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Romney, Cain Sound Alarm Over Report That China's Economy Will Soon Surpass U.S. Economy

A couple of potential GOP presidential candidates sounded the alarm over an International Monetary Fund (IMF) report that shows China's economy will surpass the U.S. economy in 2016. But each claims his plan would stop the U.S. slide.

Former Massachusetts Governor Mitt Romney said in a Fox News interview with Greta Van Susteren that American trade policy toward China has been too lax.

"We've allowed them to manipulate their currency to make our products more expensive than theirs, and that has allowed them to come into our country and replace a lot of jobs in this country," Romney said. "At the same time, they make it very difficult for our intellectual property products, whether that's software or other technology, from being able to go into their country. They steal that technology."

Putting the brakes on borrowing from China is one way Romney suggests turning the tide. That's an approach he says the Obama administration has ignored.

"That's the answer that you've seen in this administration that's borrowing just record amounts of money around the world. That can't go on," Romney said. "You have to cut back on your borrowing so you're not dependent upon their lending us money."

Romney also says he would be serious with China and enforce agreements that limit Chinese currency manipulation.

Potential candidate Herman Cain weighed in on the IMF prediction as well, saying the way to change course is simple: outgrow China. He says the way to do that is to cut corporate taxes.

"We need to lower the top corporate tax rate from 35 percent to 25 percent because we are the only developed nation that has not lowered the corporate tax rate in the last fifteen years," Cain said in an interview with Fox News. "Number two, take the capital gains tax rate to zero. This will cause some cash to be created, especially for small businesses."

Cain adds that the federal government needs to stop spending and to be honest with Americans about the nation's fiscal situation.

"People need to be told we are broke, number one. Number two, they need to get serious about cutting, Cain said. "What I would do different is I would get the American people engaged and involved in this. Rather than talking at the American public, rather than assuming they are stupid, which they are not, explain to the American people here's what we need to do, here's why we need to do it."