Legislation addresses China currency manipulation

Washington, DC – Today, Rep. Watson voted to create a more level playing field for American exports on the international market by holding China accountable for the manipulation of its currency.  The Currency Reform for Fair Trade Act will give our nation the tools it needs to enforce the rules of trade and address China’s currency manipulation.

“This is about supporting American companies and American manufacturers.  For too long China has gotten away with manipulating its currency to decrease the price of its goods on the world market,” said Rep. Watson.  “I believe American products can and will compete and we’ll see a resurgence in exports and jobs here in America when we make our trading partners play on fair ground.”

China has a long history of suppressing the value of its currency to make its exports cheaper than they would be if China allowed its currency to be set by the market.  That currency manipulation puts a drag on the U.S. economy and reduces our GDP by 1.4 percentage points annually.  By forcing China to compete on an even playing field in the U.S market, we are making our manufacturers more competitive. Economists estimate that revaluation of China’s currency would create 500,000 manufacturing jobs here in the United States.

This legislation is part of our national “Make it in America” manufacturing strategy to create the high-skill, high-wage jobs of the future—promoting American competitiveness, innovation, and exports.   While Republicans are standing on the side of big corporations who outsource jobs overseas, we are working to rebuild American manufacturing and our economy to create jobs that stay here in America.

“Democrats are working to make sure we see the words Made in America more often.  I believe we can lead the world in manufacturing if we make the choices and investments now to rebuild our broken manufacturing industry and put people back to work making things again.  But, Republicans are threatening to take us back by repealing legislation to close the loopholes that encourage companies to ship jobs overseas and voting against legislation to give small American businesses access to the capital they need to expand and grow,” said Rep. Watson.

Our “Make it in America” strategy also includes:

• Providing hometown tax credits to help small businesses hire new employees and sell their products and innovation overseas.
• Closing tax loopholes that encourage corporations to outsource U.S. jobs overseas.
• Boosting incentives to create American clean energy jobs like making state-of-the-art wind turbines and solar panels–paid for by ending corporate welfare to Big Oil.
• Strengthening rules that U.S. and its contractors buy products made in America, especially to build transportation, energy, and communications infrastructure.
• Forcing China and other countries to honor international trade rules or lose American business.
• Giving incentives to hire and re-train America’s returning veterans for new clean energy jobs.
• Strengthening partnerships with businesses to retrain America’s workers for jobs of the future.