Kildee Speaks Out Against Chinese Currency Manipulation

WASHINGTON, D.C. – Today, Congressman Dale E. Kildee (D-MI) spoke on the floor of the House of Representatives in favor of H.R. 2378, the Currency Reform for Fair Trade Act. Congressman Kildee is an original co-sponsor of this critical legislation, which takes steps to address the detrimental effects of Chinese currency manipulation on American workers and will help American products compete on a level playing field. Below is Congressman Kildee’s prepared statement:

“For years, China has unfairly pegged its currency to the U.S. dollar at a fixed exchange rate. According to estimates, this undervalues Chinese currency approximately 20 to 40 percent, allowing them to offer significantly cheaper products for export, and raising the price of U.S. imports into their country.

American workers are playing by the rules, but they are struggling to compete on the unfair playing field Chinese currency manipulation has created.

Indeed, the U.S. trade deficit with China has reached an astounding $145 billion this year, and cheap exports from china have directly contributed to hundreds of thousands of job losses across the country. In my hometown of Flint, China’s currency manipulation has contributed to an unemployment rate of more than 25 percent.

Despite these effects on our working families, currency manipulation is not currently considered when determining export subsidies to assist American businesses. This has to change and we must stand up for our workers and their livelihoods.
   
The Currency Reform for Fair Trade Act will help address this issue by making currency manipulation a factor when the Commerce Department awards export subsidies. I have long advocated for fair trade policies that protect American workers and allow them to compete fairly in the global economy. This legislation will go a long way towards achieving that goal.”