The business section of the Washington Post had an article which layed out Obama's trade agenda. When it came to China, they correctly identified Chinese trade policies as mercantilist and then concluded that there's nothing we can do about it. Here's the relevant passage in which they conclude that Obama is right in doing nothing:
Many in Congress want the administration to declare China a currency manipulator and slap it with sanctions. That could backfire if China, which believes that Japan destroyed its economy by bowing to U.S. currency demands in the 1980s, finds effective ways to retaliate. Correcting China's currency policy, alas, is probably a long-term effort that the United States can most effectively wage in concert with other trading nations that are also damaged by Chinese mercantilism. In the meantime, the best thing that the United States could do for its international competitiveness would be to cut its own immense long-term fiscal deficits. Unlike China's exchange rate, that is something over which Americans have complete control.
[An] extensive argument for balanced trade, and a program to achieve balanced trade is presented in Trading Away Our Future, by Raymond Richman, Howard Richman and Jesse Richman. “A minimum standard for ensuring that trade does benefit all is that trade should be relatively in balance.” [Balanced Trade entry]
Journal of Economic Literature:
[Trading Away Our Future] Examines the costs and benefits of U.S. trade and tax policies. Discusses why trade deficits matter; root of the trade deficit; the “ostrich” and “eagles” attitudes; how to balance trade; taxation of capital gains; the real estate tax; the corporate income tax; solving the low savings problem; how to protect one’s assets; and a program for a strong America....
Atlantic Economic Journal:
In Trading Away Our Future Richman ... advocates the immediate adoption of a set of public policy proposal designed to reduce the trade deficit and increase domestic savings.... the set of public policy proposals is a wake-up call... [February 17, 2009 review by T.H. Cate]