative ones include "Impose Targeted Tariffs or Economic Sanctions" and "Designate China a Currency Manipulator and Impose Countervailing Duties."

The currency manipulator line is a common one that Romney has used on the election trail, but it is also popular among Democrats.

It may be empty rhetoric.

"Labeling China as a currency manipulator is probably one of the political things out there, but it's not really clear what the appropriate level for the yuan is," said Michelle Gibley, director of international research at Charles Schwab. "To think that by forcing China to appreciate their currency that suddenly our trade balance with them will equalize is probably a mistaken assumption."

In other words, the United States is the largest consumer in the world, so if we aren't buying our toys from China, we'll find them somewhere else.

On the other hand, Romney has highlighted some serious concerns in his trade policy with China, like "Protect and Pursue Legal Rights" and "Improve Enforcement at the Border," which calls out "unscrupulous exporters in China and elsewhere" to evade measures the United States imposes in response to unfair trade practices.

"The business community that has traditionally been the biggest backer of U.S.-China relations, because of Chinese policy actions -- intellectual property, national champion industries in China -- has caused the business community to pull back and want the U.S. government to play more of a role," said Thomas Fingar, former chief of the China Division at the U.S. State Department.

Fingar added that the business community recently has deferred to the government to "play the heavy" to go in and thump the Chinese on the head so it could continue to do business without the broader worries of intellectual property theft and other illegal actions by Chinese firms.

This part of Romney's plan -- to punish Chinese companies for unfair and illegal actions -- suggests the Republican nominee's willingness for government intervention to mix with "free enterprise" so as to promote an open market that provides more a favorable investment environment for American firms.
2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CEO $100.41 0.00%
YOKU $27.33 0.00%
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs