Levin Statement on China's Currency Devaluation

Statement

Ways and Means Committee Ranking Member Sander Levin (D-MI) today issued the following statement following an announcement by China's central bank that it devalued its currency:

"Given China's history of devaluing its currency to gain an unfair export advantage, today's actions by the Chinese government raise serious concerns. Although some analysts have suggested that today's move is a step in the direction of a truly market-based exchange rate for the Chinese RMB, it is important to note that in many other respects, China is increasingly intervening in its stock market and other markets. There is reason to be skeptical of believing that the largest devaluation of the Chinese currency in over two decades is merely about moving to a market-based exchange rate. Therefore, we need to continue to review the facts underlying today's devaluation and will be closely watching the actions taken by the Chinese government in the coming days and weeks ahead.

"In view of suggestions that additional countries like China might become party to a TPP agreement, and that we need to use TPP as a key opportunity to write the rules of trade for the 21st Century, this action highlights the need to include a strong and effective obligation on currency manipulation in TPP, and to include a provision to impose countervailing duties to address currency manipulation in the Customs legislation that is expected to be negotiated in a House-Senate conference in September."

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