Hearing of the Senate Banking Committee on the Treasury Report to the Congress on International Economic and Exchange Rate Policies
Hearing of the Senate Banking Committee on the Treasury Report to the Congress on International Economic and Exchange Rate Policies
DOLE: CHINA'S UNDERVALUED CURRENCY HURTS NC JOBS AND MANUFACTURERS
U.S. Senator Elizabeth Dole today in a Senate Banking Committee hearing on the Treasury Report to the Congress on International Economic and Exchange Rate Policies urged Treasury Secretary John Snow to bolster efforts to address China's currency manipulation. Below is Dole's statement:
Secretary Snow, thank you for joining us. While this report focuses on a number of different countries, China, of course, remains the major focus. I want to thank you, Secretary Snow, for your efforts and your accessibility on the issue of the Chinese currency peg, but I have to say that I am again greatly disappointed with the failure to recognize China's currency manipulation. Chinese currency is grossly undervalued. The steps taken by China last summer and again earlier this week to revalue the yuan, while welcome, can't even be described as baby steps in addressing the problem of China's tight currency controls.
I know first hand through my own experiences with the Chinese government back during the 1980's when I served as President Reagan's Transportation Secretary that negotiations can be difficult and frustrating. And I appreciate many of the sentiments you express in your report. For example, this important excerpt:
"While these developments suggest that progress is being made, China's advances are far too slow and hesitant given China's own needs, and its responsibilities to the international financial community. The delay in introducing additional exchange rate flexibility is unjustified given the strength of the Chinese economy and the progress of China's transition. China needs to move quickly to introduce exchange rate flexibility at a far faster pace than it has done to date."
While I may have used some stronger adjectives, Mr. Secretary, this statement demonstrates our mutual concern.
How many times have we said in this committee, in North Carolina and across the country, manufacturers have been hurt by China's undervaluing its currency. When I talk to industry leaders about this issue, many of whom have been forced to layoff loyal, hard working North Carolinians because of unfair competition from China, it just isn't enough for me to say: "I agree - and the Administration agrees." We must take action and generate results.
Secretary Snow, I know that you and the president have invested a great deal of time and energy in working with the Chinese leadership to address this issue, but we must bolster our efforts. In the coming months the Senate is expected to again consider this issue. It is my hope that through aggressive talks and strong pressure from the Administration and Congress, we can make real and significant progress to induce China to freely float its currency.
http://dole.senate.gov/index.cfm?FuseAction=PressReleases.Detail&PressRelease_id=834&Month=5&Year=2006