[Congressional Record (Bound Edition), Volume 156 (2010), Part 12]
[House]
[Pages 17034-17049]
[From the U.S. Government Publishing Office, www.gpo.gov]




                   CURRENCY REFORM FOR FAIR TRADE ACT

  Mr. LEVIN. Mr. Speaker, pursuant to House Resolution 1674, I call up 
the bill (H.R. 2378) to amend title VII of the Tariff Act of 1930 to 
clarify that fundamental exchange-rate misalignment by any foreign 
nation is actionable under United States countervailing and antidumping 
duty laws, and for other purposes, and ask for its immediate 
consideration.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. Pursuant to House Resolution 1674, the 
amendment in the nature of a substitute recommended by the Committee on 
Ways and Means, printed in the bill, is adopted and the bill, as 
amended, is considered read.
  The text of the bill, as amended, is as follows:

                               H.R. 2378

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Currency Reform for Fair 
     Trade Act''.

     SEC. 2. CLARIFICATION REGARDING DEFINITION OF COUNTERVAILABLE 
                   SUBSIDY.

       (a) Benefit Conferred.--Section 771(5)(E) of the Tariff Act 
     of 1930 (19 U.S.C. 1677(5)(E)) is amended--
       (1) in clause (iii), by striking ``and'' at the end;
       (2) in clause (iv), by striking the period at the end and 
     inserting ``, and''; and
       (3) by inserting after clause (iv) the following new 
     clause:
       ``(v) in the case in which the currency of a country in 
     which the subject merchandise is produced is exchanged for 
     foreign currency obtained from export transactions, and the 
     currency of such country is a fundamentally undervalued 
     currency, as defined in paragraph (37), the difference 
     between the amount of the currency of such country provided 
     and the amount of the currency of such country that would 
     have been provided if the real effective exchange rate of the 
     currency of such country were not undervalued, as determined 
     pursuant to paragraph (38).''.
       (b) Export Subsidy.--Section 771(5A)(B) of the Tariff Act 
     of 1930 (19 U.S.C. 1677(5A)(B)) is amended by adding at the 
     end the following new sentence: ``In the case of a subsidy 
     relating to a fundamentally undervalued currency, the fact 
     that the subsidy may also be provided in circumstances not 
     involving export shall not, for that reason alone, mean that 
     the subsidy cannot be considered contingent upon export 
     performance.''.
       (c) Definition of Fundamentally Undervalued Currency.--
     Section 771 of the Tariff Act of 1930 (19 U.S.C. 1677) is 
     amended by adding at the end the following new paragraph:
       ``(37) Fundamentally undervalued currency.--The 
     administering authority shall determine that the currency of 
     a country in which the subject merchandise is produced is a 
     `fundamentally undervalued currency' if--
       ``(A) the government of the country (including any public 
     entity within the territory of the country) engages in 
     protracted, large-scale intervention in one or more foreign 
     exchange markets during part or all of the 18-month period 
     that represents the most recent 18 months for which the 
     information required under paragraph (38) is reasonably 
     available, but that does not include any period of time later 
     than the final month in the period of investigation or the 
     period of review, as applicable;
       ``(B) the real effective exchange rate of the currency is 
     undervalued by at least 5 percent, on average and as 
     calculated under paragraph (38), relative to the equilibrium 
     real effective exchange rate for the country's currency 
     during the 18-month period;
       ``(C) during the 18-month period, the country has 
     experienced significant and persistent global current account 
     surpluses; and
       ``(D) during the 18-month period, the foreign asset 
     reserves held by the government of the country exceed--
       ``(i) the amount necessary to repay all debt obligations of 
     the government falling due within the coming 12 months;
       ``(ii) 20 percent of the country's money supply, using 
     standard measures of M2; and
       ``(iii) the value of the country's imports during the 
     previous 4 months.''.
       (d) Definition of Real Effective Exchange Rate 
     Undervaluation.--Section 771 of the Tariff Act of 1930 (19 
     U.S.C. 1677), as amended by subsection (c) of this section, 
     is further amended by adding at the end the following new 
     paragraph:
       ``(38) Real effective exchange rate undervaluation.--The 
     calculation of real effective exchange rate undervaluation, 
     for purposes of paragraph (5)(E)(v) and paragraph (37), 
     shall--
       ``(A)(i) rely upon, and where appropriate be the simple 
     average of, the results yielded from application of the 
     approaches described in the guidelines of the International 
     Monetary Fund's Consultative Group on Exchange Rate Issues; 
     or
       ``(ii) if the guidelines of the International Monetary 
     Fund's Consultative Group on Exchange Rate Issues are not 
     available, be based on generally accepted economic and 
     econometric techniques and methodologies to measure the level 
     of undervaluation;
       ``(B) rely upon data that are publicly available, reliable, 
     and compiled and maintained by the International Monetary 
     Fund or, if the International Monetary Fund cannot provide

[[Page 17035]]

     the data, by other international organizations or by national 
     governments; and
       ``(C) use inflation-adjusted, trade-weighted exchange 
     rates.''.

     SEC. 3. REPORT ON IMPLEMENTATION OF ACT.

       (a) In General.--Not later than 9 months after the date of 
     the enactment of this Act, the Comptroller General of the 
     United States shall submit to Congress a report on the 
     implementation of the amendments made by this Act.
       (b) Matters To Be Included.--The report required by 
     subsection (a) shall include a description of the extent to 
     which United States industries that have been materially 
     injured by reason of imports of subject merchandise produced 
     in foreign countries with fundamentally undervalued 
     currencies have received relief under title VII of the Tariff 
     Act of 1930 (19 U.S.C. 1671 et seq.), as amended by this Act.

  The SPEAKER pro tempore. The gentleman from Michigan (Mr. Levin) and 
the gentleman from Michigan (Mr. Camp) each will control 30 minutes.
  The Chair recognizes the gentleman from Michigan (Mr. Levin).
  Mr. LEVIN. Mr. Speaker, I yield myself 3 minutes.
  Colleagues, this is an important moment for this House and for the 
people of our Nation. There is a real problem--China's persistent 
manipulation of its currency. That requires real action, and under our 
leadership, real action is now being taken in this House.
  China's practices represent, as the Secretary of the Treasury 
indicated in his testimony before us, ``a major distortion in the 
global economy.''
  For our country, it is impacted on our trade deficit with China--in 
2009, $226 billion--and it is impacted on our jobs. Their goods come to 
us, as a result of their manipulation, cheaper, and our goods to them, 
more expensive. There is a 15-35 or 40 percent imbalance, a tilted 
field of competition. The estimates mean 500,000 to 1.5 million jobs. 
This manipulation is one of the causes of the outsourcing of our jobs--
of manufacturing and other good jobs.
  Talk hasn't worked. Less than 2 percent appreciation has occurred 
since just before the last G-20 meeting when the Chinese said that they 
would make their currency more flexible.
  Additional steps are needed, and this bill is just such a step. So, 
after 2 days of hearings before our committee, I worked over the 
weekend with our majority staff to modify, to make sure this bill was 
fully compliant with our international WTO obligations. It is 
compliant.
  China has an economic strategy. For our businesses and workers, it is 
vital that our Nation has an active economic strategy, and this is one 
important piece of that strategy.
  I strongly urge support of this legislation, and I reserve the 
balance of my time.
  Mr. CAMP. I yield myself such time as I may consume.
  Mr. Speaker, let me start by saying it is truly disappointing that 
this is the only trade bill in the past 2 years that has been marked up 
by the Ways and Means Committee. I find it unacceptable that this is 
the sum total of our trade agenda. While this legislation addresses an 
important issue, it will not address many more pressing trade concerns 
with China, and it will not advance the goal of doubling exports in 5 
years.
  To achieve those goals, we must move expeditiously on the pending 
free trade agreements, work harder to open new markets to our exports, 
and address broader economic issues all over the world and with China.

