August 26, 2003 8:48 AM

Is China's currency causing U.S. job losses?
Posted by Jason Butlerat 8:48 AM

Today's New York Times reports on how China's refusal to float the yuan affects the American job market.

The issue is the value of the yuan, which the Beijing government pegs to the dollar rather than allowing it to float in world currency markets. Critics say that keeps the yuan undervalued by as much as 40 percent, enabling Chinese manufacturers to flood the United States with products at prices that homegrown companies cannot match.

Though Chinese exports have been growing at the expense of American manufacturing jobs for years, the volume of the complaints has risen with the unemployment rate — and with the approach of national elections next year. And no matter what it does, the White House is on treacherous ground.