Senators Threaten Action on China Currency

A group “of senators, on the eve of Chinese President Hu Jintao’s arrival in the United States, said the time has come for U.S. congressional action on China’s currency policies,” Reuters reports.

"There’s no bigger step we can take to preserve the American dream and promote job creation, particularly in the manufacturing sector … than to confront China’s manipulation of its currency," Democratic Senator Charles Schumer said.

The message to Hu is "we are fed up with your government’s intransigence on currency manipulation. If you refuse to play by the same rules, we will force you to do so," Schumer said in a conference call with reporters.

Beijing’s currency practices give Chinese companies an unfair price advantage in trade and have acted like "a boot on the throat" of U.S. economic recovery, Schumer said.

Hu arrives “in Washington on Tuesday for a state visit with President Barack Obama and also is expected to meet with senior members of Congress.”

Senator Schumer “said he and a group of bipartisan senators would reintroduce a bill they crafted last year, but which never came to a vote in Senate.”

It would require the Treasury Department to investigate "China’s manipulation of its currency and actually do something about it … The time for talk is over. We’ve had enough of China’s empty verbiage," he said.


1 Comment

Filed under China, Currency

One response to “Senators Threaten Action on China Currency

  1. Hugh Campbell

    An America Lost in Squanderville.

    The United States’ trade gap is the proverbial “leak-in the-dike” with its de-simulative effect on our recovery. In November 2003, Warren Buffett in his Fortune, Squanderville versus Thriftville article recommended that America adopt a balanced trade model. The fact that advice advocating balance and sustainability, from a sage the caliber of Warren Buffett, could be virtually ignored for over seven years is unfathomable. Media coverage that China has kept it currency undervalued is a gross understatement, it has actually been keeping the U.S. dollar over-valued; which adversely affects all U.S. trade with all U.S. trading partners, not just trade with China. Until action is taken on Buffett’s or a similar balanced trade model, by the powers that be, America will continue to squander time, treasure and talent in pursuit of an illusionary recovery.

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