‘Would help create a level playing field, which is all America needs for success’
Oct 11 2011
Washington—U.S. Senator Dianne Feinstein (D-Calif.) released the following statement after bipartisan legislation to end Chinese currency manipulation was approved by the U.S. Senate.
The Currency Exchange Rate Oversight Reform Act of 2011 reforms and enhances oversight of currency exchange rates. The bipartisan bill uses U.S. trade law to counter the economic harm to U.S. manufacturers caused by currency manipulation and provides consequences for countries that fail to adopt appropriate policies to eliminate currency misalignment.
“In my view, this is not about putting sanctions on China or imposing retaliatory tariffs. It is about sending a clear message to Beijing that we are serious about the need to let the renminbi respond fully to market forces.
“As the secretary of the treasury recently said, ‘the undervalued renminbi helps China’s export sector and means imports are more expensive in China than they otherwise would be. It encourages outsourcing of production and jobs from the United States. And it makes it more difficult for goods and services produced by American workers to compete with Chinese-made goods and services.’
“A market-based exchange rate between the renminbi and the dollar will not solve all of our problems, to be sure. But it would help create a level playing field, which is all America needs for success.
“This legislation is a ‘shot across the bow’ as it gives the Treasury Department and the Commerce Department the clear authority to take action against undervalued currencies.
“Dialogue and cooperation have solidified ties between the United States and China, in the process becoming the foundation for what is our most important bilateral relationship. Indeed, this relationship can positively impact the security and economic well-being of both peoples.
“Yet on this matter I believe we must send a clear signal to China that it has to move faster to a market-based exchange rate and encourage Beijing to work with us and our partners in the international community to bring the renminbi into alignment with market forces.”