                              {time}  1610

  We have held four separate hearings on China this year alone. At 
each, we heard from witnesses, including Treasury Secretary Geithner, 
who stressed that China's currency policy is only one element in our 
highly complicated trading relationship.
  It's not that China's currency problem is not a problem or priority; 
it's just that there are far larger issues with regard to China and our 
trade imbalance. Issues like intellectual property rights, indigenous 
innovation, export restraints on rare earth minerals and other items, 
and a host of nontariff barriers are wreaking havoc on American 
employers, their workers, and our economy.
  Despite my disappointment about the lack of a broader trade agenda 
and the lack of action on these other concerns with respect to China, 
it would be an enormous mistake to give up completely on addressing 
China's currency policy. We all agree that China's currency is 
fundamentally misaligned and that China must take prompt action to 
allow market forces to determine the value of its currency.
  At the same time, it is important that any legislation be consistent 
with our international obligation and be effective. Any legislation 
that could potentially expose the United States to WTO-sanctioned 
retaliation would undoubtedly do more harm than good and would 
undermine our efforts to get China to comply with its own obligations.
  At our hearings over the past few weeks, a number of witnesses and 
Republican Members raised serious concerns about the WTO consistency of 
the original version of H.R. 2378. As a result of these concerns, 
Chairman Levin completely rewrote the bill. The version before us today 
has little in common with the original, which, on its face, violated 
our WTO obligation. It addresses many of the criticisms raised by 
witnesses and by Republican Members, and I appreciate that the chairman 
has taken these concerns into account.
  Unlike the original version, this bill does not mandate that the 
Commerce Department automatically adjust antidumping and countervailing 
duty calculations to account for China's currency policy. This version 
allows Commerce to consider many factors in determining whether or not 
China's currency policy satisfies the technical definition of an export 
subsidy, as it does today, and does not prejudge an outcome.
  While I remain deeply concerned about using countervailing duty law 
to address China's currency policy, I believe the bill before us today 
does not, on its face, violate our WTO obligations.
  I will vote for this bill because it sends a clear signal to China 
that Congress' patience is running out but does not give China an 
excuse to retaliate against U.S. companies and their workers. While we 
cannot pass legislation that likely violates our WTO commitments and 
would result in WTO-sanctioned retaliation, we cannot, at the same 
time, allow ourselves to be afraid of China's reaction to a WTO-
consistent measure.
  If China retaliates against this bill at this stage, I fully expect 
that USTR, and the administration as a whole, will act swiftly and 
aggressively to pursue every option available, including through action 
at the WTO. China's posturing and bad behavior cannot dictate our trade 
policy.
  This legislation also sends an important signal to the 
administration: It is time to produce results. The administration must 
step up its bilateral and multilateral efforts and set a clear timeline 
for action. The administration should work to ensure that the issue of 
global imbalances, which naturally includes China's currency policy, is 
prominently on the agenda at the November G20 meetings in Seoul. We 
should also reengage in bilateral investment treaty negotiations.
  As I noted at our markup, the fact that the administration has not 
moved aggressively on a multilateral basis has forced us to this point. 
The legislation we are considering today is better than the original 
but still won't resolve our trade imbalances with China.
  Mr. Speaker, I yield the balance of my time to the gentleman from 
Texas (Mr. Brady), and I ask unanimous consent that he be allowed to 
control that time.
  The SPEAKER pro tempore (Mr. Capuano). Is there objection to the 
request of the gentleman from Texas?
  There was no objection.
  Mr. LEVIN. I yield myself 15 seconds.
  That statement really rewrites the history of this legislation. I 
suggest to everybody, go back and look at the opening statement of the 
ranking member. Also, we have urged support of the green 301 petition. 
Only three Republicans supported it. I regret the partisan inflection 
here. I won't engage in it. I hope we get bipartisan support.
  I now yield 1\1/2\ minutes to the gentleman from Washington (Mr. 
McDermott), a gentleman who is so actively engaged on these issues.

[[Page 17036]]


  Mr. McDERMOTT. Mr. Speaker, there is an old Chinese proverb that 
says, ``A journey of a thousand miles begins with a single step,'' and 
I rise today in support of this legislation which is before us to take 
the first step toward addressing the egregious imbalance between 
China's currency and our own.
  For too long, the Chinese have not been playing fairly in the 
international trade arena, and this Congress has to send a clear 
message that China must become a responsible player in a multilateral 
trade. The Chinese export-driven strategy is smart, but subsidizing by 
suppressing their currency is an unfair way to do it.
  This legislation is a good step, but it's not my preferred step. I 
would prefer the United States, together with our partners, bring a 
multilateral WTO case against China on the currency issue. Absent that, 
this commonsense legislation helps the Commerce Department do a fair 
job of making the multilateral mechanisms more available to U.S. 
businesses.
  This legislation sends a clear signal that the American people 
respect international agreements and expect fairness. After years of an 
unlevel playing field, it is time to act, and this legislation is the 
right kind of measured first step we must take now.
  I urge the passage of this bill.
  Mr. BRADY of Texas. Mr. Speaker, I yield myself such time as I may 
consume.
  I appreciate the effort, Mr. Speaker, by Chairman Levin to address 
the concerns of Ranking Member Camp and other Republican Members that 
were raised at our various hearings. And while the revised version 
addresses the WTO consistency issue, my view is that, on balance, the 
promises that this bill makes to compel China to appreciate its 
currency to reduce the trade deficit and to create U.S. jobs won't be 
realized, and, therefore, I oppose this bill.
  Rather than focus on China's currency policy alone, a priority must 
be creating American jobs by promoting U.S. exports, and this bill 
doesn't do enough to provide new market access for American businesses, 
farmers, and workers. If we are to meet the President's goal of 
doubling exports, we must focus our energy on tearing down real 
substantive barriers to U.S. access to China's consumers. We must 
require China to better U.S. intellectual property rights and end its 
directed lending, cease its innovative policy, and move other 
artificial barriers to U.S. exports. Such an effort would benefit 
thousands more American workers than the focus on China currency alone.
  I am concerned that moving on this bill makes it more difficult for 
us to resolve these other issues, and I think we ought to be careful to 
avoid doing more harm than good in tearing down these barriers.
  Breaking down barriers to U.S. exports is difficult work and requires 
concerted effort by Congress and the administration. To begin with, 
rather than merely paying lip service to new and pending trade 
agreements, we have to find a way to move these agreements forward.
  Currently, there is no clear end date for concluding the Trans-
Pacific partnership negotiations, no plan from the administration on 
how it intends to resolve issues related to the U.S.-Colombian, -Panama 
trade agreements, and just limited discussion on the U.S.-South Korea 
trade agreement.
  The administration must also return to the negotiating table and 
complete bilateral investment treaty negotiations with China. Entering 
into a bit with China could help on many of these issues and is 
necessary to ensure that Americans have the same rights in China as our 
other trading partners.
  Mr. Speaker, while this bill is improved from its original version, 
it is no substitute for a comprehensive China policy that the 
administration and the majority have failed to give us. I urge, and 
strongly urge, a ``no'' vote on this legislation.
  I reserve the balance of my time.
  Mr. LEVIN. Mr. Speaker, it is my privilege to yield 1\1/2\ minutes to 
the gentleman from Massachusetts (Mr. Neal), another active member of 
our committee.
  Mr. NEAL. I thank the gentleman.
  Mr. Speaker, this legislation is about supporting American 
manufacturing jobs, plain and simple. The Peterson Institute suggests 
that this would increase American exports by $100 to $150 billion a 
year. The Ways and Means Committee held three hearings on this issue 
which confirmed that China is deliberately intervening in currency 
markets to continue its unfair advantage over American manufacturers 
and workers.
  The committee reported out a bipartisan bill with important changes 
to make it fully consistent with WTO rules. In short, this bill allows 
currency manipulation to be considered in trade remedy cases. It is 
consistent with a free market solution to enabling fair trade.

                              {time}  1620

  Lawrence Lindsey, who was President George W. Bush's own economic 
adviser, said, ``The Chinese clearly undervalue their exchange rate. It 
is the Chinese Government, not markets and not Americans, who are 
shaping how much is bought and from whom.'' This bill is not a solution 
to all the challenges relating to U.S.-China trade, but it is a 
significant and much-needed trade remedy tool to help American business 
and workers compete.
  New initiatives such as this are needed in response to negotiations 
that time and again have been stymied in both Democratic and Republican 
administrations. This is a good step in the right direction.
  Mr. BRADY of Texas. Mr. Speaker, I would like to yield 2 minutes to 
the gentleman from Louisiana (Mr. Boustany), who has played a key role 
in opening trade barriers for U.S. products.
  Mr. BOUSTANY. Mr. Speaker, let me just be clear to start. China's 
currency policy is wrong, and it is harmful for the U.S. and for China. 
But it is one of many problems, a whole host of problems that we have 
heard about: indigenous innovation, IPR protections, licensing and 
standards, all of these nontariff barriers that we have heard so much 
about.
  So if we're going to look at how we approach this, we have to, A, be 
consistent with our WTO and other international obligations; and, B, 
whatever we do has to be effective. Those are the parameters that 
Secretary Geithner himself laid out. I have questions as to whether 
this approach will meet either of those. Yes, the bill on its face is 
WTO compliant. But if we are to implement this connection between 
countervailing duties and currency valuation, I believe that will be 
subject to challenge. And I regret that we have not heard from the 
Department of Commerce, U.S. Trade Rep, Treasury on their read on this. 
In fact, the administration's not even made a statement with regard to 
this bill as to the effectiveness or as to whether or not it is 
consistent with our international obligations.
  But to a broader point: If we're going to have leverage, we need 
trade policy, and we do not have a trade policy. Ranking Member Camp 
has already made the statement that we have had nothing beyond this in 
the discussions about what are we going to do to really have leverage 
and to move forward with a trade policy. I have heard from the 
administration that we do need to move the South Korean free trade 
agreement. Clearly we need to do that. We need a bilateral investment 
treaty with China and with other countries. We have had no movement on 
that.
  Finally, I just think it's unacceptable that this administration did 
not send a representative to the ASEAN conference in Asia recently. We 
are not even showing up on the playing field. How can the U.S. be truly 
credible if we're not actively engaged in a trade policy that makes 
sense? U.S. credibility is on the line. We have to prove that we keep 
our commitments.
  Passing this bill is going to do nothing to solve our trade imbalance 
with China. It is not the kind of tool, I believe, that we need. We 
need to move forward in multilateral negotiations in a vigorous way and 
enlist other allies

[[Page 17037]]

who also have the same concerns that we do.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. BRADY of Texas. I yield the gentleman 1 additional minute.
  Mr. BOUSTANY. We are starting to see the makings of a currency war 
out there, where others are devaluing their currencies at our expense. 
That's why this needs to be addressed at a multilateral level. I feel 
we can do this in a responsible way. So because of these concerns, I am 
going to oppose this bill.
  But I do want to thank you, Chairman Levin, for working back from 
what was originally a very bad bill to something that is improved. I 
think we can do better. I can only wish that we were able to work 
further on this to where we could have a truly strong bipartisan 
agreement to approaching our very complicated and important commercial 
and economic relationship with China.
  Mr. LEVIN. I now yield 1\1/2\ minutes to the gentleman from 
California (Mr. Becerra), another very distinguished member of our 
committee.
  Mr. BECERRA. Mr. Speaker, we can talk or we can act. International 
trade is a high-stakes, cutthroat business. And every time we simply 
talk, the other side acts. And every time they act, an American loses a 
job. It's time for us to do what American workers for the last several 
years have been asking us to do, and that is to take action against 
what we know are unfair trade practices going on which cause us not 
only to lose jobs but to lose American businesses that can't continue 
to sustain themselves here and move abroad.
  We know that the Chinese have been playing with their currency. 
Everyone knows that the Chinese have been playing with their currency. 
The Chinese know it. You know what? They are going to do everything 
they can for their workers. They are going to do everything they can 
for their businesses. You can't beat them for that. But please, let's 
not let them beat us at what we can do well. And that's why it's time 
to do this legislation.
  Some credible estimates say that if we were to act on China's 
currency manipulation, we could return 1 million American jobs to this 
country, that we could reduce our $250 billion trade deficit by $100 
billion with China. It is time for us to take action because the 
Chinese are certainly taking action. We can either take bold steps, as 
the American public has asked us, or we can take baby steps.
  It's time for us to recognize that Americans are doing the best they 
can to produce American products so we can sell them, not just here but 
abroad. But if we allow someone to manipulate their currency by 25 to 
40 percent, making their products look cheap here and making our 
products look expensive abroad, then guess what? Shame on us, because 
the American public is working very hard. It's time to pass this 
legislation. It's time to take bold steps, not to take baby steps.
  Mr. BRADY of Texas. At this time I yield 3 minutes to the gentleman 
from Pennsylvania (Mr. Tim Murphy).
  Mr. TIM MURPHY of Pennsylvania. I thank the gentleman for yielding. 
And I thank my colleague Tim Ryan, who is the Democrat lead in this, 
and I am the Republican lead on this. We know this is an important 
bill.
  You know, the perfect is the enemy of the necessary. We are arguing 
about trade policies, what the WTO might think, what China might think, 
what negotiations might happen while the American people are out there 
saying, What are you doing about our jobs? China has been involved in a 
number of things, such as steel dumping and dumping products here, and 
setting these unfair currency practices which lead to up to a 40 
percent discount. And while American companies see their factories 
close and American workers get their pink slips, they wonder if 
Washington gets it. Well, we do, and today is our chance to make good 
on that.
  There was a time when ``Made in the USA'' was a standard for the 
world. It was a matter of fact that you owned the best. We earned that 
esteem. And now we are about to lose our position as a global leader 
when next year China overtakes us as the biggest manufacturer in the 
world. You know, the trouble is that China has never really accepted 
the basic rules of fair trade, and that's what we're standing for in 
this bill, fair trade.
  Former Bush administration Commerce Secretary Carlos Gutierrez said 
that China's currency valuation does not yet adequately respond to 
market forces. Treasury Secretary Tim Geithner said similar things, 
believing that China is manipulating its currency. President Obama said 
the same thing and said, We need a two-way street. But unfortunately, 
when President Obama goes to talk to the Chinese, they push him back in 
a corner because we've got $800 billion in debt to them, and they 
continue to stall and stall.
  Now I don't care who is in the White House, Republican, Democrat, 
whoever. But I don't want another country saying to my President that 
we are not going to talk to you about these things and somehow make it 
sound like it is the United States' fault. This is an issue that 
Republicans and Democrats alike are backing, and action delayed is 
action denied. Only when our government starts pursuing policies that 
cultivate rather than stifle American manufacturing and holds China and 
other trading partners fully accountable for cheating on trade will we 
begin to revitalize that manufacturing sector which we have lost ground 
on.
  If we unleash our factories and workers from the constraints of an 
overly burdensome taxation and regulatory requirements, giving them the 
tools they need to ensure that all countries play fair and by the 
rules, the American manufacturer will win in the global marketplace 
every time. With its dedicated workforce and demonstrated ingenuity, 
American manufacturing has a chance not just to repair our economy, not 
just lead us out of debt and deficit, but to create hundreds of 
thousands of new, well-paying, high-quality jobs.
  We in Congress must do everything we can to support American 
manufacturing in this goal and not stand in their way and not quietly 
wring our hands and worry. We can start by passing the Currency Reform 
for Fair Trade Act tomorrow, because in matters of economic and job 
diplomacy, we can speak softly, but it sure is nice to carry a big 
stick.

                              {time}  1630

  Mr. LEVIN. I yield 1\1/2\ minutes to the distinguished gentleman from 
California (Mr. Thompson), another member of our committee.
  Mr. THOMPSON of California. Mr. Speaker and Members, I rise in 
support of this legislation in part because it will help level the 
playing field for America's renewable energy manufacturers. China has 
time and again turned to unfair trade practice to promote their 
manufacturers, and it is time we put a stop to that.
  For example, solar panel technology was developed in America. Yet in 
2008, China became the largest producer of solar panels in the world. 
Right now it is cheaper to purchase Chinese-made solar panels here in 
the United States because of China's manipulated currency. This is 
unacceptable.
  In my district our solar manufacturers compete on a global scale, but 
they are at a huge disadvantage because of China's current policy.
  The solar and renewable energy sector creates tens of thousands of 
jobs, generating more jobs per megawatt of capacity than any other 
energy technology.
  Further, petroleum currently accounts for half of our total trade 
deficit. By investing in and supporting our renewable energy 
manufacturers, we can help close our trade deficit and stop giving 
monies to countries who, in about 40 percent of the cases, are not our 
friends.
  It is time to support American jobs, American renewable energy 
manufacturers, and, again, bring those jobs home. I urge my colleagues 
to vote in favor of H.R. 2378.
  Mr. BRADY of Texas. Mr. Speaker, I reserve the balance of my time.
  Mr. LEVIN. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from 
Oregon (Mr. Blumenauer), another very, very

[[Page 17038]]

distinguished member of our Ways and Means Committee.
  Mr. BLUMENAUER. I appreciate the gentleman's courtesy, and I 
appreciate his leadership in working to have a piece of legislation 
here that can be brought forward in a bipartisan fashion, listening to 
the concerns that were expressed repeatedly to our committee.
  I come from an area of the country that is intensely trade dependent. 
Some of our iconic brands, Nike, Harry and David, Columbia Sportswear, 
would not exist without strong international partnerships.
  Oregon's largest private employer, Intel, is a product of the 
international market for high-tech products. This makes a difference to 
people in my community. When we find, as the International Monetary 
Fund has found, the currency of the Chinese is significantly 
undervalued, it makes the United States exports more expensive in China 
and Chinese imports cheap in the United States and third country 
markets.
  My support for trade is contingent upon our making sure that we are 
using the tools in an aggressive fashion. We should be using all of the 
tools in our national trade tool box, the WTO, our bilateral 
agreements, shared agreements, forums that the United States and China 
are party to, U.S. domestic law, all of these to make sure that we are 
ensuring this level playing field that people are talking about here.
  If, as has been estimated, China's currency policy could reduce our 
gross domestic product by over a percentage point when we are trying 
desperately to jump-start the economy, this is precisely the policy we 
should do moving forward.
  Mr. Speaker, I appreciate having an opportunity to vote on this 
today. I think this sends a strong signal that we want our 
international trade regime to work, that we are not just mindlessly 
entering into these agreements, but we are going to make sure that they 
are enforced. This an important step.
  Mr. BRADY of Texas. Mr. Speaker, I reserve the balance of my time.
  Mr. LEVIN. I yield 1\1/2\ minutes to the gentlewoman from California 
(Ms. Linda T. Sanchez), another distinguished member of our committee.
  Ms. LINDA T. SANCHEZ of California. I thank Chairman Levin and 
Ranking Member Camp and Representatives Ryan and Murphy for their 
leadership on this important bill, which I strongly support.
  Mr. Speaker, this bill is about protecting one thing, the American 
economy. We must give American businesses a fair opportunity to sell 
their goods abroad and challenge underpriced Chinese imports.
  This bill does that. It gives us stronger tools to address currency 
manipulation and protect American businesses. We can compete and win 
against any nation in the world if we're all playing by the same rules. 
China isn't.
  Opponents say that this bill will start a trade war. I say we are 
already in a trade war and China is using cannons, and we are standing 
here shooting BB pellets.
  Some say ``Let's wait.'' I say we have waited long enough.
  When China joined the World Trade Organization in 2001, promises were 
made. We have held up our end of the bargain. China has not.
  It has manipulated its currency, condoned intellectual property 
theft, and looked the other way while its businesses advertise schemes 
to avoid paying us the duties that we are owed.
  For nearly 10 years, the prior administration failed to address the 
currency problem. Meanwhile, unfair Chinese imports caused small 
businesses across the country to close their doors, including one in my 
own district, Michels Furniture Store in Lynwood, California.
  For nearly 10 years, our go-slow approach allowed China's job-killing 
mercantilist currency policy to flourish. The time for waiting is over.
  Given the unemployment rate in this country and the economic pain 
that families feel in my district, shame on us if we fail to support 
this bill.
  Mr. BRADY of Texas. Mr. Speaker, I yield 2 minutes to the 
distinguished gentleman from Michigan (Mr. Rogers).
  Mr. ROGERS of Michigan. Mr. Speaker, today's debate has been a decade 
in the making. While this Congress and administrations of both parties 
fiddled, American manufacturing burned.
  Michigan workers make an average of $12,000 a year less than they did 
just a decade ago. Our trade deficit has skyrocketed, with 
manufacturing goods deficit up 3,000 percent. It is no accident and it 
is no coincidence. Chinese currency manipulation is the driving force 
behind this destruction.
  Chinese currency is at least 25 percent below where it should be, 
making their goods cheap and destroying our manufacturing base.
  In Michigan alone, Chinese currency manipulation has destroyed some 
68,000 jobs in Michigan. In my district, some 4,500 jobs are gone 
because this Congress and both the Bush and the Obama administrations 
have refused to do anything but talk on Chinese currency manipulation.
  Today's vote is a tough, first step toward fair trade with China. 
Fair trade and the livelihood of Michigan workers finally lets them 
compete on a level playing field with the start and the passage of this 
bill.
  Mr. LEVIN. Mr. Speaker, I yield 1 minute to the gentlewoman from New 
York (Ms. Slaughter), the very distinguished chair of the Rules 
Committee.
  Ms. SLAUGHTER. I am going to forego the niceties of congressional 
conversation this afternoon because I have only got a minute to tell 
you what I really think. There are times when the timidity of the 
Congress of the United States absolutely overwhelms me into anger.
  We have sat by in this country since the Second World War was over, 
watching American jobs go to rebuild the economies of Germany, Japan 
and Korea, one after the other. We have gone way too far. We have 
jeopardized our own well-being.
  If we believe that we can be a superpower, the superpower, and not 
manufacture anything, I think we are sorely mistaken. When we are 
dependent on other countries for all the goods that we need, not only 
domestically but militarily, I think we are in a sorry shape.
  Now, our trade policies that we have had have been awful, and it is 
bipartisanly awful. But I will tell you right now that as far as I am 
concerned, and I hope a lot of my colleagues agree with me, until we 
get reciprocity, until every trade agreement that we pass says that 
that country has to open its borders completely to trade from the 
United States of America, we don't have anything.
  We are way late on this. We are 20 years too late to be doing this. 
We are right at the brink right now of financial disaster in this 
country. Those jobs that we have lost are not coming back. We have got 
to be rebuilding a new economy. We can't do it if China is going to do 
it all first and get there and dump on us and undercut.
  So not only pass this bill today, but demand stronger policies in 
this country to save us for our next generation.
  Mr. BRADY of Texas. Mr. Speaker, I yield 3 minutes to the gentleman 
from Texas (Mr. Hensarling), who is focused on jobs, spending, and 
getting this economy back on track.
  Mr. HENSARLING. I thank the gentleman for yielding.
  Mr. Speaker, as I look at the available evidence, I believe that the 
preponderance of the evidence does show that China is manipulating its 
currency. So I don't question the problem; I question the remedy. And I 
question whether or not punishing American consumers is the right 
remedy to apply to this situation. I believe that, ultimately, if this 
legislation is enacted, that is what will happen.
  We know already--we don't know what the estimates are, 5 to maybe 30 
percent--that the renminbi may be overvalued. And China should let 
their currency float.

