Senator Schumer Reacts to China's Currency Move

SENATOR SCHUMER REACTS TO CHINA'S CURRENCY MOVE

Today U.S. Senators Chuck Schumer (D-NY) and Lindsey Graham (R-SC) reacted to China's decision to stop pegging the Yuan to the U.S. dollar and peg it to a basket of foreign currencies, resulting in a 2% revaluation. Schumer and Graham are authors of the bi-partisan Schumer-Graham China Free Trade bill that would require China to stop pegging its currency to the U.S. dollar and let it float on the free market. Sen. Schumer released the following statement:

Schumer stated, "This is a good first step, albeit a baby step. It is smaller than we had hoped, but to paraphrase the Chinese philosophers, a trip of a thousand miles can well begin with the first baby step."

He continued, "The most significant thing about this move is that the Chinese in effect have conceded that pegging their currency is bad for China, for the world economy, and for the U.S., and we are glad they have come to that understanding."

"If there are not larger steps in the future, we will not have accomplished very much. But after years of inaction, this step is welcome," Schumer concluded.

After a June meeting with Treasury Secretary John Snow and Chairman of the Federal Reserve Alan Greenspan, Schumer and Graham agreed to delay a pending July vote on their legislation calling for a 27.5 percent tariff on all Chinese goods.

Chinese currency manipulation was put front and center in the Senate when Schumer and Graham offered their legislation as an amendment to the State Department Authorization Act. A procedural motion to table the amendment was brought forward and soundly defeated in a bipartisan 67-33 vote, a majority of Republicans and Democrats opposed the tabling measure.

http://schumer.senate.gov/SchumerWebsite/pressroom/press_releases/2005/PR41777.China.072105.html