Press Release/Statement

"China is cheating on trade," said Congressman Hunter. "Through the artificial regulation of their currency, China is strengthening its manufacturing base and increasing America’s trade deficit at the expense of our manufacturers. This is unacceptable and needs to be corrected if American workers want to stay competitive."

While most currencies are set by daily trading and fluctuate considerably, the Chinese yuan has been pegged to the U.S. dollar for more than a decade. Despite a slight revaluation in 2005, the Chinese yuan remains undervalued by as much as 40%.

"In order to compete in the global market, our nation’s manufacturers must overcome a 40% advantage the Chinese government provides its manufacturers," added Hunter. "This practice, when coupled with other tariffs and trade penalties, creates an uneven playing field and a one-way street for trade. However, this one-way street heads right to China.

"This legislation will level the playing field for U.S. workers and reverse the one-way trade deals that are eroding our nation’s manufacturing base."

Specifically, the Fair Currency Act would:

• Define "exchange-rate manipulation" so that a foreign government’s underevaluation of its currency is considered a prohibited export subsidy;

• Set forth guidelines for the U.S. International Trade Commission to follow in determining whether currency manipulation has occurred and its impact on U.S. industry.

The Fair Currency Act, which collected 178 cosponsors in the 109^th Congress (H.R. 1498), awaits consideration by the House Ways and Means Committee.