                              {time}  1640

  It is wrong what they're doing. They are hurting their own people by 
doing what they're doing.
  But in addition, Mr. Speaker, one thing I do know they are doing is 
they

[[Page 17039]]

are subsidizing goods to the American people at a time when many family 
budgets are being strained. The available evidence shows that if this 
was passed, if actually the renminbi was revalued, that prices for many 
of these Chinese goods may go up 10 percent. A pair of shoes that a 
mother needs for her child to go to school, maybe it is a pair of 
glasses, maybe it is toys at Christmas, all become more expensive.
  So to some extent there is a question: Should we pass a law, pick 
winners and losers between manufacturers and consumers? Is that 
something we should be doing? I am not sure that it is.
  In addition, Mr. Speaker, we all know our history. We know that 
presently we are still mired. Whether or not some Bureau economist 
tells us we are out of a recession, we know that people in our 
districts continue to suffer through probably the greatest economic 
crisis we have seen since the Great Depression. One of the most 
exacerbating factors happened to be the Smoot-Hawley tariff. I fear a 
trade war.
  Now, some say we are already having a trade war. Well, by historic 
standards, we are probably having a trade skirmish. But we know that 
already the administration last year elected to impose tariffs on 
Chinese tires. And, guess what? They imposed tariffs on our poultry, 
one of the few areas where we actually had a favorable balance of 
trade, and so import tariffs up to 105 percent on U.S. exports of 
poultry. So any type of jobs that may be gained in manufacturing just 
might be lost in agriculture or some other area.
  I am not convinced that the proponents of this bill have made the 
case that, on net, this would even create more jobs in America. It 
certainly would create more in one sector than another. But, again, 
precipitating a trade war at a time when we are in tough economic 
times, making it more difficult for consumers to afford the items they 
need to provide for their families, I think is unwise public policy. So 
I would urge defeat of this legislation.
  Mr. LEVIN. I yield myself 10 seconds.
  To the gentleman who just spoke, without a job, one can't buy goods 
at any price. This bill is about jobs.
  I now yield 1 minute to the gentleman from Ohio (Mr. Boccieri).
  Mr. BOCCIERI. Mr. Speaker, the American people are watching. While we 
may wear different jerseys, we are supposed to be playing for America, 
and this vote today is about whether we are going to stand up and fight 
for Americans.
  Just last week, the Chinese Government ordered all our domestic 
manufacturers who are building cars in China to turn over all their 
battery technology. Ohio, who has 25 percent of her economy based on 
the automotive industry, cannot afford to stand on the sidelines as 
countries like China refuse to play by the rules.
  Critics believe that this legislation could start a trade war. 
America is already in a trade war, and the question is whether the U.S. 
Government is going to show up for the fight. And forcing the agreed-
upon trade rules is not protectionist. In fact, the Chinese practices 
like currency manipulation and illegal subsidies are protectionist.
  In 2005 Ohio lost more than 183,000 manufacturing jobs because of bad 
trade deals. I say that you can't afford to buy tennis shoes if you 
don't have a job. And that is what this bill is about.
  In the past 2 years alone, workers from nine local companies in my 
district received trade adjustment assistance as a result of bad trade 
deals.
  We respect the Chinese culture, their people, and their workers, but 
we are playing for America. We have got to build it; we have got to 
assemble it, and we have got to manufacture it here in our country. We 
can't be the movers of wealth; we have to be the producers of wealth, 
and it starts with this vote today.
  Mr. BRADY of Texas. Mr. Speaker, I yield 2 minutes to the 
distinguished gentleman from California (Mr. Rohrabacher).
  Mr. ROHRABACHER. I rise in support of the resolution.
  I think that the Chinese clique that dominates that country has not 
only mistreated its own people, because they are the worst kind of 
tyrants one can imagine, but they have also been treating the American 
people in a malicious way as well.
  The fact is that we have adopted policies that are very positive 
toward the Chinese and the Chinese Government that have been to the 
detriment of the people of the United States. We have permitted a one-
way free trade policy. We have permitted a lack of access to their 
markets while they have total access to our markets. We have put up 
with the wholesale theft of American technology. And, yes, we have put 
up with the fact that they have manipulated their currency in a way 
that ensures the flow of wealth into their society as opposed to an 
equal relationship that would benefit both countries.
  What we have to do is decide are we going to permit the clique that 
runs China to continue to do great damage to the people of the United 
States of America, or are we going to provide some sort of action that 
we can take if they are manipulating the currency in a way that shifts 
the wealth from our society and the jobs from our society and 
transports them to China?
  And let me note this. In a dictatorship like China, we are not 
talking about wealth that is raising the standard of living of their 
people. We are talking about wealth that, in the end, is manipulated 
and controlled by a clique of gangsters who are the worst human rights 
abusers in the world. And what are they doing with this profit that 
they make from this unfair trade relationship and manipulation of 
currency? They are building a military, a modern military based on 
technology that they have stolen from us and an unfair trade 
relationship that we have acquiesced to over the years.
  It is about time we have legislation that will at least prevent them 
from manipulating the currency and give us an alternative action that 
we can take to try to prevent the manipulation of currency on the part 
of the Chinese. So I rise in support of this resolution.
  Mr. LEVIN. Mr. Speaker, I now yield 1\1/2\ minutes to the gentleman 
from North Carolina (Mr. Etheridge), a member of our Ways and Means 
Committee.
  Mr. ETHERIDGE. I thank the gentleman for yielding.
  Mr. Speaker, I rise in support of fair trade and making sure other 
countries play by the rules and in support of H.R. 2378, the Currency 
Reform for Fair Trade Act.
  Just this week, China announced tariffs as high as 105.4 percent on 
U.S. poultry because of a trumped-up dumping charge. But the real trade 
distortion in the U.S.-China relationship is currency manipulation--a 
huge subsidy to their manufacturers and a hidden tariff on U.S. goods. 
China's currency manipulation allows them to sell the world cheaper 
goods, costing us jobs and economic growth.
  This bill would give our trade negotiators the tools they need to 
investigate this manipulation and take action, if appropriate. It would 
restore balance to our trade relationship.
  North Carolina's producers are second to none, and given a level 
playing field, our workers can compete with anybody. But how are they 
supposed to compete with a country that manipulates its currency? I say 
it is not fair.
  Mr. Speaker, we should pass this bill and send a clear message to 
China that it is time to play by the rules. I call on my colleagues to 
stand up for our exporters, our producers, and the people of America, 
and join me in supporting American industry and H.R. 2378.
  Earlier this week we saw another example of how China refuses to play 
by the rules for international trade. On Monday, China announced that 
it would impose steep tariffs on our poultry producers. Because of this 
decision, some U.S. producers will face tariffs as high as 105.4 
percent. China claims that this is in response to ``dumping'' in its 
market, but we all know that this is actually retaliation for U.S. 
tariffs on tires. Once again, the Chinese government has shown that it 
will take extraordinary--and illegal--steps to make sure they enjoy 
unfair advantages in their trade relationship with the United States.
  Nowhere is this unjustifiable trade distortion more evident than in 
China's intervention in the value of its currency. This currency 
manipulation amounts to a subsidy: It allows China

