Let's be clear about something: China only responds to real action and the threat of consequences

Posted by scapozzola on 10/02/2011

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

@KeepitMadeinUSA on Twitter

  • RT @ScottPaulAAM: This @TerriLLand trade ad is very vague. Will she oppose TPP? Strengthen Buy America? Vote for China currency bill? http:… 2 hours 22 min ago
  • We agree! RT@tomhanks: Great summer reading. I give it 42 stars. No, I give it 142 stars. Yeah, it's THAT good. Hanx. http://t.co/6GoomroCPK 21 hours 48 min ago
  • ICYMI: @VP talks infrastructure in a new video: http://t.co/15CJIHrjwU It's time for a long-term plan to #RebuildAmerica. 23 hours 59 sec ago
  • 87% of Democrats & more than 90% of Republicans think this is an important issue. http://t.co/iWq1gepeyW 1 day 19 hours ago
  • The White House & Congress joined forces to strengthen workforce training — and they can do more to help workers: http://t.co/Jath06pjr0 1 day 20 hours ago
  • .@VP talks infrastructure in a new video: http://t.co/15CJIHrjwU It's time for a long-term plan to Rebuild America: http://t.co/XA0xKcTBjm 1 day 20 hours ago
  • Hey @BarackObama: We think strengthening workforce training is great. Now let's make sure workers can find jobs. http://t.co/ihrgEibD9W 1 day 20 hours ago
  • RT @ScottPaulAAM: Rarity: D&R voters overwhelmingly agree #TPP should prohibit currency manipulation. So do House & Senate. More here: http… 1 day 21 hours ago
  • Trade agreements shld have mechanisms allowing U.S. to take action if currency manipulation is found to be taking place, @ScottPaulAAM says. 1 day 21 hours ago
  • Americans are united: Lawmakers must work to prohibit currency manipulation when negotiating trade deals. http://t.co/bVXitD5Sno 1 day 21 hours ago