ROSKAM CHINA LEGISLATION PASSES HOUSE
Congress Overwhelmingly Calls on Chinese Government to Remove Financial Barriers to U.S. Firms
Washington, Sep 5 - Congressman Peter J. Roskam (R-IL) today commended Congress for passing his legislation calling on the government of the People's Republic of China to remove barriers to U.S. financial services firms seeking access to China's financial service market.
Roskam, a member of the United States House of Representatives Financial Services Committee, partnered in introducing H. Res. 552, a bipartisan bill aimed at modernizing the financial sector in China to create a more open, competitive and effective market.
"This resolution sends the message to China that the United States wants to play a constructive role in addressing the vulnerabilities in China's financial services industry, and to help guide China as it integrates its economy with that of the world," said Roskam. "Access for U.S. financial services firms to the Chinese market will fuel U.S. economic growth while expanding job creation."
Illinois' 6th Congressional District is home to more than 50,000 employees in the financial services sector who would greatly benefit from access to China's consumer market.
"Of China's 1.3 billion people, 480 million use cell phones, but only an estimated 1 million currently have a credit card," remarked Roskam. "The potential impact for job creation in the U.S. financial services sector is astonishing. It is in the best interest of my district and the U.S. economy as a whole to reduce the burdensome barriers that have led to the current trade deficit."
Historically, Chinese households save as much as a third of their income, compared to single-digit savings rates in the U.S. and Europe. This large rate of saving is related to the declining role of the state, and the fact that most Chinese depend on their families and private savings to pay for retirement, health care and the economic consequences of accidents or disasters. The availability of financial products and services - personal loans, credit cards, mortgages, pensions and insurance products - will eliminate the need for such precautionary savings' and facilitate consumption.
"The Chinese government subsidizes its manufacturing sector, which particularly affects the 6th District of Illinois," continued Roskam. "My district employs almost 68,000 individuals in manufacturing and is home to over 1,100 manufacturing facilities. Everyday I hear the concerns from my constituents over the ill effects of China pegging its currency to the dollar. China argues that pegging is necessary until reforms in the financial sector can foster the more balanced growth they need. However, American firms offering innovative products will allow the currency to float.
"As China increases its presence among globally competitive nations, we must work with Chinese to ensure fairness is a part of their economic plan. Undoubtedly, there is great potential benefit to the United States and other countries in gaining access to China's market. "