Let's be clear about something: China only responds to real action and the threat of consequences
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: Action by Congress would not “create any incentive for China to move expeditiously to modify its exchange rate policies."
Fact: History shows that China only acts when presented with the threat of real consequences. Faced with a similar situation in 2005, the U.S. Senate acted decisively and passed bipartisan legislation introduced by Senators Charles Schumer (NY) and Lindsey Graham (SC) by a vote of 67-33. This action prompted China to steadily appreciate its currency by 21 percent until it again resumed its peg to the dollar in July 2008.
Related recent Blogs
- Reps. Daniel Lipinski (D-IL) and Michael Grimm (R-NY) form new Congressional Public Transportation Caucus. • by scapozzola • 05/23/2013
- Homeland Security and Gov. Tom Ridge • by scapozzola • 05/23/2013
- CNBC: Is a Chinese construction firm benefiting from its Beijing connection? • by scapozzola • 05/23/2013
- VIDEO: Concerns about America's defense industrial base • by scapozzola • 05/22/2013
- CNBC: China investing in U.S. • by scapozzola • 05/22/2013
- In Indiana, ongoing concerns about subsidized auto parts from China and Japan • by scapozzola • 05/22/2013
- RADIO: AAM's Scott Paul on Leslie Marshall Radio Show, May 20, 2013 • by scapozzola • 05/21/2013
- Shoring up our security means addressing the China challenge • by mmcmullan • 05/20/2013
- Quote of the Day from Caterpillar's Doug Oberhelman • by LDonia • 05/20/2013
- May 20, 2013 Headlines: Manufacturing & social media, growth of the U.S. economy, and more. • by LRaup • 05/20/2013
