Washington, DC – Congressman John D. Dingell (D-MI15) made the following remarks after the House passed H.R. 2378, the “Currency Reform for Fair Trade Act”, 348-79. The bill will allow the Secretary of Commerce to assess duties on imports from countries found to have manipulated the value of their currency.
“This bill is about fairness for the working families who depend on manufacturers for their paychecks,” Dingell said. “For too long, they have been undermined by certain countries’ unfair trade practices. We’ve watched China undervalue the renminbi (RMB), putting a drag on the U.S. economic growth and job creation. By undervaluing its currency, China can export cheaper products than it would if the country allowed its currency to be set by the market. We are taking steps today to bring that to an end.”
Many economic experts have stated that a continuation of China’s currency policy could reduce the U.S. GDP by 1.4 percentage points annually. Exports make up approximately one third of China’s GDP, while U.S. exports to China are less than 0.7% of U.S. GDP. Countries like China with large trade surpluses always have more to lose in a trade conflict.
