This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Romney Will Lose in China 'Cheater' Debate

Stocks in this article: YOKU CEO

Government intervention in business is an issue Romney has tiptoed around among conservatives and tea party supporters in his own party. The former Massachusetts governor has blamed the president for expansion of government during his term -- bailouts, Obamacare, picking so-called winners and losers in the energy sector -- which those Republican supporters have blamed for the country's current $16 trillion debt.

It's not uncommon for the government to step in on behalf of American businesses, in the case of China. Obama has filed eight cases against China at the World Trade Organization in his term.

It may be a wise decision in order to protect American enterprises. Romney could benefit among voters by promoting government intervention similar to that which Obama and virtually every American president before him has taken, and note that it's a necessary step to eliminate so-called cheating and help mature the investment relationship between the U.S. and China.

A complaint among Americans is that U.S. firms have moved their operations to China, which has hurt jobs here -- Romney has rolled out blame in the past week against Obama's policies for allowing this to happen.

Charles Schwab's Gibley said the mood could be shifting.

"You're starting to see some companies move out of China and potentially back to the United States, just because the wage differential -- that ability to arbitrage the difference in wages is narrowing," said Gibley.

The costs of manufacturing overseas have risen, particularly in China as its yuan currency has strengthened against the U.S. dollar.

Economic reforms that have evolved in China since the end of Mao Zedong's leadership came with influence by the United States. Deng Xiaoping, who eventually became the leader of the Chinese Communist Party, understood that a shift from the Soviet-Stalinist model of socialism to a market economy was in the country's best interest.

Stanford's Lewis said Romney could focus on collaborative innovation -- technology transfer and technology sharing in which Chinese and U.S. companies work together to advance technology.

"Let's face it, the U.S. has a very substantial technological lead on China ... but we are moving towards much greater integration of our two economies," said Lewis.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs