China Must Follow the Rules
When it comes to trade, China doesn't always fight fairly. For years now, the Chinese government has continuously undervalued their currency, the yuan, against the U.S. dollar. They do this so they can flood the American market with cheap Chinese goods at prices far lower than their American equivalents. Congress has been slow to react to this growing challenge from one of our largest competitors.
Last week, however, I was pleased to be able to support the Currency Reform for Fair Trade Act. The bill provides American businesses the opportunity to request that the U.S. Department of Commerce place what are known as "countervailing duties" against specific exports from a country that is deliberately undervaluing its currency. In the case of China, these duties help offset the price advantage Chinese exporters gain through manipulation of the yuan.
This is a stronger approach with China than the U.S. has taken in the past, and I believe it is a move in the right direction. However, it is just one of the many steps our nation must take to address our trade deficit with China. We must also work to protect U.S. intellectual property rights, eliminate subsidies to Chinese companies, remove artificial barriers to U.S. farm products, and end restraints on exports of American raw materials.
American businesses can compete with anyone in the world, but only if the playing field is level. When countries like China give their companies an unfair advantage in the world economy, America must react to protect our own industries and our own jobs.
Sincerely,
