June 29, 2011
Business Presses for Multilateral Action on China’s Currency
USCIB and an array of other business groups have written to the House and Senate leadership urging that China’s undervalued currency be addressed in the context of multilateral pressure rather than unilateral U.S. punitive measures. There are a number of proposals in Congress that would seek to compel a revaluation of the yuan through the imposition of new trade barriers to Chinese goods.
“Like Congress and the Administration, we agree that China needs a yuan exchange rate that responds to trade flows and that China should move steadily towards a market-determined exchange rate,” the business groups wrote. “In addition to continuing U.S. government efforts, our organizations support strong, coordinated and enhanced multilateral pressure through multiple international organizations such as the G-20 and APEC to achieve concrete progress on China’s currency and exchange rate policies.”
The letter warned that unilateral efforts to impose new tariffs on Chinese goods could draw retaliatory moves that would harm U.S. exports to this fast-growing market. “Moreover, it is doubtful that U.S. action to countervail undervalued currency could meet the WTO’s standards for the application of countervailing duties,” the groups said.
Staff contact: Justine Badimon
Business letter on China’s currency
More on USCIB’s China Committee
