The presidential candidate says he wants to take "counteraction" against Beijing for its trade policies, but U.S. China-hands are skeptical.
Mitt Romney / Reuters
Mitt Romney's investment-banking background and free-market message would seem to make him the candidate of choice for America's business community. Except when he talks about China.
The Republican presidential hopeful sounds more like a card-carrying union member than a former CEO when he outlines his White House agenda for China, urging tariffs and downplaying the threat of a trade war. He extended his tough talk recently to the pages of The Wall Street Journal in a piece epitomizing the protectionist rhetoric he's deployed for much of his presidential campaign.
"Unless China changes its ways, on day one of my presidency I will designate it a currency manipulator and take appropriate counteraction," Romney wrote. "A trade war with China is the last thing I want, but I cannot tolerate our current trade surrender."
Politically speaking, Romney has good reason to attack the economic relationship with the world's largest country. The issue resonates with the conservative activists his campaign has struggled to attract.
But the approach has also tarnished his reputation in the business community. Private-sector leaders aren't panicking quite yet about a leading GOP contender sounding like a Rust-Belt Democrat, but there's a palpable nervousness among them that Romney isn't an ally on what they consider a crucial economic issue.
"It doesn't make a huge amount of sense," said Bill Reinsch, president of the National Foreign Trade Council. "I don't know why anyone would think that on the first day in office, the most important thing to do is to stick it to the Chinese."
Even Romney allies have blasted Romney's position as oversimplified. Jon Huntsman, the former U.S. ambassador to China, who endorsed Romney after exiting the presidential race last month, criticized him during an appearance on MSNBC last week. "When it comes to China, I think it's wrongheaded when you talk about slapping a tariff on day one," Huntsman said. "That pushes aside the reality, the complexity of the relationship."
The political reality is something else entirely. A May 2011 survey by the Pew Research Center found that the most conservative part of the electorate, the 11 percent of registered voters it calls "staunch conservatives," is by far the most eager to apply economic pressure on China. Seventy-nine percent want to "get tough" on China instead of increasing cooperation. That's a dramatic 30 points higher than get-tough sentiment among the "Main Street Republicans" who account for 14 percent of registered voters.
"Republicans tend to have more negative views about China, and the conservative base in particular tends to have negative views toward China," said Richard Wike, an associate director of the Pew Global Attitudes Project.