CHINA CURRENCY COALITION
FOR IMMEDIATE RELEASE
Contact: Meg Mullery 202.342.8439
China's Manipulated Currency Grows U.S./China Trade Deficit
(Washington, D.C.) (June 9, 2006) - China's undervalued currency continues its march toward producing a U.S./China trade deficit that will reach new heights, according to a U.S. coalition seeking an end to Chinese currency manipulation.
The China Currency Coalition pointed to today's Department of Commerce release of April trade data that indicate the U.S. deficit with China increased to $17 billion in April, creating a cumulative deficit of $64.4 billion for the first four months of this year. At this rate, according to the coalition, the U.S. trade deficit with China will increase to about $230 billion by the end of the year. This would be the highest trade deficit with any country and more than double the deficit with Japan.
"The escalating trade deficit with China should be sobering news to Secretary-designate of the Treasury Henry Paulson," said coalition spokesperson David A. Hartquist. "These deficits demonstrate that the U.S. manufacturing base is being continually eroded by China's exchange rate policies that subsidize China's exports, tax U.S. exporters, and subsidize foreign direct investment into China."
Further proof of the negative impact of China's exchange rates policies can be seen in official government employment data, according to Hartquist. The Bureau of Labor Statistics released employment data for May indicating that 14,000 manufacturing workers lost their jobs.
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. The coalition charges that the yuan is undervalued by about 40%.
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. office of Kelley Drye Collier Shannon. For more information on the coalition, visit www.chinacurrencycoalition.org.