PASCRELL ANNOUNCES SUPPORT FOR LEGISLATION AIMED AT ENDING UNFAIR CHINESE CURRENCY MANIPULATION
Chinese Exchange Rate Policies reduce U.S. GDP by 1.5 percent annually and reduce U.S. employment by 1.5 million jobs.
WASHINGTON -- Following a House Ways and Means Committee hearing on China's currency policy, U.S. Rep. Bill Pascrell, Jr. (D-NJ-08) today announced that he will co-sponsor H.R. 2378, the Currency Reform for Fair Trade Act. The legislation will help the United States combat China's mercantilist exchange rate policy.
"China's continued manipulation of its currency is quite simply unacceptable," stated Pascrell, a member of the House Ways and Means Committee who opposed Permanent Normal Trade Relations and WTO membership for China in 2000. "As we struggle to pull ourselves out of this financial crisis by encouraging growth and job creation, China's exchange rate policy has been like a weight tied around our nation's feet. We simply cannot afford to let this unfair and illegal manipulation balloon our trade deficit, hamper growth, and kill jobs here."
For years, China has manipulated the value of its currency, the renminbi, keeping it artificially low to the detriment of the U.S. economy. This devaluation has exacerbated the growing trade deficit with China. Our trade deficit caused a loss of 3.4 percent of GDP growth this past quarter, and the portion of that deficit with China has led to 2.4 million American jobs lost or displaced since 2001, according to an analysis by the Economic Policy Institute.
Approximately 6,000 of those jobs were in New Jersey's Eight Congressional District of New Jersey.
"The United States has attempted to negotiate in good faith with the Chinese Government over the issue of its currency since 2003. Yet, since the Chinese announced in June they would let their currency rise in value, it has appreciated only one percent," said Pascrell. "This is unacceptable to the millions of Americans who have seen their jobs shipped overseas to countries like China that simply refuse to play by the rules. The United States must use all of the tools we have in order to ensure that our workers and businesses are not being cheated by currency manipulation and illegal subsidies."
In addition to fighting trade imbalances with China, Rep. Pascrell has held jobs creation and the promotion of American manufacturing as top priorities throughout this Congress. The recent legislation he has authored includes a bill to bring manufacturing jobs to New Jersey through the offshore wind energy industry, and a bill to spur jobs creation through water infrastructure upgrade projects.