Rogers: China Monetary Policy Like Ballplayer on Steroids

Rogers: China Monetary Policy Like Ballplayer on Steroids

Chinese monetary policy is stealing American jobs and U.S. Rep. Mike Rogers, MI-08, wants U.S. officials empowered to deal with the on-going problem.

As Rogers introduced legislation Monday giving the U.S. Treasury Department authority to press China for fair currency management, treasury officials were releasing a report warning China to change its system of valuing its yuan or face a U.S. pushback.

"When China uses its monetary policies to unfairly affect trade and put American workers at a disadvantage in the world marketplace, our entire U.S. economy suffers," said Rogers, vice-chair of the House Energy and Commerce Subcommittee on Commerce, Trade and Consumer Protection. "China's currency manipulation hits Michigan workers especially hard due to our manufacturing economy. We have some of the world's most talented and well-trained workers, who can compete in any market as long as trade practices are fair and equally enforced.

"For the sake of our entire economy and the families who depend on American jobs, China's unjust monetary practices can no longer go unchallenged."

Rogers said his legislation gives Treasury officials tools to accurately assess currency manipulation within the bounds of international law, and the authority to take strong action to press China for change.

The bill requires the federal government to: make an annual determination of whether the exchange rate for the yuan gives China an unfair competitive advantage; more closely monitor Chinese currency manipulation; and, take strong action to punish China and aid American companies through the World Trade Organization.

Rogers said some estimates show China undervaluing its yuan as much as 40 percent, giving Chinese workers a huge advantage and costing U.S. workers as many as a million manufacturing jobs the last three years.

"Chinese currency policy is comparable to ballplayers taking steroids to give themselves an unfair advantage over other players," Rogers said. "It takes the right blood tests to determine if steroids are present in ballplayers, and Treasury needs the right instruments to determine if currency manipulation is giving China that competitive edge over American workers.

"With this legislation, we will be giving U.S. officials clear direction to make an accurate assessment of unfair currency policy and the authority to deal with it in an effective way."

http://www.mikerogers.house.gov/newsroom.aspx?A=167