Critics blame Beijing for holding down the value of its currency, the renminbi, in order to boost China’s competitiveness in international trade at the expense of other countries.

Republican presidential candidate Mitt Romney vowed during the campaign to brand China a currency manipulator, a potential step towards trade sanctions. The Obama administration, however, has avoided this designation.

he Treasury Department said in its report Tuesday that the renminbi has appreciated by 12.6% against the dollar when adjusted for inflation since June 2010. Nevertheless, it added that the renminbi “remains significantly undervalued, and further appreciation… against the dollar and other major currencies is warranted.”

Treasury said that for China to secure sustainable growth going forward, it needs to increase domestic consumption. Additional renminbi appreciation is a “critical part of this process,” the report said, as a stronger currency increases the purchasing power of Chinese households.

The oft-delayed report was originally scheduled to be published last month. 

Since China joined the World Trade Organization in 2001 and gained full access to American markets, the AFL-CIO claims that over 50,000 factories in America have disappeared along with more than 6 million manufacturing jobs. For these reasons, AFL-CIO President Richard Trumka in the film urges people who pick up a product Made in China to “think about your relative that just got laid off or the factory that just got shut down. Think about the school that is doing with less because the manufacturing base has gone and the tax base has left. Think about the lower income that you’re receiving now because we’re not making products, and we’re not buying our own products.”

And here’s something else former Canadian Minister of Parliament David Kilgour wants you to think about as you consider your next Made in China purchase: That product may well have been made by prison labor. To emphasize his point, Kilgour in the film relates this darkly comic and well-documented tale about Charles Lee, an American citizen arrested in China and detained in one of China’s forced labor camps for three years: “When Lee was finally released thanks to pressure from the American people, he came back to New Jersey, and he was in a store, and he saw these big [Homer Simpson] slippers that he’d made in the work camp.”

Beyond the issues of jobs and human rights, there is also the prodigious air, soil, and water pollution generated annually by China’s factory floor. In fact, a study conducted by the World Health Organization found that China now has 16 of the 20 most polluted cities in the world.

Perhaps most unsettling is the well-documented tendency of at least some unscrupulous entrepreneurs in China to alter their products with toxic ingredient substitutes as a means of cutting costs and boosting profits. Well-publicized scandals to date have included the spiking of both pet food and baby formula with deadly melamine and the blood thinner heparin with lethal oversulfated condroitin sulfate. We’ve also seen lead paint in toys, antifreeze in toothpaste, baby cribs with choking hazards, tainted drywall, the list goes on and on.

The problem as Forbes columnist Gordon Chang describes it is “a political system that does not punish manufacturers for bad products. And it’s because it’s the nature of the political system. The Communist Party does not allow independent prosecutors, doesn’t allow a free press, doesn’t allow people to complain about bad products.”

Given the chronic failure of America’s politicians to confront China on these issues, in my opinion, if more consumers would pause at the Made in China label, that would be all to the good. As Judith Samuelson suggests at the end of the film: “I think that at every level, people could boycott to some extent, and there would be a shot heard around the world.”

Peter Navarro is a business professor at the University of California-Irvine. He wrote, produced, and directed the documentary “Death By China.” For for more information go here.  

• More than 60 percent of Chinese consumers are willing to pay more for Made in USA goods.
• Nearly 50 percent of Chinese consumers prefer a product made in the U.S. to a China-made product of equivalent price and quality.
• The premium that Chinese consumers are willing to pay ranges from about 10 percent to almost 80 percent in the categories tested.
• More than half had chosen U.S.-made products over less expensive Chinese goods at least once in the month before the survey.

The data shows that Made in the USA resonates even stronger for U.S. consumers, of course.

Naturally, this presents a great opportunity for the many small businesses and manufacturers to tap into a new market like China with over a billion people. Many have tried to tap overseas markets only to fail because of the cultural differences, government red tape (on both sides), and shipping logistics, just to name a few of the challenges. The good news is there are many international trade resources for navigating this complex arena.

If you are looking to understand what your competitors are shipping, you can check out a company like Manifest Journals where a business connection of mine, Michael Heffernan, helps companies make sense of U.S. Customs Import Trade Data. Or head to the International Trade Administration to start your exporting journey. The USA.gov site on international trade is also a powerful resource.

The findings—part of BCG’s ongoing study of the changing global economics of manufacturing and its Made in America, Again research series—support previous BCG analysis showing that the U.S. is becoming increasingly attractive as a location for making certain products for the U.S. market and as a base for global exports.

The U.S. has improved its cost competitiveness compared with China and the advanced economies of Western Europe and Japan, leading BCG to estimate that higher U.S. exports—combined with production “reshored” from China—could create 2.5 million to 5 million new U.S. jobs in manufacturing and related services by the end of the decade (which I’ve reported on earlier this year).

In both the U.S. and China, respondents of all age groups and income levels expressed a concern for quality, a key driver of the consumer preference for U.S.-made products. Eighty-five percent of U.S. consumers and 82 percent of Chinese said they “agree” or “strongly agree” that they feel better about Made in USA quality. Patriotism is another strong consideration among U.S. consumers: 93 percent said that they would pay more for U.S.-made goods in order to keep jobs in the U.S., and 80 percent said that buying U.S. products demonstrates patriotism.

In contrast to U.S. and Chinese consumers, European consumers strongly prefer products made in their own countries. More than 65 percent of consumers in both Germany and France said that they would be willing to pay more for products made in their home country than for those made in the U.S.