Hacker News Reader

Comment by adt2bt | Hacker News Reader

Does anyone have an idea about the expected global response to the Secretary of the Treasury labeling China a currency manipulator?

View on HN

If it works out to impeding trade with China in anyway it just acts to slow our economy. We are not going to become more competitive with 1+ billion people who are willing to work without any labor protections by saying we won't do business with them. We're just sanctioning ourselves from essentially the world's manufacturing depot.

It could result in jobs for locals - however then investment needs to be made to support the manufacturing, educating skilled workers, etc.

In the sense that we would be doing to ourselves what we did to Cuba.

Suppose you're right, however the U.S. is in a much different situation than Cuba resource wise - education, networks, investment capital, etc.

And who exactly would be importing all these cheap Chinese goods then?

The rest of the world, whose citizens will see a net increase in buying power and thus wealth, because of the identical supply but reduced demand.

So they'll get richer overall and a part of them will lose their jobs.

http://www.economist.com/news/asia/21709923-there-risk-trade...:

> He promises to label China a currency manipulator, but the only consequence of that would be that America would have to engage China in talks on the currency’s value, which would have no practical effect.

The downside is pissing off China, which the US needs to get along. There is no upside -- China won't change its behavior because of a label.

Chinese officials won't be pissed off. They understand politics.

The difficulty will be in keeping a straight face during talks designed to go nowhere.

> Chinese officials won't be pissed off. They understand politics.

Whether or not they are genuinely pissed off, they act offended at the bargaining table and make negotiations more difficult than they might have been. They have been known for doing that kind of thing in the past because it plays very well with the people at home.

China had that label before but it was stated in public hence the previous private monetary talks between US, China, NK, etc..its just now out in the open

Good question. How did they react after the Clinton Administration put them on that list?

Secretary of the Treasury is a member of the President's cabinet, so I'm sure Trump will appoint a willing implement.

Reply on news.ycombinator.com