WASHINGTON — Four Republican House members reintroduced a bill targeting China's fixed exchange rate policy on Tuesday, as the chorus against the country's trade practices grew louder on Capitol Hill.
Reps. Phil English (R., Pa.), Robin Hayes (R., N.C.), Mark Green (R, Wis.) and Chris Chocola (R., Ind.) introduced an "updated" version of a bill submitted during the last session of Congress and now titled the "Currency Harmonization Initiative through Neutralizing Action Act of 2005."
The legislation aims to impose tariffs if the Treasury Department finds China's exchange-rate policy fits into the World Trade Organization's definition of currency manipulation.
The "CHINA Act" would direct the Treasury Secretary to, within 60 days of enactment, analyze and report to Congress whether China "manipulates" its currency by pegging it to the dollar.
China has maintained an exchange rate of 8.28 yuan to $1 since 1995. U.S. manufacturers and lawmakers complain that China artificially undervalues the yuan, lowering prices of exports by as much as 40 percent and putting U.S. companies at a competitive disadvantage.
"Our legislation sets a standard by which China would be forced to meet WTO standards or will face clear and definable tariff penalties," English said at a press conference in the Capitol. "We believe this legislation, by introducing it with 22 co-sponsors, is going to send a very clear message to the Chinese that Congress no longer will sit back and see our manufacturers take hits from a grossly unfair process."
Treasury Secretary John Snow recently warned China that failing to reform its monetary policy could lead it to be labeled a "manipulator" of currency, which could lead to WTO involvement and potential sanctions.
The CHINA Act is the fifth such bill introduced this session relating to China and its currency and it is difficult to gauge how much traction it will have among competing bills, although a groundswell of Congressional support has risen to take more aggressive action against China. Lawmakers also appear to have more leverage in this session in light of the pressure on the administration to find enough votes to get the Central American Free Trade Agreement approved.
Rep. Bill Thomas (R., Calif.), chairman of the House Ways & Means Committee, recently said Congress should consider taking legislative action against China's currency policy as a way to prod China into adopting a more flexible exchange rate and to sway key lawmakers into the CAFTA camp. English said he agrees with Thomas that it would be helpful to have "a substantive vote on China trade" in the context of the CAFTA debate.
"I think that all anyone really wants in life is to have people understand us for who we actually are, despite everything," says Ruth Negga. The actress talks "Preachers" season 2 and more on WWD.com. #wwdeye (📷: Dan Doperalski)
"That's something that resonates with me too because I'm so locked into a number. If I go over that number it completely ruins my day so it's nice to get detached from the number on the scale." - Chelsea Handler on Kelly LeVeque's book "Body Love." #wwdeye (📷: John Salangsang)