Owens Responds to Treasury Department Report on China Currency
Nov 29, 2012 -
This week, the U.S. Treasury Department released their findings that China’s currency “remains significantly undervalued” versus that of the dollar. Despite this fact, and China’s continued intervention in the market to halt the appreciation of its currency, the Treasury Department declined to label China a currency manipulator. These findings were released as part of the twice-yearly “Report to Congress on International Economic and Exchange Rate Policies,” required by Congress, on the currency policies of foreign competitors.
“I am disappointed the Treasury Department has declined to take the aggressive steps necessary to ensure that American workers and manufacturers have a level playing field on which to compete with China,” said Congressman Owens. “We must do more to protect American jobs.”
A weak Yuan is generally believed to favor Chinese exports over American products by deflating the price of Chinese goods coming into the country, costing American jobs in the process. According to the Census Bureau, America’s trade deficit with China reached nearly $30 billion in September alone.
Congressman Bill Owens is a co-sponsor of the “Currency Reform for Fair Trade Act,” which would help American businesses by treating fundamentally undervalued currencies as a prohibited subsidy, allowing the U.S. to take action to counter China’s currency manipulation. Owens has long called for the labeling of China as a currency manipulator, which would allow the United States to take more aggressive action against China to protect America’s middle class.
“There have been some encouraging signs that continued pressure on the Chinese government is taking its toll, with China’s currency having risen over nine percent in the last few years, but experts agree their currency is still significantly undervalued,” said Owens. “Now is not the time to let up.”
The Treasury Department’s statement on their report and a link to the full text is available online here.