Print

Mail

wiki links

US officials hope to punish Beijing over yuan policy

Four Republican lawmakers have introduced legislation to require the US government to place tariffs on Chinese imports equal to the amount of advantage they gain from "currency manipulation."

"Our workers and manufacturers are suffering today, and a big part of it can be chalked up to the unfair trading practices of countries like China," said Representative Mark Green, who was among the four who introduced the bill in the House of Representatives.

Joining him at a news conference on Tuesday were the other three lawmakers who introduced the bill: Phil English, Chris Chocola and Robin Hayes.

English noted that the US Treasury Department has raised the currency issue with China, but said "the lack of progress has been a real disappointment."

"Without a level playing field, our manufacturers are at a significant disadvantage," Chocola said. "This bill results in not only free trade, but fair trade by making sure China plays by the rules."

Green argued that Chinese manipulation of the yuan keeps the prices of Chinese goods artificially low in the US, and the prices of US goods artificially high in China.

"If China wants to continue trading with the US, they'll have to learn to play by the rules," Green said. "American businesses can compete with anyone in the world when the playing field is level, but not when the deck is stacked against us.

It time that the United States "got tough with the Chinese," he said.

Over in the Senate, Secretary of the Treasury John Snow and Federal Reserve Chairman Alan Greenspan will testify today about the impact of China's fixed exchange rate on the US economy to the Senate Finance panel.

The hearing is part of the committee' deliberations on a bill written by Democratic Senator Charles Schumer and his Republican colleague Lindsey Graham that seeks to force China to reform its currency regime.

The bill would slap a 27.5 percent tariff on Chinese imports if Beijing does not take meaningful steps to revalue the yuan.
This story has been viewed 2472 times.