Treasury Department Sells Out American Workers
                 and Manufacturers Again
 
Today's report to Congress by Treasury Secretary John Snow stating that China is not manipulating its currency is a slap in the face to America’s workers and manufacturers. The Bush Administration continues to ignore solid trade data from the U.S and 40 of our leading trade partners. Instead, the White House accepts the incorrect trade numbers and empty promises of “flexibility” by the Chinese government. Its logic would be laughable if it were not so dangerous. Unfortunately, it comes as no surprise.

One month ago, Secretary Snow delayed the issuance of this report and, accompanied by a delegation of bankers and financiers, went to China. These are the same firms that have been financing the outsourcing of domestic manufacturing jobs to China. They and the companies they finance have a vested interest in the illegal trade practices of the Chinese government. The bankers say the trip—a trip clearly aimed at financial market access, not currency revaluation—went well.

It hasn’t gone so well at home. September’s monthly trade deficit hit an all time record of $66.1 billion, with China’s share hitting $20.1 billion, up from $18.5 billion in August. Most experts estimate that the yuan is still undervalued by 40 percent. Last summer’s two percent revaluation/float of the yuan proved to be the shell game we thought it would be. The yuan hasn’t moved since that time and the Chinese government says they intend to keep it that way.

Enough is enough. There is a solution in Congress. HR 1498, the Hunter-Ryan bill, is bipartisan WTO compliant legislation that defines currency manipulation, declares it an illegal subsidy and empowers other agencies of government to act.

Congress should take action immediately. It’s time they slapped back.

Contact: Esmeralda Aguilar 202-637-5018