Chinese Currency Coalition
June 29, 2007


The China Currency Coalition, an alliance of industry, agriculture, and worker
organizations whose mission is to support U.S. manufacturing and production,
welcomes the introduction by Congressmen Tim Ryan (D-OH) and Duncan Hunter
(R-CA) of the Currency Reform for Fair Trade Act of 2007 (H.R. 2942).

This WTO consistent legislation updates the Fair Currency
Act of 2007 (H.R. 782), introduced earlier this year by the two congressmen,
which the coalition also strongly supported.

The coalition noted that H.R. 2942, which was introduced on June 28, most
importantly recognizes the hybrid nature of currency manipulation as both a
monetary and trade problem by including the following:

Clearly states that countervailing duty trade cases targeting government
subsidies can be brought against nonmarket economies such as China.
Defines currency misalignment and how to measure the degree of undervaluation.

Provides that currency misalignment by any country is a countervailable government subsidy.

Permits currency misalignment to be taken into account in antidumping cases,
which, according to the coalition, is important because an undervalued
currency allows foreign producers to price their products more cheaply than
would be the case if the currency were properly valued.

Requires the Treasury Department to take more aggressive actions to deal with
currency misalignment than is the case under current law and enhances
Congressional oversight of Treasury Department actions.

AFL-CIO Secretary-Treasurer Richard L. Trumka, one of two co-chairs of the
coalition, requested quick movement on the legislation on behalf of the
federation’s 10 million members. “Our members support this bill, as their jobs
continue to be lost to China through unfair competition. The AFL-CIO
respectfully urges the Ways & Means Committee to move this bill quickly so that
it can be voted on promptly by the full House of Representatives."

Coalition co-chair Doug Bartlett, President of Bartlett Manufacturing Company,
Inc., explained, “Companies like mine, forced to lose business and lay off
valuable employees because of the Chinese government's manipulation of its
currency, need action by Congress now. If U.S. companies and producers cannot
compete fair and square, that’s just competition. But when we start off with a
40% disadvantage because of the Chinese government’s monetary manipulation, that
is not free enterprise. We welcome the continuing leadership of Congressmen Ryan
and Hunter on this vital issue." Bartlett also serves as President of the United
States Business Industry Council, an organization formed to champion the
interests of America’s domestic family-owned and closely-held firms.

Coalition counsel David A. Hartquist noted that Congressmen Ryan and Hunter have
worked diligently on the currency issue since their original bill was introduced
in the last Congress. Said Hartquist, “They recognized early on that effective
WTO consistent trade remedies are necessary to provide relief to beleaguered
American companies, agricultural producers and workers who are being slammed by
unfair Chinese competition.”

The coalition estimates the Chinese currency, the yuan, is undervalued by at
least 40% as a result of the Chinese government's manipulation of its currency.
“Chinese products are frequently priced at less than the cost of the materials
contained in the products,” Hartquist continued. “This is illegal government
subsidization, pure and simple."

China’s trade surplus with the U.S. continues to increase at record levels and
its foreign exchange reserves now exceed $1.2 trillion. Imports from China are
increasing at a rate of one billion a week, while over the last twelve months
more than 150,000 U.S. manufacturing workers have lost their jobs. Also, today
the United States and China share the most imbalanced bilateral trade
relationship in the history of the world. Last year, the U.S. trade deficit with
China was $233 billion and China accounted for 43 percent of our non-petroleum goods deficit.

Richard Trumka heads the labor federation’s Industrial Union Council and is the
youngest secretary-treasurer in AFL-CIO history. Bartlett Manufacturing Company,
Inc., located in Cary, Illinois, has been privately owned and operated since
1952 and is a pioneer in printed circuit board interconnect services. David A.
Hartquist is a partner at Kelley Drye Collier Shannon in Washington, D.C. and
Chairman of the firm’s International Trade and Customs Practice Group
The China Currency Coalition is an alliance of industry, agriculture, and worker
organizations whose mission is to support U.S. manufacturing and production by
seeking an end to Chinese currency undervaluation.