Obama advocates applying pressure to China, not manipulator label

By Vicki Needham - 09/27/12 02:14 PM ET

President Obama suggested that the United States should continue applying pressure on China while treading carefully in punishing the nation for illegal trade practices over concerns of starting a trade war.

The president said that while trade abuses such as currency manipulation and intellectual property theft should be addressed, the United States should not "go out of our way to embarrass" China.

"What we have found is that when we push them very hard but we don't go out of our way to embarrass them, we get results," Obama told The Plain Dealer in an exclusive interview on Thursday before a speech at Kent State University.

"So we're not interested in triggering an all-out trade war that would damage both economies. What we're interested in is making sure they're treating our workers fairly, and that's what we've delivered on."

Treatment of China and its trade policies has emerged as a top presidential election issue in recent weeks, with Obama and Republican candidate Mitt Romney sparring this week in manufacturing-heavy Ohio.

Although Romney has said he would label China a currency manipulator within his first few days in the White House, the Obama administration has opted for regular, intense meetings between U.S. and Chinese officials.

"But as long as we see continued progress in the right direction when it comes to currency, we'll be satisfied with results," Obama said.

"We're less concerned with rhetoric on the issues."

During the interview, Obama was asked whether not deeming China a "currency manipulator" would allow Beijing to avoid embarrassment.

Instead, Obama suggested that the designation would accomplish little.

"They'd have to push back, and there's no automatic trigger that results from it," Obama said.

"So the only thing that happens is we then have to go back and negotiate with them. The key here is just constant pressure, and that's what we've applied in a much more aggressive way than the previous administration."

Romney's campaign is running a television ad that is critical of Obama for not labeling the country a currency manipulator.

"I'll let Gov. Romney speak for himself when it comes to China, but he does not have the profile or a history of being a fierce protector of American workers and interests vis a vis China," the president said. "This seems to be a relatively newfound religion on his part."