Chairman Levin, Rep. Dahlkemper Talk Chinese Currency Manipulation at Wheatland Tube in Mercer County Print E-mail
Tuesday, 05 October 2010 11:45
Wheatland, Pa.—Congressman Sander Levin, chairman of the Committee on Ways and Means, joined 3rd District Congresswoman Kathy Dahlkemper at Wheatland Tube Co. today to discuss new efforts to fight China’s currency manipulation and its affects on businesses in Western Pennsylvania. Congressman Levin, who represents the 12th Congressional District in Michigan, is the chairman of the House Ways and Means Committee, which has jurisdiction over all tax, trade and economic growth policies.

“China’s persistent manipulation of its currency contributes to the outsourcing of American jobs and poses a very serious problem that requires real action. Thanks to the leadership of people like Congresswoman Dahlkemper, real action is now being taken in Congress to stand up for American workers and businesses. China clearly has an economic strategy to bolster its businesses and workers. Our nation needs to implement an active economic strategy to enforce the rules of trade and allow our businesses and workers to compete and win in the international marketplace. This bill is consistent with America’s international obligations and is a significant step to bring about China’s compliance with theirs,” said Chairman Levin.

The Currency Reform for Fair Trade Act, which passed the House on Sept. 29th and was co-sponsored by Rep. Dahlkemper, will create a more level playing field for American exports by holding China accountable for the manipulation of its currency. Local manufacturers have been hurt by Chinese currency manipulation and other illegal trade practices that give Chinese manufacturers artificially low prices and unfair advantages in the marketplace.

“This currency bill is one of the ways we can stand with our American manufacturers and send a message to China that enough is enough. They need to start playing fair. That’s all our manufacturers ask for and that’s what we’re fighting for—a level playing field. American companies like Penn United and AK Steel can make any product competitively, if not better than anyone else,” said Rep. Dahlkemper. “We’ve led global manufacturing for decades and when trade is fair, American manufacturing thrives and creates the well-paying, family-sustaining jobs that make communities strong. We need those jobs here, and this currency manipulation plan will help keep American jobs right here and stop the loss of jobs to China.”

China suppresses the value of its currency (the Renminbi or RMB), making China’s exports cheaper than they would be if China allowed its currency to be set by the market. China’s currency policy places a drag on U.S. economic growth and job creation and reduces our GDP by 1.4 percentage points annually. According to Fred Bergsten of the Peterson Institute, allowing the RMB to appreciate to its real value would make U.S. manufacturers more competitive and create an estimated 500,000 manufacturing jobs here in the United States.

“We want to thank Chairman Levin for his leadership and Congresswoman Dahlkemper for her support of this common sense bill that will bring back jobs to America. It doesn’t raise taxes, but it will stop China from cheating,” Micky Bolt of the Alliance for American Manufacturing.