News from U.S. Senator Olympia J. Snowe
Chair, Senate Committee on Small Business and Entrepreneurship
For Immediate Release: May 10, 2006
Contact: Chris Chichester, 202-228-5843

Snowe: Chinese Government’s Unfair Trade Practices Costing American Jobs
Cites Record Trade Surpluses and Calls For Currency Manipulation Designation By Treasury Department

(Washington, D.C.) – U.S. Senator Olympia J. Snowe (R-Maine), Chair of the Senate Committee on Small Business and Entrepreneurship, issued the following statement in response to the Treasury Department’s Report To Congress On International Economic and Exchange Rate Policies, which failed to designate the Chinese government a currency manipulator:

“The Treasury Department has once again failed to recognize what the evidence demonstrates: Chinese government leaders flagrantly manipulate their currency. Although China continues to offer vague promises for change at some undetermined time in the future, our nation's patience has worn thin. We cannot allow China to dictate the terms for complying with their international obligations. Congress must act immediately to ensure the viability and integrity of our manufacturing industry base, which is vital to job security and a strong national defense.

“According to Chinese trade data, China’s trade surplus with the rest of the world tripled to a record $102 billion in 2005 and its trade surplus with the United States stood at another record, $114.7 billion. Equally alarming, official U.S. trade data finds that China registered a bilateral surplus of $206 billion in 2005.

“The Chinese government’s unwillingness to comply with its international obligations raises serious questions about its commitment to compete fairly in the global marketplace. It is apparent that the country’s leadership is unwilling to relinquish its unfair trade advantage by allowing for a more flexible currency. Now is the time for Congress to act to put a stop to China’s currency manipulation. Without a response, American jobs will continue to be in jeopardy.”

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