[[Page 17040]]

to sell goods at a cheaper price here in this country, while 
simultaneously making our exports more expensive. As a consequence, the 
United States now has a large trade deficit with China; a trade deficit 
that is now slowing the economic recovery. For the sake of our economy 
and our country, it is vital that we address this issue.
  H.R. 2378 gives the U.S. Commerce Department the tools to examine 
this matter. It does not force any conclusion be reached, but rather 
all the facts be taken into account when making a decision as to 
whether China's currency manipulation constitutes an illegal subsidy. 
If Commerce finds that China is violating trade law, this bill makes 
sure the United States takes action to protect our industry, our 
exporters and our economy. Nothing could be more important.
  Trade is good for America, but only if it is fair. My state of North 
Carolina produces everything from pharmaceuticals, industrial goods 
such as jet engine parts, to tobacco and textiles. Our farms produce 
top quality poultry and pork. North Carolina's products are second to 
none, and, given a level playing field, our workers can compete with 
anybody. But how are they supposed to compete with a country that 
manipulates its currency? That's not fair.
  I know that some of my friends on the other side of the aisle will 
object to this bill. Many are fearful that China will react to this 
legislation by imposing retaliatory tariffs that further hurt our 
exporters. But China already arbitrarily slaps tariffs on our goods 
regardless of what we do, as we saw earlier this week. This 
legislation, on the other hand, complies with WTO laws and precedents, 
and any retaliation by China because of this bill would be unlawful.
  As our trade deficit threatens to sap our economic recovery, we 
should pass this bill and send a clear message to China that it is time 
to play by the rules. Some economists estimate that a significant 
appreciation of the Chinese currency will create 600,000 to 1,200,000 
jobs. When many people throughout the country are struggling to find 
employment, it is the right time to pass this bill.
  Mr. Speaker, this bill will ensure our trading partners play by the 
rules. I call on my colleagues to stand up for our exporters and 
producers, and join me in supporting American industry and H.R. 2378.
  Mr. LEVIN. Mr. Speaker, I now yield 1 minute to the distinguished 
gentleman from Indiana (Mr. Visclosky).
  Mr. VISCLOSKY. I thank the gentleman for yielding, and I want to 
thank Chairman Levin and Mr. Camp for bringing this bill to the floor. 
I want to thank Mr. Ryan and Mr. Murphy for their very, very good work 
on this bill.
  This is a jobs issue, and there should be no doubt in anyone's mind 
that that is what we are talking about today.
  In 1990, in the State of Indiana, 226,000 more people worked in 
manufacturing than in government. This year, 7,000 more people work in 
manufacturing than government, because 165,000 manufacturing employees 
lost their jobs. That is 165,000 families in the State of Indiana alone 
that lost good-paying manufacturing jobs. One of the causes is the 
currency manipulation by the Chinese Government.

