Stabenow, Levin: Administration Must Stand Up for Manufacturers, Make China Play by the Rules

Stabenow, Levin: Administration Must Stand Up for Manufacturers, Make China Play by the Rules

In a letter to the President, the Senators urge him to stop currency manipulation by China and Japan

Michigan Senators Debbie Stabenow and Carl Levin sent a letter to President Bush urging him to stand up to China and Japan and demand they stop manipulating their currency. Earlier this week, the U.S. Department of the Treasury released a report claiming that China does not manipulate their currency - an inaccurate claim that hurts American business and costs Americans their jobs.

"We can no longer allow countries to manipulate currency markets, steal patents, and disregard labor laws because we are losing jobs and destroying American businesses," the Senators said in the letter. "Without that rule of law, our businesses are harmed, our jobs are lost, and in the long run, our economy will pay the price."

The full text of the letter follows:

May 11, 2006

The President
The White House
1600 Pennsylvania Avenue, N.W.
Washington, D.C. 20500

Dear Mr. President,

We are writing to express our deep disappointment over your administration's recently released treasury report claiming once again that China is not manipulating their currency. We have been through several treasury reports and exchange rate reviews that do nothing to address what everyone knows is a problem - China's currency manipulation. In fact, over the last three years, we have been told that your administration is engaged with the Chinese government to address the exchange rate; but each and every time a new treasury report is released nothing is done to stop China from manipulating their currency.

This hands-off approach by your administration is hurting U.S. manufacturers and costing American jobs. Our nation was built on innovative ideas by hard-working families with a deep respect for the law. Today, this foundation is at risk because our trade laws are not enforced globally. It is no question that currency manipulation in China has directly harmed American businesses - a cheaper yuan makes U.S. exports to China artificially more expensive. This puts U.S. manufacturers at an unfair disadvantage in the Chinese market. It also makes imports from China artificially cheaper to U.S. consumers, hurting U.S. manufacturers and costing American jobs. In a highly competitive market, an undervaluation of 15% to 40% is the difference between sustainability and bankruptcy. We must protect our economy from these unfair practices that are forcing U.S. manufacturers into bankruptcy.

We can no longer allow countries to manipulate currency markets, steal patents, and disregard labor laws because we are losing jobs and destroying American businesses. The future has always been defined by creating new ideas and having a rule of law that allows those ideas to flourish into profitable businesses and good paying jobs. Without that rule of law, our businesses are harmed, our jobs are lost, and in the long run, our economy will pay the price.

Once again, Mr. President, we urge you to stand up to China and Japan and demand that they stop manipulating their currency.

Sincerely,

Senators Debbie Stabenow (D-MI) and Carl Levin (D-MI)

http://www.stabenow.senate.gov/press/2006/051206MakeChinaPlayByRules.htm