China revaluation would hurt US jobs – study

* China revaluation, tariff would hit U.S. jobs

* China seen benefiting from appreciation

GENEVA, April 15 (BestGrowthStock) – Extensive outsourcing by U.S.
industry means that a revaluation of the Chinese yuan sought by
many U.S. politicians would destroy U.S. jobs, a study by
independent economists and other experts said on Thursday.

The study, published by the Centre for Economic Policy
Research (CEPR), was published on the day that the U.S. Treasury
had been due to issue a report widely expected to brand China a
as a currency manipulator.

But Treasury Secretary Timothy Geithner decided on April 3
to delay the report, defusing rising tension over China’s
currency between Beijing and Washington. [ID:nN03183056]

The CEPR study, comprising 28 analyses of the issue,
concludes that a yuan revaluation of only 5 percent would
eliminate China’s trade surplus with the world.

But it would only cut the U.S. trade deficit with China by
$61 billion, according to the study, edited by trade economist
Simon Evenett.

A 10 percent revaluation of the yuan would improve the U.S.
deficit by $111.5 billion — not enough to eliminate the U.S.
shortfall with China.

Because so many U.S. exporters buy parts and components from
China, the revaluation would raise their costs, resulting in a
hit to U.S. exports that would cost 424,000 U.S. jobs, it said.

If the U.S. imposed a 10 percent tariff across the board on
Chinese imports and China responded in kind with a similar 10
percent duty on U.S. exports, 947,000 U.S. jobs would be lost.

“Recent U.S. proposals remind me of the adage: ‘Be careful
what you wish for’,” Evenett said.

The study, published on the economic policy website,
found that the yuan was undervalued by between 2.5 percent and
27.5 percent.

But economists, including some from China, found that China
would benefit from a revaluation, and that appreciation could
stimulate Chinese exports and push China into higher-value

(For full report go to )
(Reporting by Jonathan Lynn; Editing by Toby Chopra)

China revaluation would hurt US jobs – study