John Boehner: Fixing Chinese Currency Manipulation is ‘Dangerous’
October 5, 2011
|Boenher opposes efforts to curb China from undervaluing its currency.
Experts predict that more than 1 million American jobs could be created if the United States took steps to challenge China’s practice of artificially undervaluing its currency, the yuan, which undermines American manufacturing.
Legislation was introduced in Congress last fall to do just that, but Republican leader and House Speaker John Boehner said Tuesday that it would be “dangerous” to confront Chinese currency manipulation.
The Ohio Republican said after a closed GOP conference meeting Tuesday that he’s concerned about China’s currency, but legislating to fix it is “well beyond” what “Congress ought to be doing.”
The disastrous effect Chinese currency manipulation has on the American economy is described in the November 2010 issue of the Electrical Worker:
>First, Chinese imports are 35 percent cheaper in the U.S. than they would be if the two nations had a fair trading relationship. Second, U.S. manufacturers are tempted to spend more dollars outsourcing operations to China. Not only is labor cheaper and government regulation of environmental quality and labor standards weaker than at home, but the dollar buys more equipment abroad.
And almost no state has been harder hit by the outsourcing of American manufacturing than Boehner’s home state of Ohio.
While the House Speaker has been missing in action when it comes to confronting China’s unfair trading tactics, other officials have been in forefront of trying to fix the broken system.
Bill sponsor Rep. Tim Ryan (D-Ohio) says:
American workers are being cheated by the dishonest tactics China uses to undermine the U.S. manufacturing sector. Last year, when Democrats controlled Congress, we passed – with overwhelming support – a bill that would help bolster American manufacturers by cracking down on China’s currency manipulation. Unfortunately, since Republicans have taken control of the House, they have refused to bring the bill back for a vote. Why are they covering for China instead of standing up for American workers?
Photo used under a Creative Commons license from Flickr user SpeakerBoehner.