Poll: Americans view China as a threat to economy

According to a recently conducted poll by the Pew Research Center, almost  half of all Americans believe that China is now the world’s leading economic power. (It’s actually No. 2, still far behind the U.S.).

This perception is not hard to understand. “Made in America” is not heard much any more and so many goods, from cheap toys to expensive laptop computers, carry the “made in China” label.

Some U.S. politicians and manufacturers claim that China’s climb is at the expense of the U.S.

Chinese President Hu Jintao may be greeted this week with Congressional legislation sponsored by senators like Bob Casey (D-PA).  He is drafting  legislation that would exact harsh penalties on nations like China that manage their currency in a way that hurts U.S. trade.

Critics like Senator Casey assert that China’s currency manipulation keeps Chinese goods in the U.S. artificially cheap, while making U.S. exports to China more expensive.

On the flip side, the Chinese are concerned massive purchases of bonds by the US Federal Reserve are keeping interest rates low and creating inflation in China.

Caution should be exercised by Congress.   The Smoot-Hawley Tariff Act of 1930 precipitated the Great Depression.