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The reasons China currency manipulation/misalignment is getting so
much attention are: (1) its true, (2) its a fundamental and major
problem, and (3) many economic sectors are working together to correct
it. The battle is not easy because the multinationals outsource
to China and sell back to the U.S. gaining the benefit of currency
manipulation.
This is not an anti-China position. China
should grow, but it should do so in a balanced way, without cheating,
without harming other countries, and without harming workers and the
environment.
The Copper & Brass Fabricators Council and China Currency Coalition has this press release:
***
FOR IMMEDIATE RELEASE
Contact: John Arnett 202.833.8575
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Copper and Brass Fabricators Council Joins the China Currency
Coalition to Urge Congress to Act Promptly to Address Competitive
Currency Depreciation by Other Countries,
As Dangerous Trade and Monetary Imbalances Worsen
(Washington, D.C.) (January 16, 2008) – Citing the most recent trade
data released, the Copper and Brass Fabricator’s Council today joined
the China Currency Coalition to encourage Congress to pass legislation
promptly and effectively addressing the serious and still growing
problem of currency undervaluation by China and other countries. (read more)
Speaking on behalf of the Council’s member
companies, who produce a broad array of copper and brass mill products,
Joseph L. Mayer, President of the Council, stated, “The Council joins
the China Currency Coalition in calling for immediate legislative
action to address the trade imbalances created by the Chinese
government’s illegal subsidization of its exports through manipulation
of its currency. Today, the U.S. and China are participating in
the most unbalanced bilateral trade relationship in the history of the
world. With China’s currency, the yuan, undervalued by an
estimated 40%, Chinese products are frequently priced at less than the
cost of the materials contained in the products, including brass mill
products. Legislation is urgently needed to force a correction in
the exchange rates.”
Speaking on behalf of the China Currency Coalition’s
U.S. manufacturers, farmers, and workers, Richard L. Trumka, co-chair
of the coalition and AFL-CIO Secretary-Treasurer, commented,
“November’s trade numbers tell us that the U.S. 2007 trade deficit with
China is headed to a record $260 billion. This means that China
will account for more than 50 percent of our manufacturing goods
deficit. This is an unsustainable trade crisis that is driven by
China’s illegal intervention in currency markets to keep the yuan
undervalued. Congress needs to act now to hold China accountable.”
Added Doug Bartlett, co-chair of the coalition,
Chairman of Bartlett Manufacturing Company, Inc., in Cary, Illinois,
and Chairman of the U.S. Business and Industry Council, “China’s
foreign reserves are now approaching an extraordinary and totally
unprecedented $1.4 trillion. As Congress reconvenes, it is
critical for U.S. companies and workers that legislation be passed
without delay that will address both the trade and monetary aspects of
currency misalignment and manipulation. This sort of mercantilist
behavior should be labeled for what it is and must be countered in
order for the U.S. economy and dollar to regain strength.”
Noted David Hartquist, the coalition’s legal
counsel, “The longer this situation is allowed to go unchecked, the
more risky and precarious this predicament will become. At least
for now, China has decided for its own reasons to allow the yuan to
rise in the past month or two somewhat more quickly than previously,
but the coalition continues to believe that the yuan remains
undervalued with respect to the U.S. dollar by about 40 percent.
We respectfully urge that Congress and the President take remedial
action here.”
The Copper and Brass Fabricators Council, Inc., is a
trade association that represents the principal copper and brass mills
in the United States. These mills together account for the
fabrication of more than 80% of all copper and brass mill products
produced in the United States, including sheet, strip, foil, bar, rod
and both plumbing and commercial tube. These products are used in
a wide variety of applications chiefly in the automotive, construction
and electrical/electronics industries.
David A. Hartquist is Senior Partner and Chairman of
the International Trade Practice Group at Kelley Drye Collier Shannon
in Washington, D.C.
The China Currency Coalition is an alliance of
industry, agriculture, services, and worker organizations whose mission
is to support U.S. manufacturing and production by seeking an end to
Chinese currency undervaluation. Additional information on the
coalition can be found on its Web site: www.chinacurrencycoalition.org.
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