"Another major concern about the U.S. response is whether the U.S. should act unilaterally or multilaterally through international organizations like the IMF and WTO"
March 24, 2010Witnesses at House Ways and Means Committee Hearing Allege China Undervalues the Yuan – manipulates Currency
While there was some disagreement over the effects of China’s currency policy on the U.S. economy, there was overwhelming support among Representatives and witnesses that China manipulates its currency and keeps the Yuan undervalued to encourage export growth.
Most Representatives and witnesses also agreed that the Administration should label China a “currency manipulator” in the upcoming April 15th Treasury Department report. However, there appears to be a wide variety of views on how the U.S. should proceed to correct the problem.
The witnesses tended to suggest that Congress should not consider any legislative responses at this time but should use their oversight power to influence the Administration to take action.
Another major concern about the U.S. response is whether the U.S. should act unilaterally or multilaterally through international organizations like the IMF and WTO.
It was generally agreed that a unilateral approach carries more risk of retaliation from the Chinese but that a multilateral approach would take more time to succeed.
Committee members seemed very engaged on the topic but want to wait for the Administration’s position in the upcoming Treasury report before taking further action. Several bills are pending and another is expected soon from the Senate on this issue.
http://tradeandpolitics.strtrade.com/2010/03/24/update-witnesses-at-house-ways-and-means-committee-hearing-allege-china-undervalues-the-yuan-manipulates-currency/
(Wednesday March 24th hearing) ~ Sen. Stabenow on Currency Exchange Rate Oversight Reform Act
March 24th ~ Hearing on China’s Exchange Rate Policy
