[Congressional Record Volume 149, Number 147 (Monday, October 20, 2003)]
[Senate]
[Page S12889]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. VOINOVICH (for himself and Mr. DeWine):
  S. 1758. A bill to require the Secretary of the Treasury to analyze 
and report on the exchange rate policies of the People's Republic of 
China, and to require that additional tariffs be imposed on products of 
that country on the basis of the rate of manipulation by that country 
of the rate of exchange between the currency of that country and the 
United States dollar; to the Committee on Finance.
  Mr. VOINOVICH. Mr. President, today Senator DeWine and I have 
introduced legislation that will help level the playing field for 
American manufacturers futilely struggling to keep pace with their 
Chinese competitors. My legislation, the Currency Harmonization 
Initiative Through Neutralizing Action (CHINA) Act of 2003, would allow 
for the use of tariffs to punish China for unfair trade practices that 
makes Chinese exports cheaper, in effect subsidizing them, and U.S. 
exports more expensive. Representatives English, Ballenger, and Mark 
Green, my colleagues on the other side of the Capitol, have already 
introduced this legislation in that body.
  I am deeply concerned with the harm that the People's Republic of 
China (China) is doing to our economy by pegging the value of its 
currency, the renminbi, to the U.S. dollar because Ohio is a 
manufacturing State. Manufacturing contributes to the quality of life 
in Ohio by providing more than one million jobs for Ohio workers, an 
annual payroll of more than $45 billion, the second highest weekly 
earnings of any economic sector, support for local communities and 
schools with more than $1 billion in corporate franchise and personal 
property taxes, and more than $26 billion in products to more than 196 
countries.
  After a significant recession in 2001, the 2002-2003 manufacturing 
recovery has been the slowest on record; during this time, roughly 2.7 
million jobs have been lost. In Ohio, we have lost 170,000 
manufacturing jobs since July 2000--that's nearly 16 percent or one out 
of six. Over the past year, I have held numerous listening sessions 
throughout the State of Ohio to hear from these manufacturers and see 
what they attribute this loss of jobs to. Overwhelming, I have heard 
that China, and particularly its policy of pegging its currency to the 
dollar, is one of their top concerns and is costing Ohio manufacturing 
jobs. It is these concerns which have led me to introduce this 
legislation.
  If the value of the renminbi is allowed to float freely, as the 
currencies of our other major trading partners do, it would reflect 
China's enormous trade surplus and increase significantly in value. 
China's systematic undervaluation of its currency makes its exports 
less expensive and puts U.S. workers at a severe disadvantage. This is 
both unfair and unacceptable.
  I have long advocated free trade, provided it is fair trade. China's 
currency policy clearly tilts the international playing field against 
workers in Ohio and across the entire United states. This is 
unacceptable. As a major international trading nation, China's currency 
should be allowed to float and to have its value reflect its net trade 
positions with other nations. This is only fair.
  My bill will help level the playing field by requiring the Secretary 
of the Treasury, within sixty days of enactment, to analyze and report 
to Congress whether China is manipulating its currency to achieve an 
advantage in trade. If the Secretary finds manipulation, the report to 
Congress will indicate the degree of manipulation against the dollar. 
Within thirty days after reporting manipulation to Congress, the 
Secretary is required to levy tariffs equal to the percentage of 
manipulation found. This is in addition to tariffs currently in place 
on Chinese imports.
  Furthermore, the Treasury Secretary is directed to report to Congress 
thereafter on a yearly basis from date of enactment. Finally, the 
legislation expresses the sense of Congress that the Administration 
should pursue all means available (WTO, IMF and Sections 301-310 of the 
Trade ACt of 1974) to remedy China's currency manipulation.
  If we are to stop the hemorrhaging of American manufacturing jobs, we 
must take strong measures to persuade China to abandon its peg policy 
and allow its currency to be set in the free and open marketplace. This 
is exactly what my legislation does.
  I would ask that my colleagues, especially from those States that are 
feeling the effects of this manufacturing crisis deeply, support this 
legislation and consider cosponsoring it.
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