China’s currency manipulation has reduced American exports, caused the loss of U.S. manufacturing jobs, and significantly contributed to our large trade deficit with China. The Chinese government has intervened in world markets, causing its currency to be undervalued by as much as 25% to 40%. This unfair trade practice translates into a significant subsidy, artificially making Chinese imports into the United States much cheaper and U.S. exports to China much more expensive, jeopardizing efforts to create and preserve manufacturing jobs in America. If China allowed its currency to respond to market forces, a million U.S. manufacturing jobs would be created here at home and our trade deficit with China would be cut by $100 billion a year, with no cost to the U.S. treasury.
Last night, the House passed the Currency Reform for Fair Trade Act—a key part of our ‘Make It In America’ initiative to increase American manufacturing and create new American jobs—to give the Administration effective tools to address the unfair trade practice of currency manipulation by foreign countries, including China. The bill makes clear that additional tariffs can be imposed to offset the effects of a “fundamentally undervalued” currency under U.S. trade remedy laws.
Speaker Pelosi in strong support of the bill:
While the bill passed by a vote of 348-79, the top three House Republican leaders—Republican Leader John Boehner, Republican Whip Eric Cantor, and Republican Conference Chairman Mike Pence—voted against the landmark currency bill.
From the news:
Los Angeles Times – House votes to pressure China over yuan:
…lawmakers took a big step Wednesday toward punishing China for holding down the value of its currency…
…Nobel Prize-winning economist Paul Krugman has estimated that China’s currency policy — and resulting large trade surpluses — may cost 1.4 million U.S. jobs in the next couple of years.
…reforming China’s monetary policy would be a major tool to rebalance a U.S. economy…
The Hill – 74 GOP members defect as China bill passes the House:
In a vote that divided House Republicans, the chamber on Wednesday overwhelmingly approved legislation meant to hammer China for its currency policy.
…Ninety-nine Republicans voted for the measure while 74 opposed it, and the vote split GOP leaders…
Minority Leader John Boehner (Ohio), Minority Whip Eric Cantor (Va.) and GOP Conference Chairman Mike Pence (Ind.) opposed the legislation…
…Some Democrats looked to attack Republicans who voted against the measure, saying they were siding with U.S. corporations with investments in China over U.S. workers.
Reuters – House passes bill aimed at Chinese yuan:
The U.S. House of Representatives stepped up pressure on China to let its currency rise faster, passing a bill on Wednesday that could penalize Chinese goods, as lawmakers blamed it for lost jobs in America.
…The bill passed with solid bipartisan support …Many lawmakers both in the House and the Senate have complained for years that China’s policies create an unfair trade advantage, but this is strongest step taken yet.
New York Times – Eye on China, House Votes for Greater Tariff Powers:
The House of Representatives…vot[ed] overwhelmingly to give the Obama administration expanded authority to impose tariffs on virtually all Chinese imports to the United States.
Associated Press – House OKs Bill Targeting China’s Currency Manipulation:
The House has approved legislation that would allow the U.S. to seek trade sanctions against China and other nations for manipulating their currency to gain trade advantages.
“Some credible estimates are that we could return a million American jobs to this country,” said Rep. Xavier Becerra (D-CA), in urging support for the legislation. “We can either take bold steps or we can take baby steps.”
Wall Street Journal – House Lashes Out at China:
The House of Representatives by a wide margin passed legislation to penalize China’s foreign-exchange practices…
The vote marks the strongest trade measure aimed at China to make it through a chamber of Congress after more than a decade of threats by lawmakers…
McClatchy News Service – House votes to allow sanctions to stop currency shenanigans
The House of Representatives voted 348 to 79 Wednesday to send a strong…bipartisan message to China…
…among the strongest ever threatening retaliation against China for its currency policy…