Obama's export goals: Will China trade be a sticking point?
Unless the US-China trade gap is seriously addressed, some economists say, Obama’s goal of 2 million new trade-related jobs will be unattainable.
China 330, US 88.Skip to next paragraph
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Those numbers are not the score of some hotly contested international sporting event, but the value of the goods – in billions of dollars – that each country sells to the other.
That yawning gap between the two will loom large as President Obama pursues a goal he announced in his State of the Union address: doubling US exports and creating 2 million trade-related jobs in the next half decade.
China may not be America’s largest trading partner, but its economy is the fastest-growing major economy in the world. Unless the US-China trade gap is seriously addressed, some economists say, the goal of 2 million new trade-related jobs will be unattainable.
“You can’t do it without cracking the Chinese market, and you can’t crack the Chinese market without doing something about China’s currency manipulation and trade barriers,” says Peter Morici, a professor at the University of Maryland’s Robert H. Smith School of Business in College Park. “You can talk, but without some tough action, you’re not going to get much done.”
So far, however, the Obama administration is carefully skirting any direct confrontation with China.
On Thursday, Commerce Secretary Gary Locke unveiled a three-pillar plan for reaching the president’s goals. In a speech outlining Mr. Obama’s National Export Initiative, Secretary Locke said that the administration would increase export financing, beef up government assistance to US exporters, and bring tougher enforcement to trade pacts.
The program, Locke said, would address an “economic blind spot” that in recent years has allowed other countries to “chip away” at America’s international competitiveness. But he did not cite any particular countries as responsible for that chipping away.
That may change this weekend, when Treasury Secretary Timothy Geithner is to meet in Canada with other finance ministers for the wealthy countries in the Group of Seven. He’s expected to address the issue of China’s undervalued currency.