Rep. Foster Votes to Combat Chinese Currency Manipulation

Press Release

Today, Congressman Bill Foster (IL-14) voted for legislation that would take steps to combat Chinese currency manipulation, a practice that puts American manufacturing companies at a disadvantage.

"As a former businessman who started a manufacturing company that now employs hundreds of employees in the Midwest, I know personally how hard it is to compete with international companies that play by a different set of rules," said Foster. "This legislation will give the U.S. Department of Commerce additional tools to help ensure that American companies are not put at an unfair disadvantage."

Currently, China suppresses the value of its currency (the Renminbi), making China's exports cheaper than they would be if China allowed its currency to be set by the market. As a result, this policy places a drag on U.S. economic growth and job creation -- particularly in the manufacturing industry.

According to Fred Bergsten of the Peterson Institute, allowing the Renminbi to appreciate to its real value would make U.S. manufacturers more competitive and create an estimated 500,000 U.S. manufacturing jobs here in the United States.

H.R. 2378, the Currency Reform for Fair Trade Act, would give the Department of Commerce greater leeway to identify countries that manipulate their currency. Once identified, there are a number of remedies available, including a countervailing duty or antidumping duty.

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