Sinomania!

Columnist Paul Krugman of the New York Times says the US government needs to "take a stand" against China by declaring that Beijing "manipulates" its currency (Renminbi) and slap big extra tariffs on Chinese imports. Krugman began the year with the same message and seems willing to stake his reputation on his quixotic quest. Frankly the US has already taken a stand on the issue of the Yuan/Dollar exchange rate and been stood down. Further Krugman's simplistic explanation of alleged Chinese "mercantilism" is surprising from a Nobel Prize winning economist. To blame global economic imbalance on imports of Chinese goods is absurd.

To declare China a currency manipulator while ignoring Tokyo's support of the Yen and other currencies pegged to the US dollar including oil exporting nations and whole regions (the Caribbean, etc.) is a selective and hostile act. And if the Yuan is so undervalued why are the EU, Brazil, Australia, and other countries with important China trade not joining the USA in a stand against China?

Millions of Americans are already cutting back on what they buy and trying to make do with less. Do we need the cost of everything to go up because of additional tariffs on Chinese goods? Does Krugman think stagflation will help the American economy recover?

The Sunshine State's new tourism marketing program Visit Florida is aggressively pursuing Chinese tourists - the fastest growing group of foreign visitors to the USA. This year Chinese tourist numers are expected to grow 15% overall and Florida wants a share. The state has an office in Shanghai and numerous programs to bring in more Chinese. It is anticipated that within 10 years China will be the world's number #4 source of foreign travelers.

Florida's efforts are in contrast to the damaging and divisive actions by their own Congressional Representaton such as Ileana Ros-Lehtinen (R-FL) Republican Congresswoman from the 18th District that includes Miami. Visit Florida should consider whether their cause is helped each time Ros-Lehtinen sponsors legislation or makes an official statement against "Communist China".....

The US-China Economic and Security Review Commission of the US Congress released its 2009 annual report today. Timed to match Obama's return from China, the assessment is unusually bellicose in its condemnation of all things Chinese.

The report not only blames China for the current financial crisis but hints that China will be responsible for the next one! The Commission dismisses the onesie-twosie approach with WTO trade disputes as too "industry specific" and "time consuming" and for not addressing "broader issues." Instead the Commission warns "the U.S. government will have to find alternative venues." The only such alternative suggested, however, is the continual demand that China appreciate its currency.

The report's 381 pages feature scary examples where China threatens to overtake the USA supported by testimony and research the Commission paid for from organizations such as the Heritage Foundation and defense contractors well known for their established anti-Beijing views.

The Commission itself is headed by a who's who of anti-China "bomb throwers" including Larry Wortzel of the Heritage Foundation appointed by disgraced former House Speaker Dennis Hastert. Wortzel appears to be a permanently entrenched holdover from the W years - after two terms he can no longer be Chairman but is now Vice Chairman until end 2010. What the Commission and Congress cannot face is that no amount of sabre rattling will force a "Plaza Accord" with Beijing. In its search for "alternative venues" with China perhaps Congress should consider cooperation and collaboration....

What passes for discussion on China in the USA is forever tinged with racist disdain for Chinese and by seeing China only through the prism of Tiananmen Square 1989 or the 1914-era eyeglasses Dr. Kissinger stole from Chairman Mao's study. This piece by a pundit at The Hill, a newspaper of the U.S. Congress, is a typical example of muddled thinking on USA-China relations.

The author sees convergence with China - already occurring economically - requiring the USA to "yield" sovereignty. But why? Washington still has the upper hand with Beijing militarily and financially still - yes China buys the Federal Government's debt but they hold that debt in our currency which they need to settle their trade and pay for their oil imports. For Americans why not use this moment to craft a real capital T treaty with the Chinese instead of pipe dreams to revive the British Empire?

The first China bash talking point in the US presidential election cycle is circulating and it's a particulary goofy one relating to the renewed interest in drilling for oil on the continental shelf off the eastern seaboard. China, according to Republican Congressmen, is already drilling there off Cuba! None other than Vice President Dick Cheney has refuted this claim but it is widespread on talk radio and TV - Sinomania! first heard it on CNN a few days ago. Unfortunately, like Obama's Muslim past, it is a fabrication that repeated enough is taking hold in minds willing - and wanting - to believe it.