WASHINGTON — A bill introduced in the House Thursday would make it easier for U.S. companies to file for relief against subsidized imports from China.
Rep. Duncan Hunter (R., Calif.) and Rep. Tim Ryan (D., Ohio) cosponsored the China Currency Act to address China’s fixed currency rate, which they say contributed to job losses and a record $162 billion trade deficit with China last year.
“We have a situation with a competitor where an illicit subsidy is taking place to the tune of 40 percent, and the idea of doing away with that illicit subsidy — currency manipulation — should appeal to Republicans,” Hunter, chairman of the Armed Services Committee, said at a news conference.
The lawmakers are among critics who maintain China’s fixed currency artificially lowers the price of Chinese goods. Many trade experts and politicians hope that floating the yuan will cause it to rise in value from its current level of 8.28 yuan to the dollar.
Hunter and Ryan said their legislation would “hold China accountable” by declaring currency manipulation illegal under U.S. trade laws. There are a number of China trade-curbing bills pending, but the Bush administration and the GOP-controlled Congress haven’t acted on them.
However, the administration on Monday took an unprecedented step against China when it began a self-initiated review of surging Chinese apparel and textile imports to consider whether to impose temporary safeguard quotas on $624.5 million worth of shipments of certain categories.
The administration has refused to intercede on the currency issue, opting instead to negotiate with the Chinese and prod them into change, and Republican Congressional leaders generally have backed that approach.
Responding to a reporter’s question, Ryan said there is a “good and powerful list” of bipartisan support.
“As far as the administration trying to blow us off, I think there is too much pressure,” he said. “We are starting to see a lot of momentum among small business owners, who are traditionally Republican, and they don’t feel they are getting the help from the White House that they deserve.”
Ryan said the strategy is to build a “grassroots coalition” and that there is current support from the AFL-CIO and U.S. Business and Industry Council.
Issa Rae stopped by WWD's NYC headquarters to talk about season two of "Insecure," which premieres this Sunday on HBO. Click link in bio for all the details. #wwdeye (📷: @jgreenery; Styled by @mayteallende)
A Stella McCartney sketch of a custom dress made from protein-based silk in partnership with biotech lab Bolt Threads. The dress will be displayed at The Museum of Modern Art's upcoming design exhibition, "Items: Is Fashion Modern?"