Larsen: China Must Move Faster to Reform its Currency Policy

Today, U.S. Representative Rick Larsen (WA-02) released the following statement after the House Ways and Means Committee voted to send Chairman Levin's Substitute Amendment to H.R. 2378, the Currency Reform for Fair Trade Act of 2009, to the House floor. This bill establishes a less restrictive process for the Department of Commerce to determine whether a country is subsidizing exports by manipulating its currency and to impose trade sanctions on these countries. Rep. Larsen is the co-chair of the bipartisan U.S. China Working Group. The USCWG includes 63 Members from the U.S. House of Representatives and focuses on educating Members and staff about the U.S.-China relationship through meetings and briefings with academic, business and political leaders from the United States and China. Larsen represents the 2nd Congressional District of Washington state. China is the largest and most rapidly growing export market for Washington state. One in three jobs in Washington state is tied to trade, and from 2000 - 2009, Washington state exports to China grew by 379 percent.

"China must move faster to reform its currency policy.

"China's currency policy is not only hurting U.S.-China trade because it is making products manufactured in the U.S. more expensive to export, but it is also hurting their own economic interest.

"Currency revaluation is one of the few tools that China has left in its toolbox to tame inflation.

"I urge the Administration to intensify its multilateral efforts to increase international pressure on China to revalue its currency.

"It is my hope that China will allow its currency to appreciate faster so unilateral actions by the U.S. government, like those described in the bill passed today by the Ways and Means Committee, will not be utilized."

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