Currency Manipulation

Currency manipulation is an illegal practice whereby a nation artificially sets exchange rates in order to gain an unfair advantage in the global trading system.

Many U.S. trading partners seek unfair advantages by keeping the U.S. dollar artificially high, and their own currencies artificially low, effectively subsidizing exports and enacting tariffs.

By some estimates, China’s Yuan is undervalued by as much as 40 percent in comparison to the U.S. dollar.

Articles & Statements
Obama’s Yuan Calls May Cause Collision With China Bloomberg, Nov. 6, 2008
China Rejects Obama Claims of Currency Manipulation Voice of America News, Oct. 30, 2008
Stabenow, Bunning, Bayh Introduce Legislation Geared Toward Ending Currency Manipulation by China April 3, 2008
Chinese Currency Manipulation Puts Stranglehold on Middle Class The Hill blog, Nov. 1, 2007

“Buy, Buy American Pie”, a parody by the Capitol Steps, is a funny yet sobering short video of Uncle Sam pointing out the problems with buying cheap products from China.