WASHINGTON - Congress is poised to fight what critics call China's manipulation of its currency, a key lawmaker promised U.S. suppliers.
Critics, including many suppliers, say China's currency policies indirectly subsidize Chinese exports. At the same time, they say, the policies hurt foreign companies that seek to sell products in China.
China artificially pegs the value of its currency at 8.28 yuan to the U.S. dollar - 15 percent to 40 percent below its actual value, critics charge.
Rep. Mike Rogers, R-Mich., said the House of Representatives soon will consider a bill that would pressure China to revalue its currency. He did not offer details.
Still, nearly 200 members of the Motor & Equipment Manufacturers Association cheered Rogers' pledge. The suppliers made their annual lobbying trip to the nation's capital this month.
Ann Wilson, MEMA's vice president for government affairs, said currency issues are "a major concern of our members." But they believe any proposal from Congress must comply with World Trade Organization rules and must be acceptable to the Bush administration, she said. It should not focus on a single country, she added.
A Senate proposal would impose a 27.5 percent tariff on imports from China if its leaders do not agree to negotiate a revaluation of the yuan.
The Bush administration does not accuse China of currency manipulation. It says China engages in "distortionary policies" that should be addressed through diplomacy.
Other matters on the suppliers' agenda during their second annual legislative summit, June 8-9, included: