But a trade war could be damaging to president Obama's goal to double US exports by 2014 since China is the country's third largest export market. Remember, US exports to China surged 542 percent from 2000 - 2011.
In an editorial for Caixin Stephen Roach — Yale professor and former chairman of Morgan Stanley Asia — imagines what would happen if Romney were to become president and the US were to pull the trigger, setting in motion a trade war with China.
We summarize here:
If Romney were to take office and dub China a currency manipulator, the charge would necessarily under the Omnibus Trade and Competitiveness Act of 1988, kick off "immediate high-level negotiations between US Treasury officials and their Chinese counterparts at the Ministry of Finance. Not surprisingly, the negotiations stall and both parties blame the other in vitriolic press releases."
In early February after the first State of the Union address, The Defend America Trade Act of 2013 (DATA) will be signed into law on President's Day. The act will be "modeled after the currency manipulation "remedies" of countervailing tariffs first proposed by Senators Charles Schumer and Lindsey Graham in 2005" and China will be seen in violation of the new statute.
Negotiations between president Romney and Chinese president Xi Jinping and premiere Li Keqiang will fail and the US will impose a 20 percent tariff on all Chinese exports to the US.
This would cause plant shutdowns in China and Beijing would declare this "to be an act of economic war" and would file a complaint with the World Trade Organization (WTO).
China would in turn impose 20 percent tariffs on US exports to China, which would "hit growth starved America right between the eyes." And Wal-Mart would increase average price increases of 5 percent and attribute that price hike to increase in tariffs on imports, other retailers would do the same and the American consumer would "hunker down further in response."
"The stock market is hit by the trifecta of a perfect storm — pressures on profit margins and expectations of lower growth and higher inflation. The bond market is clobbered by the sharp deterioration in inflationary expectations and by the realization that the Federal Reserve, with its zero interest rate policy, is seriously behind the curve."
In response Washington "passes an amendment to DATA — upping the just-imposed countervailing tariffs on China by another 10 percentage points".
China, the biggest holder of US debt, retaliates by not buying any more US debt. "Long-term interest rates spike, and within two weeks yields on 10-year Treasuries pierce the 7 percent threshold. At the same time, the dollar plunges and the US stock market, which had already corrected by 20 percent in the first half of 2013, falls another 10 percent by the end of August."
China also says it might consider selling US treasuries if it has to.
The US turns to foreign producers that are more expensive than China, delivering a blow to the country's middle-class and by the fall of 2013 there is "little doubt of the severity of renewed recession." Meanwhile, Chinese economic growth slips to below 6 percent and the country prepares for another massive stimulus.
On the news that Defense Secretary Leon Panetta's lifted the military ban on women in combat, GlobalPost took a look at women's wartime roles around the world.
Women combat afghanistan
Female Afghan National Police cadets train at the shooting range of the Kabul Police Academy on November 14, 2012 in Kabul, Afghanistan. The Kabul police academy graduates 500 male officers each year, after 4 years of training, and around 30 women after 6 months of training.
- [Daniel Berehulak/Getty Images]
Women combat australia
Australian soldiers Captain Veena (Big Red) Cochrane (R) and flight officer Christine Edey (L) prepare to board a Sea King helicopter at Henderson International Aiprort near Honiara on July 25, 2003. While Australian women can not serve in many positions qualified as "direct combat," they can can serve in combat units.
- [TORSTEN BLACKWOOD/AFP/Getty Images]
Women combat canada
A Canadian female soldier takes part in a training exercise in July 2007 at the Joint Multinational Readiness Centre (JMRC) near the southern German town of Hohenfels. Since a 1989 tribunal order, women have become more fully integrated into the Canadian military, serving in combat and commanding large infantry units.
- [SASCHA SCHUERMANN/AFP/Getty Images]
Women combat china
Trainee bodyguards — most with previous military experience — listen to instructions at the Genghis Security Academy in Beijing on Jan. 17, 2013. As of 2008, around 7.5 percent of China's People's Liberation Army personnel were women, although thier work is largely limited to non-combat roles.
- [ED JONES/AFP/Getty Images]
Women combat colombia
Female soldiers take part in a training on May 14, 2009 in Tolemaida military base, Colombia. The first sixty-two women to become cadets ever in Colombia were taking combat training, after which they would be in a position to command troops.
- [RAFA SALAFRANCA/AFP/Getty Images]
Women combat germany
Two female German soldiers from the Quick Reaction Force (QRF) at Camp Marmal in Mazar e Sharif in Afghanistan on June 30, 2008. Women have served in German combat units since a 2001 European Court of Justice ruling.
- [MICHAEL KAPPELER/AFP/Getty Images]
Women combat israel 1
Israeli Army female soldier Yael Suissa (L) competes in a push-up competition with US Army sergeant Aaron Thomas Feb. 4, 2003 during a joint US-Israeli military exercise in the Negev desert in southern Israel.
