Does renminbi undervaluation cost US jobs?

Check out the clashing views on the renminbi and American jobs at Foreign Policy.

Fred Bergsten wants China to significantly revalue the renminbi (something like a 10% immediate appreciation), saying that “China is exporting large doses of unemployment to the rest of the world.” He thinks a trade correction would create a million US jobs, using a rule of thumb in which “$1 billion of exports supports about 6,000 to 8,000 (mainly high-paying manufacturing) jobs in the United States.”

Phil Levy offers the rebuttal. In normal times, most believe the trade balance doesn’t affect employment. In a recession, could the trade balance affect the unemployment rate? He points to Ray Fair’s econometric model, which suggests that Chinese undervaluation has actually created US jobs. He’s also not a fan of Bergsten’s rule of thumb.