In response to proposed legislation aimed at pressuring China to accelerate the appreciation of its currency against the dollar, USCIB has been working with a coalition of other trade associations, led by the U.S.-China Business Council, to oppose the bill.
The Currency Exchange Rate Oversight Reform Act would label currency manipulation as a foreign subsidy, triggering U.S. tariffs on Chinese goods.
In a September 21 letter to Congress, USCIB and over 50 trade associations emphasized the importance of balancing bilateral with multilateral pressure on China.
“In addition to continuing U.S. government efforts, our organizations support strong, coordinated and enhanced multilateral pressure through international organizations such as the G-20 and APEC to promote China’s adoption of market-determined currency and exchange rate policies,” the letter stated.
On October 11, the controversial legislation was voted through the Senate without amendment by a vote of 63-35. One proposed amendment submitted by Senator Orrin Hatch (R – Ut.).had included a multilateral approach to pressuring China on the appreciation of its currency.
Ten Years On: China in the WTO
This year marks the tenth anniversary of China’s membership in the World Trade Organization. In October, as we have done each year since 2001, USCIB delivered a comprehensive statement to U.S. Trade Representative Ron Kirk’s office on China’s compliance with its WTO obligations.
USTR collects this invaluable information from the business community to assist in preparing its report to Congress on China’s WTO compliance. USCIB members provided updated information in several cross-sectoral areas as well as those affecting their specific industries. Among the top concerns were China’s policies and practices in indigenous innovation, intellectual property rights enforcement, transparency and standards.
We thank the USCIB members who took the time to send in updates and help us prepare the statement.
The Treasury Department has announced that it will delay publication of the semi-annual Report to Congress on International Economic and Exchange Rate Policies of the U.S.’s major trading partners until later this year, to allow time to assess progress following several international meetings, including the G20 finance ministers/central banks meetings on October 14-15 and the G20 and APEC summits in November.
USCIB will continue to monitor the progress of the proposed currency legislation and work with industry associations to ensure that the voice of business is heard on the importance of a multilateral approach to China’s management of its currency.
Staff contact: Justine Badimon