On September 22, a bipartisan group of senators unveiled a currency bill that combines elements of China currency legislation passed by the House last year with those of a Senate China currency bill previously championed by Sen. Charles Schumer (D-NY) and Lindsey Graham (R-SC). Senate Majority Leader Harry Reid (D-NV) said that he would push for a vote on China currency legislation in October ahead of votes on the pending FTAs. They predicted the bill's approval by a substantial bipartisan majority when it comes up for a vote in the coming weeks.
On September 21, the U.S. Chamber, along with 50 other organizations, sent a letter to Senator Reid and Minority Leader McConnell (R-KY) urging them to not support unilateral legislation aimed at pressuring China to accelerate the appreciation of its currency against the dollar. The Chamber and other signatories believe that China should move more expeditiously toward a market-determined RMB exchange rate, and the Chamber supports strong bilateral and multilateral efforts on this front. However, the unilateral tariff legislation will undermine U.S. economic interests rather than advancing them. Legislation could chill U.S. exports to China, which is our fastest growing major export market; freeze discussion and progress on a host of other important issues in our bilateral trade relationship; and expose the U.S. to criticisms of adherence to international trade norms.