- [Alberto Denkberg/Getty Images]
Women combat israel 3
An Israeli soldier from the Karakal Battalion in action during training on Dec. 14, 2010. The Karakal is a mixed-sex battalion formed in 2004, with men and women serving together in this combat unit, based in the Negev desert on the borders with Egypt and Jordan. Israeli women, like men, are drafted and can serve in combat.
- [Uriel Sinai/Getty Images]
Women combat korea
Female cadets participate in basic military training for reserve officers at military camp on Jan. 19, 2011 in Seoul, South Korea. The Ministry of National Defense in South Korea agreed two years ago to admit women into its college-based Reserve Officers' Training Program for the first time since the program began in 1963. Women can serve in combat in the South Korean military, and there have even been female combat generals.
- [Park Jin-Hee - Pool/Getty Images]
Women combat pakistan
Pakistani Air Force cadet Nadia Gul, 21, stands in front of a mural at the Pakistani Air Force Academy Oct. 6, 2005, in Risalpur, Pakistan. Gul, the top student in her class of 64 at the academy, was one of only eight female cadets in training to be fighter pilots in the Pakistani Air Force. Pakistani women are able to train and serve in combat roles.
- [John Moore/Getty Images]
Women combat uk 2
Cadets take part in the Sovereign's Parade at the Royal Military Academy at Sandhurst on Dec. 14, 2012 in England. The parade marks the completion of 44 weeks of training for 200 young people who will be commissioned into the British Army and the armies of 13 overseas countries. Senior Under Officer Sarah Hunter-Choat became the fourth woman in the Royal Military Academy's history to receive the prestigious Sword of Honour which is awarded to the best Officer Cadet on the course. British women have served in combat roles at various points in British history, including World War II and the Gulf War.
- [Peter Macdiarmid/Getty Images]
Women combat us 1
Members of the US Naval Academy Freshman class low crawl under obstacles at the Naval Academy in Annapolis, Maryland on May 17, 2005.
- [Mark Wilson/Getty Images]
Women combat us 2
A US woman soldier of the 3rd Infantry Division practices life-saving skills during a combat lifesaver course in Camp Taji, northwest of Baghdad, Aug. 13 2005.
- [LIU JIN/AFP/Getty Images]
Women combat us 3
A US soldier from the 2nd Battallion 12th Field Artillery Regiment, 4-2 SBCT, searches an Iraqi woman on Feb. 25, 2008, as she arrives at an improvished clinic set up by the US military 20 kms northeast of Baghdad.
- [PATRICK BAZ/AFP/Getty Images]
Women combat us 4
Army First Lt. Alisha Vanghn (L) is greeted by her friend First Lt. Shandale Hall (R) during a welcome home ceremony for 330 soldiers from the 3rd Infantry Division on Jan. 7, 2006 at Fort Stewart, Georgia. Hall and Vaughn served together in Iraq, but returned home a month apart.
- [Stephen Morton/Getty Images]
Women combat us 5
Two US Army soldiers, Private Miranda Nichols (L), 18, from Georgia, and Private First Class Leysha Williamson (R), 27, from Texas, man a foxhole during a dawn defensive alert south of Baghdad on March 30, 2003.
- [ROMEO GACAD/AFP/Getty Images]
Women combat us 6
A US soldier stands amid Shiite Muslim youths during a patrol in September 2003 in Sadr City, home to the largest Shiite community in Baghdad.
- [RABIH MOGHRABI/AFP/Getty Images]
Women combat us 7
US Army chaplain Cpt. Julie Rowan comforts the mother of a woman who died of burn wounds on Sept. 10, 2005, at the combat hospital at Baghram Air Field, Afghanistan.
- [John Moore/Getty Images]
Women combat us 8
A ground crew member sits in the co-pilot's seat of a KC-135 Stratotanker aircraft as she helps conduct a maintenance check during Operation Desert Shield.
- [USAF/Getty Images]
Women combat us 9
A US Military Academy graduate smiles after receiving her diploma during commencement exercises on May 31, 2003, in West Point, New York.
- [Chris Hondros/Getty Images]
Women combat us 10
Female Marine Corps recruit Ginger Callahan, 20, of New York fires on the rifle range at the United States Marine Corps recruit depot on June 21, 2004 in Parris Island, South Carolina.
- [Scott Olson/Getty Images]
Women combat us 11
Former Iraqi War POW Shoshana Johnson (R) listens as the church choir sing a song to honor her at the First United Christian Church on June 6, 2003 in Los Angeles, California. Shoshana, the first black female POW, was captured and shot in the ankles during the US invasion of Iraq on March 23 near Nasiriyah along with six other US Army personnel from the El Paso-based 507th Maintenance Company.
- [David McNew/Getty Images]