Graves Votes to Hold China Accountable for Currency Manipulation

Press Release

Yesterday, U.S. Congressman Sam Graves voted in favor of H.R. 2378, the Currency Reform for Fair Trade Act. The bill provides American businesses the opportunity for to petition the U.S. Department of Commerce to consider placing "countervailing duties" against exports from a country that is deliberately undervaluing its currency. In the case of China, these duties help offset the price advantage Chinese exporters gain through manipulation of China's currency, the yuan.

"This legislation is aimed directly at the Chinese government for continually undervaluing the yuan against our dollar," Graves said. "American workers and manufacturers can compete with anyone in the world, but only if the playing field is level. Right now, the Chinese are keeping the yuan artificially low so they can flood the U.S. with their cheap goods."

The Currency Reform for Fair Trade Act allows the U.S. Department of Commerce to impose countervailing duties on a case-by-case basis. This more tailored approach is an important clarification of the Department's authority and ensures our nation's trade policy remains consistent with our World Trade Organization obligations, while also strengthening our stance on China's currency policies.

"I fully support this stronger approach when dealing with China on this issue," Graves added. "However, it is important to note that approval of this legislation is just one of the many steps our nation must take to address our trade deficit with China. I will continue to work with my colleagues in Congress to protect U.S. intellectual property rights, eliminate subsidies to Chinese companies, remove artificial barriers to U.S. farm products, and end restraints on exports of American raw materials."

The Currency Reform for Fair Trade Act was approved in the House of Representatives and now awaits consideration in the Senate.

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