CHINA CURRENCY COALITION WASHINGTON, D.C.
FOR IMMEDIATE RELEASE
Contact: Meg Mullery 202-342-8439
Latest Trade Data Reflect Negative Economic Impact Caused by
(Washington, D.C.) (December 14, 2005) – Trade data released today by the Department of Commerce confirm that China's miniscule revaluation of its currency had no impact on the U.S./China bilateral trade deficit, according to a coalition of organizations committed to maintaining a strong U.S. industrial base.
The China Currency Coalition, noting that the October deficit with China reached another new high of $20.5 billion, predicts that this year's deficit with China will most likely exceed $205 billion. The coalition contends that China keeps the value of its currency, the yuan, artificially low, giving it an unfair advantage by making Chinese goods cheaper abroad.
The Chinese government revalued the yuan by 2.1 percent on July 21, prompting the coalition to charge that the revaluation was insufficient and useless. Since then, and adding credence to the coalition's charge, China's currency has gained less than 0.4 percent versus the dollar.
According to the coalition, the so-called revaluation underscores China's unwillingness to bring its exchange rate into balance with underlying economic fundamentals to achieve better balance in flows. As a result, Asian currency markets have followed suit, creating even further currency imbalances.
The coalition also reiterated its displeasure with the Bush Administration's refusal to name China as a currency manipulator in a recent report released by Secretary of Treasury John Snow.
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. For more information on the coalition, visit www.chinacurrencycoalition.org.