Like all American politicians they seem to me to look to blame others rather than looking internally into what has gone wrong.
While billions of dollars of chines companies were filling walmart, producing the auto parts, machinery and equipment used for the srvice industry and those of us industry could see the destruction the low priced Chinese goods would cause, legislators turned a blind eye or lacked the foresight of the growing trade imbalances.
IMO a Chinese counter argument is that the yuan has been and contiues to be pegged to the US $. Nothing has changed except the realization while we saved you consumed. It is not anymore about manipulation now then before when so many American companies made so much profit and so many Americans lives such lavish lifestyles they couldn't afford.
You bought our goods on money we lent you and now you want us to take much less in return for what we lent.
IMO some trade sanctions may occur, but hitting Chinese with across the board import duties will be highly inflationary on those who can least afford it ... the propaganda machine will be working triple time to justify that.
The only reason the US$ has no dropped is it is no ones interest for that to happen, but I can not see the justification of a country who has done everything right for taking less. Remember many people in China still live on 1.00 a day ... all American fat cats better get use to living on much less than they have today and until American politicans begin taking the sound steps needed to correct system flaws China will continue to push for the US and other debt laden countries to get there own house in order.
Unlike our system where getting people who are broke to spend more through reckless lending practices China and other fiscally strong countries will avoid providing additional dollars to continue finance the spending orgy in the US.
I prefer your scenario, but as the number 2 economy in the world without the incredible debt burden of the number 1 economy China has much more influence than America thinks.
China need only spread around more of their accumulated wealth by working with developing countries, buying their companies and providing them jobs ... only if they do not practice the same insane western methods of economics our electroal system has fostered.
As always a delight to respectfully debate issues ... best regards to all
the prophet
