One of the reasons for this trade war between the US and China is the latter's refusal to allow its currency to be dictated by market demands. Like Malaysia and HK, the renmenbi is pegged or have a fixed exchange rate against the US dollar.
The accusations of the US against the Chinese made products may or may not be true. Remember that Mattel, et al are giant US companies. They should take the blame for this since they were the ones who approved the productions of the products, they were the ones who should have looked into the source of the raw materials used for their products. The Chinese manufacturers may have used a different raw material to cut cost during production without informing the US Co., but being a big multinational company, don't they do a random quality control on their finished products before shipping it to their resellers?
Last edited by boybi; August 18th, 2007 at 10:43 AM.