“Currency manipulation has become the backdoor way China and other countries subsidize their exports at the expense of American manufacturing jobs,” Mollohan explained. “By pegging its currency to the U.S. dollar at a fixed exchange rate, the Chinese government makes their country’s exports to the United States cheaper and our exports to China more expensive.”

H.R. 2378, the Currency Reform for Fair Trade Act, would require the Commerce Department to treat currency manipulation as an export subsidy under our trade laws and enable the Department to impose countervailing duties against Chinese exports. Mollohan is a cosponsor of the bill.

Economists estimate that forcing China to stop its currency manipulation would create one million manufacturing jobs in the United States and cut our trade deficit with China by $100 billion a year, all at no cost to the U.S. Treasury.

In March, Mollohan joined 129 other Representatives in sending a letter to Treasury Secretary Timothy Geithner and Commerce Secretary Gary Locke, urging the Administration to take stronger action against Chinese currency manipulation.

“The legislation we passed this afternoon will give the Administration greater leverage with the Chinese government,” Mollohan said. “American industry and American workers can compete on equal terms against China or any other country,” Mollohan said. “It’s time we recognized currency manipulation as the unfair trade practice it is and demand a stop.”

The legislation is supported by the United Steel Workers, United Auto Workers, the American Iron & Steel Institute, the AFL-CIO, and a host of other labor and industry organizations. It must be passed by the Senate before being sent to the President for his signature.

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