China's Currency Manipulation Has Cost 160,000 American Jobs

By: EW News Desk Team   Date: 4 October 2011

About The Author

EW News Desk Team

Always on the look out for the latest news to monitor the state of the world economy.

EconomyWatch, News Desk Team

 

  • Dot Div
  •      
04 October 2011

 According to Senator Chuck Schumer, China's currency manipulation has cost New York more than 160,000 jobs in the last decade. Schumer also said that China is engaged in intellectual property theft and other forms of manipulation that give them an unfair advantage over American competitors.

Sen. Schumer's statements have come after US senators voted on Monday to open a week of debate on the Currency Exchange Rate Oversight Reform Act of 2011, which would allow the US government to slap countervailing duties on products from countries found to be subsidizing their exports by undervaluing their currencies. 

The bill, which allows lawmakers the space to deflect some of the blame for the weak US economic performance, advanced in the Democratic-controlled Senate with a strong bipartisan vote of 79-19. But House Republican leaders have shown no interest in bringing it to a vote. 

"Our economy is crying out for action. It's about time we became Uncle Sam instead of Uncle Sap," Schumer said. 

In response, China has warned Washington that it is "adamantly opposed" to a proposed US bill at forcing Beijing to let its currency rise, saying that its passage could lead to a trade war between the world's top two economies.

In a coordinated response, the Chinese central bank and ministries of commerce and foreign affairs have accused Washington of "politicizing" currency strategies. 

"By using the excuse of a so-called 'currency imbalance', this will escalate the exchange rate issue, adopting a protectionist measure that gravely violates WTO rules and seriously upsets Sino-US trade and economic relations. China expresses its adamant opposition to this," foreign ministry spokesperson Ma Zhaoxu said in a statement posted on China's official government website on Tuesday.

Ma also urged US legislators to "proceed from the broader picture of Sino-US trade and economic cooperation" and to "forsake protectionism."

US lawmakers, eyeing 2012 elections, have said that the undervalued yuan had cost American jobs and that a fairer exchange rate would help an annual trade gap of US$250 billion. 


  • Dot Div
  •      

Most Popular in World Economy

Related Links
blog comments powered by Disqus