Published: September 23, 2011 » Comments | Post a Comment
A revised bill targeting the effect of Chinese currency manipulation on the U.S. economy was introduced Thursday in the U.S. Senate.
The Currency Exchange Rate Oversight Reform Act of 2011 drew significant bipartisan support, including from Sens. Richard Burr, R-N.C., and Kay Hagan, D-N.C.
The bill, the latest in a five-year effort focused on the Chinese yuan, is expected to be voted on before year's end.
The bill would instruct the U.S. Commerce Department to consider China's undervalued currency an illegal subsidy. With that designation, U.S. companies on a case-by-case basis could seek relief through compensatory penalties against Chinese imports.
The Senate bill is similar to the Currency Reform for Fair Trade Act reintroduced earlier this year in the U.S. House. Rep. Howard Coble, R-6th, is one of nine North Carolina representatives sponsoring the bill, which was overwhelmingly approved last year.
Both bills face opposition from a large coalition of pro-retail trade groups, including the U.S. Chamber of Commerce.
Currency manipulation remains a hot-button import issue, particularly in the furniture, sock and textile industries.
Some critics say the yuan has been undervalued by as much as 40 percent for the past 10 years, giving Chinese exports a major competitive advantage versus products made in the U.S. and much of the world. Chinese exports to the U.S. in 2010, at $364 billion, were more than four times greater than U.S. exports to China, at $85.7 billion.
The Senate bill would "trigger tough consequences for countries that fail to adopt appropriate policies to eliminate currency misalignment," according to the senators.
The senators cited a national trade study released Tuesday as the primary impetus behind their renewed action.
The Economic Policy Institute reported that U.S. trade with China has cost North Carolina nearly 108,000 jobs, primarily in manufacturing, since 2001. An estimated 2.8 million jobs were affected nationwide.
That includes a combined 22,334 in North Carolina's 5th and 6th congressional districts. The state had five congressional districts listed among the top 34 affected nationwide from 2001 to 2010.
The senators also cited a separate report from the think tank that estimated that if the Chinese yuan and satellite currencies were revalued to a more realistic level, up to 2.25 million jobs could be created through an increase in U.S. gross domestic product.
"The trade deficit we have with China represents a dire threat to our economy and has resulted in fewer American exports and the loss of millions of American manufacturing jobs, including many in North Carolina," Burr said.
"This trade deficit is due, in large part, to China undervaluing its currency, which is an issue we must address in order to re-establish our competitiveness in the global marketplace."
Hagan said China "has been playing games with its currency and we all know it. It is time to get tough."
rcraver@wsjournal.com (336) 727-7376 McClatchy Tribune News Service contributed to this article.
0 件のコメント:
コメントを投稿