                              {time}  1650

  We were told by the last administration if we just dialogue with the 
Chinese, we would solve this problem. We are told by the current 
administration, if we just dialogue with the Chinese, we will solve 
this problem. We were told by the Chinese on May 18, 2007, if we just 
dialogue on this problem, we will solve it.
  The solution is on the floor today. I would ask my colleagues to 
strongly support passage of H.R. 2378, and give this administration the 
intestinal fortitude to stop dialoguing with the Chinese and to take 
serious action on jobs.
  I strongly support H.R. 2378, the Currency Reform for Fair Trade Act. 
I am proud to have the opportunity to speak in support of this bill 
that takes an important step in leveling the playing field for United 
States manufacturers.
  At the outset of my remarks, I would like to applaud the leadership 
of the Ways and Means Committee, especially Chairman Levin and Ranking 
Member Camp for bringing this legislation to the Floor. I would also 
like to commend Representative Tim Ryan, the sponsor of the 
legislation, and Representative Tim Murphy, the Vice Chairman of the 
Congressional Steel Caucus, for their tireless efforts advocating for 
this much-needed bill.
  As the Chairman of the Congressional Steel Caucus, I would like to 
focus my remarks on the steel industry. In the world of steel, China is 
of paramount concern. In 2009, China produced 47 percent of the world's 
total output of steel, which is 567.8 million tons. This is more than 
double the amount that China produced in 2003. By comparison, last year 
the United States produced approximately 60 million tons of steel, 
compared with approximately 100 million tons in 2003. While multiple 
factors contributed to China's unprecedented increase in production, 
paramount among them is China's currency manipulation. The undervalued 
Yuan is perpetuating a destructive trade imbalance and costing American 
jobs.
  Congress must ensure that the U.S. remains a competitive place for 
manufacturing investment. This requires the U.S. to reverse the 
unsustainable imbalance that has allowed other nations to adopt 
policies supporting excessive exports of manufactured goods to the 
U.S., while we export debt and manufacturing jobs. And we must take 
action now, as evidenced by a recent report by the Economic Policy 
Institute, which estimates that the rising trade deficit with China 
will cost the U.S. over one-half of a million jobs in 2010.
  I believe that the passage of H.R. 2378 represents a turning point in 
the battle to combat unfair Chinese trading practices. And I hope that 
its passage finally gives the Administration the intestinal fortitude 
to stop ``dialoguing'' with Beijing and start enforcing our trade laws.
  Mr. Speaker, I again want to thank Representatives Ryan and Murphy 
and the Committee for bringing this important legislation to the Floor, 
and I urge my colleagues to support the measure.
  Mr. BRADY of Texas. Mr. Speaker, I reserve the balance of my time.
  Mr. LEVIN. Mr. Speaker, I yield 1 minute to the gentleman from Oregon 
(Mr. DeFazio).
  Mr. DeFAZIO. Mr. Speaker, I was a bit surprised to hear the gentleman 
from Texas and a few others on the Republican side find an excuse to 
oppose this legislation, but, then again, they always find an excuse to 
side with their international corporate benefactors.
  He feigned, ``Oh, my god, the American people won't be able to afford 
shoes for their kids next fall because we won't have those cheap 
Chinese imports shutting down American factories.''
  Now, what the Americans need are jobs. We don't need jobs in China; 
we need them here. And with an unfairly priced currency, we are losing 
more and more manufacturing.
  When the Republicans controlled everything from 1994 to 2006, or the 
Congress and the presidency for a good part of that time, our trade 
deficit with China went up 806 percent, and they did nothing. But they 
can find little problems here and there with this legislation.
  They are worried about a trade war. We are at war. We are having a 
trade war with China. They are supporting capitulation, and we are 
finally starting to fight back from this side of the aisle.
  No, no excuses. Plain and simple: Are you with the American people 
and fair trade, or are you with the Chinese and the big international 
corporations and their excuse for free trade, which is manipulated 
currencies, trade barriers, and taking our jobs away from our workers. 
Plain and similar: Where do you stand?
  Mr. BRADY of Texas. Mr. Speaker, I yield myself 15 seconds.
  I would make the point that the Chinese currency appreciated 20 
percent during President Bush's administration. It had no impact on the 
trade deficit. It has only appreciated 5 percent under the current 
administration, with no impact on the trade deficit.
  I reserve my time.
  Mr. LEVIN. Mr. Speaker, it is now my special pleasure to yield 2 
minutes to the gentleman who is an original cosponsor of this important 
legislation, the gentleman from Ohio (Mr. Ryan).
  Mr. RYAN of Ohio. Let me thank the chairman for his good work. Let me 
thank Speaker Pelosi for her giving us this opportunity to bring this 
bill to the floor, and Leader Hoyer, who was very instrumental in our 
Make It In America project, of which this is a major component.
  In the late 1970s, the top 1 percent of the people in our country 
controlled about 9 percent of real income, and in 2007, the top 1 
percent controlled about 23.5 percent of real income. If you go back 
and see the amount of time families worked in the late 1970s compared

[[Page 17041]]

to today, the average family works about 12 weeks more a year than they 
did back then.
  So the average family is making less, working longer, sometimes two 
or three jobs just to make ends meet, and part of the problem has been 
this erosion of the manufacturing base. And what we are talking about 
with currency manipulation is the Chinese Government artificially 
subsidizing every single product that lands on our shores here in the 
United States. So, yes, it may be cheap, because it is being subsidized 
by their government, but it is putting American workers and American 
manufacturers out of business.
  If we are going to resuscitate this economy, we have got to focus as 
a nation on making things in America again. And if you look at the list 
of the supporters of this bill, tool and die manufacturers, corn 
growers, the supply chain for all of our manufacturing that happens in 
the United States, they are all supporting this bill, along with all of 
the workers groups, all of the unions.
  This is something we can all agree on. It will stimulate our economy 
and not add one dime to the deficit, and that is what this is about.
  For every manufacturing job, you get five or six or seven spinoff 
jobs. Manufacturing jobs pay more. There are more patents, more 
innovation, more research and development.
  This is about taking our country back. You wonder why people are 
anxious out there? They have been working longer, working more, and 
getting paid less. I would be anxious too. I would be upset. That is 
what we are feeling in the country.
  I think this bill is an opportunity for us to reinvest back in the 
United States, put people back to work, and have good, middle class 
jobs here in the United States.
  Mr. BRADY of Texas. I reserve the balance of my time.
  Mr. LEVIN. Mr. Speaker, how much is there on both sides?
  The SPEAKER pro tempore. The gentleman from Michigan has 11 minutes 
remaining. The gentleman from Texas has 10\3/4\ minutes remaining.
  Mr. LEVIN. It is now my pleasure to yield 1 minute to the gentleman 
from Maine (Mr. Michaud), an active participant in discussions of trade 
issues.
  Mr. MICHAUD. Thank you very much, Mr. Chairman, for yielding, and I 
also thank you for your leadership on this issue of bringing this bill 
before the House.
  Mr. Speaker, I rise today to express my strong support for H.R. 2378. 
This issue is simple: China's currency manipulation is illegal, and it 
costs Maine jobs. Just ask the Sappi Fine paper mill workers in 
Westbrook and Skowhegan, or those at the NewPage mill in Rumford. They 
have seen their coworkers get laid off and were certified for Trade 
Adjustment Assistance because of cheap Chinese paper imports.
  In fact, over 9,000 Mainers in all sectors have lost their jobs 
because of our trade deficit with China, which is directly related to 
their currency manipulation. Companies like NewPage and Sappi Fine 
can't compete when China doesn't play by the rules.
  This bill will help us hold China's feet to the fire for their unfair 
trade practices. It will make sure American companies are competing on 
a level playing field. And it will save American jobs.
  I urge my colleagues to vote for this critical bill.
  Mr. BRADY of Texas. I reserve the balance of my time.
  Mr. LEVIN. Mr. Speaker, it is now my pleasure to yield 2 minutes to 
the very distinguished gentleman from New York (Mr. Rangel).
  Mr. RANGEL. Let me congratulate the chairman and the ranking member 
of Ways and Means for coming together to have this civil type of 
discourse, having our staffs work together, agreeing on some things, 
disagreeing on others, but showing that bipartisanship, while it might 
be in intensive care, at least on the Ways and Means Committee it is 
not dead.
  Mr. Speaker, we do recognize that there is a split among business 
people as to whether or not we should go forward with this bill that 
would point out to China, as so many developing countries would like 
to, but they certainly don't have our leverage, that it is time that 
they be fair in terms of international trade.
  Those people who buy from China and enjoy the lower prices, I can 
understand why they would not support the equity that we are seeking in 
international affairs, as well as in the WTO.
  But for those Americans who take a deep-seated pride when they see 
``made in the USA,'' when we know we can make it in the USA with jobs, 
then we don't get excited about the number of jobs that occur in China, 
but believe that it is patriotic, and if it hasn't reached that level, 
then certainly it is in the best interests of the United States of 
America, to say that we supported you, we supported you in getting into 
the World Trade Organization, with that comes some obligation. And if 
the President cannot succeed in persuading them, as he said, there are 
other means which we can use as a nation to encourage them to do the 
right thing.
  So, Mr. Speaker, I hope that the chairman here and the ranking member 
could find some other things before we go home that we can come 
together on. But until that happens, congratulations to both of you.
  Mr. BRADY of Texas. Mr. Speaker, I reserve the balance of my time.
  Mr. LEVIN. Mr. Speaker, I now yield 1\1/2\ minutes to the 
distinguished gentlewoman from Ohio (Ms. Sutton).

