The Chinese government deliberately intervenes in the currency exchange rate market to gain an artificial, unfair trade advantage over American-made goods. Economists estimate that the Chinese yuan is undervalued by 40 percent. According to Nobel Prize winning economist Paul Krugman, known for his support of free trade policies, “In effect, China is taxing imports while subsidizing exports, feeding a huge trade surplus.”

Since China made a pledge to allow a more flexible exchange rate in July of 2010, the yuan has appreciated less than five percent. Meanwhile, the Administration has declined to name China as a currency manipulator in its semiannual report to Congress. Left unchecked, China’s currency manipulation stands in the way of free and fair trade, job creation, and a higher standard of living for millions of Americans.

CLICK HERE to download a fact sheet on China's ongoing currency undervaluation.