"Manufacturing represents a mere 11% of the US economy and only employs 12 million people. Imports won't change with a re-evaluation of the yuan because the US no longer manufactures what it imports. Does the pressure to revalue the yuan make sense?"
David Fuller's view Thanks for the update. I knew the USA's domestic manufacturing percentages were low but did not realise they were that low!
US political pressure on China to revalue the yuan only makes sense for those seeking populist support by blaming responsibility for domestic economic problems on another country. In other words, it is disingenuous.
While certainly not beyond criticism on some policies, not least the transfer of technology, it is not China's fault that US multinationals wish to manufacture in China and other countries. If China revalued the renminbi by 50% tomorrow, few manufacturing jobs would return to the USA. Instead, American companies would transfer them to another low-cost centre.
All countries are currency manipulators to a greater or lesser degree and the USA has not been shy in the race to push its currency to the bottom.