OFFICIALS LEGISLATION INTEREST GROUPS PUBLIC STATEMENTS COMMITTEES VETOES

Mollohan Urges President To Fight Chinese Currency Manipulation

Press Release

Date: April 23, 2010
Location: Washington, DC
Issues: Monetary Policy

Congressman Alan B. Mollohan sent a letter to President Barack Obama this afternoon urging him to fight China's currency manipulation.

By pegging its currency -- the renminbi or RMB -- to the U.S. dollar at a fixed exchange rate, the Chinese government artificially inflates its exports, putting an unfair burden on American manufacturing.

"China's currency manipulation not only places American businesses at an unfair competitive disadvantage, but also is counterproductive to our nation achieving a truly sustainable economic recovery," Mollohan wrote in his letter. "The First Congressional District of West Virginia, along with manufacturing areas across the country, has been severely disadvantaged by unfair foreign practices, including currency manipulation."

Last month, Mollohan joined 129 other Representatives in sending a letter to Treasury Secretary Timothy Geithner and Commerce Secretary Gary Locke, urging them to take the following specific steps to combat China's currency manipulation:

First, the Commerce Department should apply America's countervailing duty law to defend American companies who have suffered as a result of currency manipulation. This would enable the Commerce Department to treat the benefit Chinese manufacturers derive from currency manipulation as an unfair subsidy.

Second, the Treasury Department should include China in its biannual report on currency manipulation. Since 1994, the Treasury Department has not identified China as a country that manipulates its currency, even though Secretary Geithner has acknowledged that China does manipulate its currency. This would be an important first step for the Treasury Department to enter into negotiations with China regarding its foreign exchange policies.

"American industry and American workers can compete on equal terms against China or any other country," Mollohan said. "It's time we recognized currency manipulation as the unfair trade practice it is and demand a stop."


Source
arrow_upward