China Protectionism Equals Votes

US Treasury Secretary John Snow's failure to convince China to float its currency has been met with dismay by the Bush administration. As American unemployment grows in the manufacturing-heavy swing states like Pennsylvania and Michigan, Bush is looking to place blame elsewhere before he has to compete in the 2004 presidential election. China seemed like a good target – the US has a burgeoning trade deficit with China, and American employers can easily blame cheap labor across the Pacific for the disappearance of jobs. However, assigning blame too quickly ignores the potentially destabilizing effects of floating China's currency on the massive Chinese economy, which would assuredly spill over into other nations. Furthermore, analysts say, China has a large role to play in negotiations with North Korea. The US should be careful about alienating a political and economic partner in Asia while it attempts to deal with North Korea's potential nuclear capabilities. – YaleGlobal