CHINA CURRENCY COALITION WASHINGTON, D.C.
FOR IMMEDIATE RELEASE
Contact: Meg Mullery 202.342.8439
Undervalued Yuan Linked to Record U.S./China Bilateral Trade Deficit
(Washington, D.C.) (February 10, 2006) - Responding to today's Commerce Department report of a record trade deficit with China, the China Currency Coalition predicted that the bilateral trade deficit will continue spiraling out of control and more than double in five years unless China stops anchoring its export policy to its undervalued currency.
The net result, according to David A. Hartquist, spokesperson for the coalition, is more lost manufacturing jobs and economic opportunities for hard working Americans. He noted that the manufacturing sector lost 102,000 jobs in 2005.
The U.S. trade deficit with China ballooned to a record $201.6 billion last year, the highest deficit ever recorded with any country, and 24.5 percent above the previous record of $161.9 billion set in 2004. "The coalition calls on the Bush Administration, the United States Congress, and global financial institutions to take a harder line against this unfair trade practice," said Hartquist. "By artificially undervaluing the yuan, China artificially underwrites its manufacturing sector." Economists believe that China's currency is undervalued by at least 40%.
The China Currency Coalition is an alliance of industry, agriculture, and worker organizations whose mission is to support U.S. manufacturing by seeking an end to Chinese currency manipulation. AFL-CIO Secretary-Treasurer Richard L. Trumka and Doug Bartlett, Chairman of Bartlett Manufacturing Company, Inc., in Cary, Illinois, serve as co-chairs of the coalition. David A. Hartquist, counsel to the coalition, heads the international trade section of the Washington, D.C. law firm Collier Shannon Scott, PLLC. For more information on the coalition, visit www.chinacurrencycoalition.org.