Bipartisan Group Of Senators Intro Bill To Combat China's Weak Yuan

By Lisa Kellman

A bipartisan group of senators unveiled legislation Thursday seeking retribution for China’s alleged currency manipulation.

The bill comes after the Economic Policy Institute’s report Tuesday showed that America lost 2.79 million jobs to China after it joined the World Trade Organization in 2001. By pegging the Yuan to the U.S dollar, China created a rapidly increasing U.S-China trade deficit and sending American jobs abroad, according to the report.

Sens. Chuck Schumer (D-N.Y.) an Sherrod Brown (R-Ohio) are urging Congress to support legislation that would push China to raise the value of its currency, a move the New York Demcorat has pursued on multiple occasions.

“They get away with economic murder,” Schumer said. “We are fed up [and] we are not going to take it anymore.”

Joining Schumer in support of this measure were Sens. Debbie Stabenow (D-Mich.), Bob Casey (D-Pa.) and Republican Sens. Linsey Graham (R-S.C.), Richard Burr (R-N.C.) and Jeff Sessions (R-Ala.).

Casey said the act would “vigorously address currency misalignments that unfairly and negatively impact U.S trade.”

The Senate believes that a reevaluation of the Yuan and satellite currencies to their equilibrium level would increase U.S. GDP enough to create 2.25 million jobs. If passed, the bill would “force action against China’s currency manipulation” said Casey and impose import duties to retaliate against countries that keep their currencies undervalued.

Although Schumer and other senators believe the bill will receive the necessary 60+ votes, others worry that the bill will have adverse effects if enforced.

More than 50 U.S businesses including the American Chambers of Commerce in China and the National Foreign Trade Council wrote to senators Wednesday opposing legislation targeting China’s currency.

“Unilateral legislation on this issue would be counterproductive and is unlikely to create any incentive for China to move expeditiously to modify its exchange policies,” the statement read.

Mark Price, a labor economist from the Economic Policy Institute, agreed that, while currency manipulation has given China an “unfair advantage in our trading relationship,” China is highly unlikely to change their policies because U.S. trade deficits benefit their own economy.

The Senate will push for a vote on the floors of both Houses before the end of the year.