WASHINGTON, D.C. — U.S. Sen. Sherrod Brown (D-OH) issued the following statement following China’s devaluation of its currency:
“China will stop at nothing to give its exports an unfair advantage in the global marketplace and this devaluation by the Chinese government is concerning. China has committed to allowing its currency to appreciate, and the true test of this commitment is whether the yuan will be allowed to appreciate in the long term. Today’s action comes after a period of appreciation, and it remains to be seen if today’s move is a one-time action or the beginning of prolonged intervention. Given China’s history of currency manipulation, this depreciation must be monitored closely. In addition, the U.S. needs to ensure American businesses and workers have a backstop to fight back against currency manipulation. That means passing our bipartisan bill to punish currency manipulation and demanding rigorous currency disciplines in TPP, which China may seek to join at a later date.”
Brown is one of the lead sponsors of the bipartisan Currency Undervaluation Investigation Act, It would use U.S. trade law to counter the economic harm to U.S. manufacturers caused by currency manipulation, and provide consequences for countries that fail to adopt appropriate policies to eliminate currency misalignment. The bill would require the Commerce Department to treat currency manipulation as an illegal subsidy and impose applicable duties.