Reuters has reported that a bill about to be signed by Obama will allow existing tariffs on imported goods from China to stay in place after they were threatened by a court ruling. At a time when there seems to be little bipartisan support for anything, it is surprising that this piece of legislation enjoys popularity from both sides of the aisle. Certainly, there is a broad perception in the U.S. that China does not play by the rules, that the U.S. engages in free market capitalism while China engages in mercantilism.
Unfortunately, like all disagreements, the truth is not black and white, but shades of gray. Continue reading