China trade on Kerry's hitlist

Democratic presidential candidate John Kerry says American workers are paying the price for President George W. Bush's weak stance on trade with China and other countries.

Kerry pledged yesterday to aggressively pursue trade complaints against other nations as he kicked off a three-day "Jobs First" bus tour of West Virginia, Ohio, Pennsylvania and Michigan - all key battleground states in November that have suffered job losses.

"When we agree to a trade agreement, the American people deserve to have other nations live up to their side of the bargain," the Massachusetts senator said in a speech to local Democratic activists. "We have rules for a reason. Those rules need to be enforced."

Kerry focused on the economy on a day in which Vice-President Dick Cheney led an assault on Kerry's defence record. As Cheney criticised Kerry's votes against some weapons programmes, Democrats accused Cheney of using "diversionary tactics" to try to undermine the senator's national security credentials and highlighted his experience as a decorated Vietnam War veteran.

On the bus tour, Kerry singled out the Bush Administration's handling of trade with China and said it was manipulating its currency.

China's peg of its currency against the dollar has long worried American manufacturers, who believe the Chinese yuan is undervalued. That allows China to sell products more cheaply in the US.

Bush Administration officials have pressed Chinese officials about the peg, but so far to little avail.

Kerry's Senate record has tended to favour trade openness. But during the campaign, he has said that if he is elected he will review all US trade pacts to make sure they are fair.

Bush has criticised Kerry's trade stance as one that would lead America to "economic isolationism".

Hours before his speech, Kerry donned a hard hat and boots to tour the McElroy Mine in the lush hills of Glen Easton, West Virginia.

Kerry told workers he would roll back Bush's tax cuts on the wealthy and put some of the money towards healthcare.

- REUTERS