Chinese Currency Manipulation

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China has deliberately manipulated the value of its currency for a long time to boost its exports. Due to its economic sovereignty and technological advancement, China has dominated many markets forcing most of the local industries to close shops. Comparing its cost of production with that of the United States, it is clear that the move employed by Chinese in devaluing the Yuan presents various economic implications; and more so, threatens the job opportunities for Americans. It has been reported, in various instances, that China has been dumping most of its products such as steel in the markets of India and US (Howard, 2016).

The repercussions presented by cheap Yuan creates a competitive advantage for China regarding production efficiency. According to Howard (2016), the sustainability of jobs within an economy is measured by the ability of the nation to industrialize and promote its export volumes. However, with the prevailing artificial devaluation my China, the United States cannot be able to sustain the requirements of the production; most of the Americans prefer to buy low-cost products imported from China. Consequently, the local industries are not given a chance to sustain the internal job market.