Still, America didn't react.
On Aug. 25, the Commerce Department announced 14 new measures to crack down on trade violations, such as ending certain exemptions from duties.
It did not, however, mention currency manipulation.
Dan DiMicco, CEO at Nucor Corp., the largest U.S. steelmaker, said the 14 measures are important, but the problem with China won't be resolved until the United States takes on currency undervaluation. Here's what he said:
"As long as we continue to let them get away with it, they'll keep doing it."
Six days later, in a trade case filed by the U.S. Aluminum Extrusions Fair Trade Committee, a coalition of domestic manufacturers of aluminum extrusions and the USW, the Commerce Department again squirmed out of dealing with currency manipulation.
Commerce imposed import duties on Chinese aluminum companies because China unfairly subsidized $514 million in aluminum exports to the U.S. in 2009. But Commerce refused to investigate the Fair Trade Committee's evidence that China's currency manipulation functions as an additional illegal export subsidy.
Sen. Chuck Schumer of New York, a sponsor of currency manipulation legislation, said afterward:
"The Commerce Department made its finding while still managing to ignore the elephant in the room, which is China's currency manipulation."
Commerce and Treasury have decided the proper response to China flipping off America is averting their eyes. See no evil.
Yesterday Japan followed China's lead. It bought dollars and sold yen, decreasing the value of yen and increasing the value of dollars. This, the New York Times explained, was "a bid to protect its export-led economy." That's exactly what China is doing.
It's a very public show of contempt for international regulations and for American citizens.
Normally, Americans don't respond passively to contempt. Be normal, America.
Follow Leo W. Gerard on Twitter: www.twitter.com/uswblogger
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