Congress' tough stance could end up increasing U.S. sales to China.
By Staff Writer|May 01, 2007 at 08:00 PM
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The Democratic takeover of Congress last November is leading to tough talk about U.S./China trade relations and fears among some business leaders of harder times dealing with China and its beckoning market. But at least some observers suggest that all the bluster on Capitol Hill may actually be a blessing in disguise for American businesses.Some observers think that China cannot afford a trade war at this point and the more the U.S. threatens, the more China may feel compelled to placate. That being the case, all the bluster may have an unintended consequence. “It’s possible,” suggests Sallie James, a trade policy analyst at the Cato Institute in Washington, “that China could respond to Congressional threats by going on a buying spree in the U.S., or by making another token revaluation of the yuan.”
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