Thursday, 20 Jan 2011 09:00 AM
By Forrest Jones
The United States can't compete with China and should
consider taxing Chinese imports to level the playing field, says
real-estate mogul and reality TV star Donald Trump.
A tax on Chinese imports would enable the U.S. to repay Chinese
lenders and would create jobs.
On the flip side, just the mere threat of such a tax would force
the Chinese to unveil more favorable trading terms with the
United States.
"The fact is we should be taxing Chinese products, a 25 percent
tax. We owe them money, we'll pay them back very quickly out of
this tax," Trump tells CNBC.
"What the tax will do, it'll elevate what they've done with the
phony manipulation, with the manipulation of the currency. And
you'll be selling toys and lots of other products that are made
in North Carolina and Alabama and Iowa."
Currently, China has no respect for the United States or its
leaders and until it does, its business sector will have the
upper hand via Chinese exchange-rate policies, he says.
"It's almost impossible for companies to compete because of what
they've done in terms of the manipulation of their currency."
Chinese President Hu Jintao and U.S. President Barack Obama
recently announced $45 billion in business deals between the two
countries, including a $19 billion deal for 200 Boeing
airplanes.
"I absolutely believe China's peaceful rise is good for the
world, and it's good for America," say Obama, according to the
Associated Press.
For Trump, however, the deal will bring short-lived benefits, if
any.
"They're ordering some Boeings. That's peanuts. They're starting
their own airline manufacturer," Trump says.
"I hate to say it but Boeing won't have a chance because of what
they do, because of the way they act."
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