Obama vs. Romney

Essay by andywang93University, Bachelor'sA, April 2014

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Since the China's rapid expansion, the Chinese economy had a blooming growth during the end of 20th century and the beginning of this century. Along with this growth, the currency of Chinese RMB has also grown. Since 2005 to today, it has appreciated 30%. However, the left wing influence and republican presidential candidate Mitt Romney has doubt about this number. They believed the currency of Chinese RMB has a much higher appreciation than 30%. "Mr. Romney says China's leaders are "cheaters" who keep their currency artificially low to make Chinese products cheaper on the world market" (LaFranchi, 2012). Also in the video "China v US-Currency Manipulator & Trade Wars", the short clip showed that Romney also stressed that China rely on the "cheating on currency" to counter American goods (China V US, 2013). In a fact, if the truth is just as Romney said, if China has another growth on their currency, there will be a huge impact on both Chinese economy and American economy.

Net exports are one of China's three main sources of demand for domestic production. As we assumed, there is a higher currency on Chinese RMB, which would cause much less profit to export enterprises. For keep the enterprises, factory works, the sales price has to be improved. In a result, the goods sell to American would have a much higher price than before. Either American companies start to find other original equipment suppliers, or American people need to pay more for these good made in China. On the side of American export, the decrease of Chinese main sources of demand for domestic production will also cause a lower buy power for average Chinese people. Chinese people will has less money spend on American goods. Between the approach of Obama and Romney, I'll support Obama's. "…that...