I rise today to express my deep concern about the Chinese government's continued manipulation of its currency. In my mind, the Chinese government's adherence to a currency valuation system that does not rest on market-based principles is wrong and constitutes an unfair competitive advantage. It is time for the unfair valuation of the yuan to stop. I understand the administration has taken steps to address the problem and some progress has been made. But this is a serious problem. Clearly more needs to be done.
Mr. GRASSLEY. As Chairman of the Senate Finance Committee, I join my colleague from South Carolina in expressing concern about the way in which the Chinese currency is valued. I certainly agree that it is a serious problem that needs to be taken seriously. A fairly valued currency is in China's own long-term interests, and is key for moving to a market driven economy. I was pleased to hear that Secretary Snow was assured that interim steps are being taken and that progress in this area will continue.
Mr. GRAHAM. I appreciate the fact that the Chairman recognizes the serious nature of this problem. Unfair manipulation of currency cannot be tolerated. I would like to see additional progress on this issue in the next 60 to 90 days. If progress is not forthcoming, I hope the Chairman would join me in supporting Senate hearings. However, these hearings should only be the first step. Should China fail to make substantial progress and the Senate fail to address this issue substantively, appropriate and responsible legislation may then be necessary, and I reserve the right to attach our China currency amendment to any available legislation that comes before the Senate.
Mr. GRASSLEY. I do appreciate the importance of this issue. If we do not see substantial progress toward adoption of a market-based currency valuation system, I would support Senate hearings at the appropriate time.
Mr. GRAHAM. I thank the Senator from Iowa, and look forward to working with him to continue to pressure the Chinese government to adopt a market-based currency valuation system.