Both President Obama and Mitt Romney have spoken about getting tough with China over its’ unfair trade policies such as artificially undervaluing its’ currency the Yuan relative to the U.S. dollar, which gives it an unfair advantage in the dog eat dog global economy.
But I am forced to wonder whether such harsh rhetoric will actually lead to meaningful action when the heat of electoral politics has faded. I have my doubts.
Presidents can say whatever they want on the campaign trail, but Congress ultimately makes the laws in this country. It would be naïve to believe that there isn’t a pro-China lobby somewhere on Capitol Hill that is pressuring our legislators into not turning either candidates’ rhetoric into meaningful action.
Sure, Congress may produce some watered down bill on trade with China, but it will be largely fangless out of fear of upsetting our great Chinese lender.