Obama should impose a tax on dollar-yuan conversions in an amount equal to China's currency market intervention divided by its exports -- about 35 percent. That would neutralize China's currency subsidies that steal U.S. factories and jobs. It is not protectionism. Rather, in the face of virulent Chinese currency manipulation and mercantilism, it's self defense.

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Professor Peter Morici, of the Robert H. Smith School of Business at the University of Maryland, is a recognized expert on economic policy and international economics. Prior to joining the university, he served as director of the Office of Economics at the U.S. International Trade Commission. He is the author of 18 books and monographs and has published widely in leading public policy and business journals, including the Harvard Business Review and Foreign Policy. Morici has lectured and offered executive programs at more than 100 institutions, including Columbia University, the Harvard Business School and Oxford University. His views are frequently featured on CNN, CBS, BBC, FOX, ABC, CNBC, NPR, NPB and national broadcast networks around the world.

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