Stop Chinese export dumping

China cheats on world trade rules. It overprices imports into China and under-prices exports from China by keeping its currency undervalued by as much as 40 percent. The predatory policy has created growing animosity, reflected in a bipartisan demand in Congress to protect American manufacturers.

Sens. Lindsey Graham, R-S.C., and Charles Schumer, D-N.Y., have introduced legislation to require the government to impose tariffs and other penalties on countries that undervalue their currencies.

According to The Wall Street Journal, the legislation would apply an "objective test" that would require action including countervailing duties, blocking federal contracts for companies from the offending nation, and bringing a complaint before the World Trade Organization.

Meanwhile, 5th District Rep. John Spratt, a Democrat, has joined 126 other House members in signing a letter demanding that the Treasury Department designate China as a currency "manipulator" and impose countervailing duties against Chinese goods. Rep. Spratt is chairman of the House Budget Committee and co-chairman of the Congressional Textile Caucus.

Such proposals have been advanced every year since 2005. But the previous and current administrations have hesitated to provoke an open fight with China. Now the politics look improved for a response to China's currency game, in part because China has openly rebuffed President Obama's efforts to address the trade imbalance and toughen sanctions in Iran and North Korea.

Retaliation is a double-edged sword. American consumers benefit from the low Chinese prices for which American manufacturers suffer. Tariffs on Chinese imports would raise the cost of living for consumers, but help keep U.S. manufacturing jobs.

Tariffs are one approach worth considering. Warren Buffett, the legendary chairman of Berkshire-Hathaway, has proposed another approach to rebalancing the nation's foreign trade deficit that could address not only China but also oil imports, the other source of the nation's huge trade imbalance.

Buffett calls it the "import certificate" plan. The government would create "import certificates" for every dollar's worth of goods exported. Anyone who wanted to import goods would have to buy the certificates, presumably at a premium as long as import demand exceeds exports. Studies suggest the plan would be legal under world trade laws.

Whatever approach is finally taken, it is clear that the time has come to begin rebuilding the American economy by strengthening investment that creates American jobs. Addressing China's unfair trade practices is an essential part of this mission.