"Still, Zoellick signaled that the U.S. is unwilling to challenge China's currency peg at the WTO,"
The Chines would have to revalue the yuan by a factor of 10 to their wages even remotely comparable to ours.
On absolute terms, yeah, maybe. But I can already tell you know next to nothing about trade.
Pricing is done on total package deal...not just labor costs.
It depends on what products we are talking about, but in large part China only beats US manufacturing prices by the single digit percentages. It depends on what. Thats not just talking about labor (which some single mindedly beat to death), but rather a comprehensive price of what gets to the customer....
In other words a 10% increase in the RMB vs the dollar would make a world of difference.