How do we address the growing challenge of trade with China?
A bipartisan group of U.S. Senators recently introduced the Currency Exchange Rate Oversight Act of 2011 to provide recourse for U.S. manufacturers adversely affected by China's ongoing currency undervaluation.
In a letter to the Senate explaining the importance of this legislation, Alliance for American Manufacturing (AAM) Executive Director Scott Paul set the record straight regarding this new legislation:
Myth: Legislation to address currency manipulation would ignore “the many and growing challenges that we face in China.”
Fact: China employs a host of market-distorting practices to gain an upper-hand on American workers and companies, including currency manipulation, inadequate protection of intellectual property, limits on the export of rare earth elements, restrictions on market access such as discriminatory indigenous innovation requirements, and illegal subsidies for state-owned enterprises.
Congress and the administration are working to address many of these issues, but it is absurd to suggest that action on currency somehow dilutes our efforts to combat other unfair trade practices. There is no reason to delay congressional action on currency manipulation, which acts as a massive tax on U.S. exports and as an illegal subsidy on China’s exports. The result has been a bilateral trade deficit that has grown from $83 billion in 2001 to a record $273 billion in 2010.
Related recent Blogs
- Manufacturing sector adds 28,000 jobs in July: Alliance for American Manufacturing (AAM) statement. • by scapozzola • 08/01/2014
- New "Gigafactory" set to create thousands of jobs in the U.S. • by TGarland • 07/31/2014
- Congress Still Hasn't Made a Fix to the Highway Trust Fund • by mmcmullan • 07/30/2014
- UCLA Flood: A Real Life of Example of What Happens When We Ignore Our Infrastructure • by elizabethbb • 07/30/2014
- Candidate Watch: We Need a Few More Details, Terri Lynn Land • by elizabethbb • 07/29/2014
- Fact Check: Standing Up Against Unfair Trade, Kentucky Edition • by TGarland • 07/25/2014
- Strengthened Workforce Training is Great — and We Can Do More • by elizabethbb • 07/23/2014
- Americans Want Trade Agreements that Do Not Undermine Manufacturing Jobs, New Poll Finds • by TGarland • 07/23/2014
- Highlights from AAM's Trip to Detroit for Netroots Nation 2014 • by elizabethbb • 07/23/2014
- Toxic Fast Food: Just the Latest Scandal Involving Made-in-China Products. • by elizabethbb • 07/22/2014