How Romney’s tough stand on China could play out as presidentRepublican presidential contender Mitt Romney is promising to get tough on China to help American workers, but his plans could backfire.
Mr. Romney is pledging, on his first day in office, to designate China a currency manipulator, a step no administration has taken against any country for 18 years.
That could, eventually, lead to tariffs punishing China for policies that Americans believe unfairly keep Chinese products cheap, hurting U.S. manufacturers. Tariffs could trigger a trade war with a country that is the fastest-growing market for U.S. exports. Even if they don’t, the designation would instantly set back relations with Asia’s emerging superpower.