BBC News - US Congress committee approves China sanctions bill My personal feeling is that China (and other low cost manufacturing countries) have masked the West's true inflation. I am presuming that President Obama and his Treasury men aren't making cheap political points and consider that the ensuing inflation will be better for the the US than access to low cost products. I heard once that if Walmart was a country, it would be China's fifth biggest export partner. I presume that the Treasury don't care about Walmart customers, or the fact that China should increase the cost of its loans to the US. You would also expect your interest rates to have to go up as well. This could be a defining moment of the Obama Presidency.