Tuesday, October 31, 2006
In Washington the has been a proposal put fourth that there needs to be a change to China and the two major trade disputes. The trade disputes have to do with the intellectual property protection and Washington's view that the China's currency is undervalued. The annual report by the U.S. - China Economic and Security Review Commission is dealing with the problem with Beijing's artifically low currency is making China's goods cheap in the U.S. The currency manipulation is being defined economicly as as illegal export subsidy which will allow for harsh penalties agaist those offending country's export goods. The U.S. Congress is going to push at the World Trade Organization for what is said was a failure to enforce intellectual property rights. For example in the U.S. there has been many cases in which China has taken up the act of pirating movies and other goods in their country and selling them back here for a cheap price. China has implemented a policy to crack down on those who are pirating goods to other countries. The results from these pirating activities are making a decrease in the number of jobs in theU.S. In the upcoming elections on November 7th there will be a big influence on the U.S. trade policy, in which the top critics of Beijing's economic practices have come from both parties; but the Republicans have been more inclined to support Bush's free trade initatives than the Democrats. Lawmakers have made it clear that in the next year they will have to change there current policies.