House Approves Currency Legislation Targeting China .- On September 29, the House passed H.R. 2378 as amended by Ways and Means Committee Chairman Sander Levin (D-MI). The vote passed by a vote of 348 to 79, with 249 Democrats and 99 Republicans supporting the bill. The "Currency Reform for Fair Trade Act" proposes to amend the Tariff Act of 1930 to clearly allow countervailing duties on products entering the United States from countries whose currency is so fundamentally undervalued that it functions as a subsidy for their exports.
The U.S. Chamber joined forces with 35 other trade associations on September 28 to send a letter to the House leadership opposing H.R. 2378. The Chamber agrees that China should move rapidly towards a market-determined exchange rate but argues the legislation will not help achieve that goal; moreover, Chamber members are concerned that the bill, if enacted, will undermine efforts to address other challenges in the bilateral relationship.
• Chamber-endorsed
letter opposing H.R. 2378
• The
Chairman's Amendment in the Nature of a Substitute to H.R. 2378
• Ways and Means
Summary of H.R. 2378 and Amendment
Senator Charles Schumer (D-NY) and Senator Sherrod Brown (D-OH)
stated that the Senate will not take up the House legislation in
advance of the election. However, both have indicated their intent to
push for Senate consideration of companion legislation in a likely
"lame duck" session following the November 2 elections.
For analysis of these hearings, please contact Anna Tucker to subscribe to the Chamber's China Policy Update.
