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Protest over export of capital, jobs to China
Washington, July 28: Smaller and medium-sized companies in the US are protesting export of capital and jobs by multinationals to China where wages are much less than in the US, placing them at a competitive disadvantage.
Washington, July 28: Smaller and medium-sized companies in the US are protesting export of capital and jobs by multinationals to China where wages are much less than in the US, placing them at a competitive disadvantage.
The problem is compounded by what they regard as an "unfair exchange rate". Many say the value of China's currency, the Yuan, in relation to the dollar is pegged artificially at 40 per cent below its fair value.
"The tension is most acute in trade associations and other industry groups. It is gaining political momentum that threatens to spill over into coming elections and political debates. It is a delicate issue because the domestic firms are essentially griping about the actions of multinationals, often their biggest customers," reported a business journal said.
The smaller and medium-sized firms are complaining, their bigger brethren are "hallowing out" the US economy. The effect on jobs is "disastrous". One in five Americans experienced a layoff in the last five years. The June unemployment rate has jumped to 6.4 per cent.
Bureau Report