US Senator asks Trump to name China a ‘currency manipulator’
The Wisconsin Senator, Tammy Baldwin in a letter to US President Donald Trump asked to name China a ‘currency manipulator and to fulfill his election campaign promise. Senator wrote the letter to President Trump amid rising concerns of depreciation of Chinese currency against US dollar.
Senator Baldwin said, “But in three previous reports you have failed to do so. I am concerned that China’s currency actions amount to manipulation, in violation of World Trade Organization (WTO) rules. I ask that you use your upcoming report to make good on your promise to name China a currency manipulator and begin the statutorily-required process to encourage China to correct its undervaluation”
China’s cheating is hurting American businesses. I’m calling on @POTUS to make good on his promise to name China a currency manipulator because it is past time to get tough on China. pic.twitter.com/gYwQdTYhs3
— Sen. Tammy Baldwin (@SenatorBaldwin) October 15, 2018
Baldwin said that depreciation in Chinese Yuan costs high to US to import the Chinese goods and to export goods to China even after additional tariffs were imposed by US administration ion Chinese goods.
She said, “This combined import tariff and export subsidy amounts to a roughly USD59 billion total trade impact — almost double the approximately USD32.5 billion of tariffs the US has levied against Chinese imports under Section 301 of the Trade Act of 1974 — even before accounting for the retaliatory tariffs implemented by China to counteract US tariffs”.
The Wisconsin Senator suggested that naming China a currency manipulator would encourage China for talks and to correct undervaluation of its currency and if talks fail then the President may take remedial action.
She said, “Naming China a currency manipulator would set off bilateral talks required under the Trade Facilitation and Trade Enforcement Act of 2015 –intended to encourage China to adopt policies to correct undervaluation. If the talks fail, the Trade Facilitation and Trade Enforcement Act of 2015 provide additional authorities for the President to take remedial action”.
Since US administration slapped additional tariffs on Chinese imports in a move to balance the current account deficit with China, Chinese currency Yuan has depreciated about 9 percent against US dollar.