                              {time}  1700

  Ms. SUTTON. Thank you, Chairman Levin, for your leadership on this 
issue.
  Abusive trade practices by China have cost American small businesses 
opportunities and American workers jobs. We've heard the numbers--2.4 
million jobs lost across the country, 92,000 jobs lost in Ohio, and 
5,700 jobs have been lost in my congressional district due to China's 
deliberate and abusive trade policies--policies like their blatant 
currency manipulation that violates their obligations to international 
trading.
  Today, we say we've had enough. Today, we stand with American workers 
and American small businesses. We send a clear message that American 
workers and businesses will compete with Chinese workers and businesses 
but they should not have to compete against a manipulated currency.
  China's currency manipulation makes their goods artificially cheaper, 
costing our workers jobs and our businesses opportunities. Working 
families around the country see and feel the results of China's 
misaligned currency. We must stand against it. They see plants closing. 
They see friends and loved ones losing their jobs. And today, Mr. 
Speaker, they are seeing us stand up for American manufacturing and 
American workers and demand a level playing field and an end to China's 
currency manipulation.
  Mr. BRADY of Texas. Mr. Speaker, I reserve the balance of my time.
  Mr. LEVIN. Mr. Speaker, it is now my privilege, a deep privilege, to 
yield 1 minute to our distinguished Speaker, the gentlewoman from 
California (Ms. Pelosi).
  Ms. PELOSI. I thank our distinguished chairman of the Ways and Means 
Committee for the recognition and for his yielding time. I thank him 
for his leadership in bringing this legislation to the floor. I thank 
Mr. Murphy of Pennsylvania and Mr. Ryan of Ohio for their leadership in 
this important legislation.
  Mr. Speaker, for so many years we have watched the China-U.S. trade 
deficit grow and grow and grow. And today we are finally doing 
something about it by recognizing that China's manipulation of the 
currency represents a subsidy for Chinese exports coming to the United 
States and elsewhere.
  Many of us have been working on this issue for decades. Twenty years 
ago, when the issue of China trade was before the floor of the House, 
the trade deficit was $5 billion a year. The U.S.-China trade deficit 
was $5 billion a year. We thought that that gave us tremendous leverage 
for them to stop violating our intellectual property, to give us market 
access, to stop nontariff barriers to our products going into China, 
and the rest. We had other

[[Page 17042]]

issues with China's proliferation of weapons of mass destruction to 
Pakistan, with the actions taken in Tiananmen Square, and human rights 
in China and Tibet. But strictly on the subject of trade, the imbalance 
was $5 billion, which seems like an enormous amount of money.
  We tried through legislation, unsuccessfully, on the floor under both 
Democratic and Republican Presidents--this is not a partisan thing--and 
because of the opposition of the administration, we were not able to 
pass any legislation that said, Halt. We understand the U.S.-China 
relationship is an important one in every way--culturally, politically, 
diplomatically, economically, and commercially--but we need to play by 
the rules.
  When China came into the WTO, it was projected that they would play 
by the rules. But here we are today, and remember, I said the trade 
deficit was $5 billion a year 20 years ago when we were having this 
debate then. It is now $5 billion a week. A week. One way that we can 
address that is to address the issue of China's manipulation of the 
currency, which, as I mentioned, is a subsidy for their exports.
  We believe that passing this legislation here today will give the 
President leverage in his conversations with the Chinese about how 
seriously and closely the American people are watching this situation. 
As part of our Make It In America agenda to stop the erosion of our 
manufacturing, industrial, and technological base, we have to stop 
that. It's an economic issue and it's a national security issue that we 
have the manufacturing capacity to protect the American people in every 
way.
  So this is about America's workers. It's about making it in America 
so that our people can make it in America for their families, for their 
communities, for our country, for our economy. Especially now, when 
we're talking about all the new green technologies and the rest, which 
are part of the green, clean energy jobs for the future, and we see 
what is happening in the trade relationship with China on that score, 
it is absolutely essential, as we go farther into that future, that we 
do not have unfair subsidies of Chinese exports into the United States 
in the important competitive arena of innovation and new green 
technology.
  So with this bipartisan legislation, and, again, I commend 
Representative Tim Murphy and Representative Tim Ryan, we make it clear 
that if China wants a strong trading relationship with the United 
States, it must play by the rules. We owe that to American workers. It 
is our hope that passing this legislation, again, will give the Obama 
administration and future administrations greater leverage in its 
bilateral and multilateral negotiations with the Chinese Government. We 
do this because 1 million American jobs could be created if the Chinese 
Government took its thumb off the scale and allowed its currency to 
respond to market forces.
  The bipartisan Ryan-Murphy Currency Reform for Fair Trade Act marks a 
positive step in the direction of fairness for our workers, 
opportunities for our manufacturers, and growth for our economic 
prosperity. I urge our colleagues to vote ``aye.''
  Mr. BRADY of Texas. Mr. Speaker, I yield 2 minutes to the gentleman 
from Arizona (Mr. Flake), who is, again, focused on jobs and getting 
this economy back on track, as well as limiting the size of these 
dangerous debts and deficits.
  Mr. FLAKE. I thank the gentleman for yielding.
  I rise in opposition to this bill. There's no denying that there are 
issues related to Chinese currency valuation. Unfortunately, the 
passage of this bill today will do little to address those concerns. 
Instead, approval of this bill will likely only result in retaliatory 
actions on the part of the Chinese.
  A recent letter was penned to leaders of the House of Representatives 
by a variety of business groups, including the Chamber of Commerce, 
Business Roundtable, National Foreign Trade Council, and others. They 
wrote: ``Unilateral legislation, which seeks to increase tariffs on 
imports from China, is unlikely to incentivize China to move 
expeditiously to modify its exchange policies. Rather, it would likely 
have the opposite effect and could engender retaliation against U.S. 
exports into the Chinese market, currently the fastest growing market 
for U.S. exports.''
  Courting retaliation with no direct benefit likely qualifies for what 
you would call the very definition of counterproductive trade policy. 
And it's unfortunate that, as has been said here today before, in 2 
years this is about the only trade legislation that we've considered. 
Certainly, very little to open up new markets. We have three pending 
trade agreements that languish that should be approved, and yet this is 
what we're doing. That's really sad.
  Later today I think we're considering something like a Made in 
America Flag Act or something to require that we not import any flags 
made outside of the U.S. into the U.S. I don't know what's next. Maybe 
requiring Americans to eat apple pie while they make flags. I don't 
know. But we're into the crazy season here where we're simply pandering 
instead of actually addressing what will open new markets and help 
create jobs in the private sector.
  I urge opposition to H.R. 2378.
  Mr. LEVIN. I yield 1 minute to the distinguished gentleman and 
colleague from Michigan (Mr. Kildee).

                              {time}  1710

  Mr. KILDEE. I thank the gentleman for yielding.
  Mr. Speaker, I rise today in strong support of H.R. 2378, the 
Currency Reform for Fair Trade Act.
  For years, China has unfairly pegged its currency to the U.S. dollar 
at a fixed exchange rate. It is estimated that this undervalues Chinese 
currency 20 to 40 percent, allowing them to offer significantly cheaper 
products for export. American workers are playing by the rules, but 
they are struggling to compete on the unfair playing field Chinese 
currency manipulation has created.
  Cheap exports from China have contributed to hundreds of thousands of 
American job losses. In my hometown of Flint, Michigan, unemployment is 
more than 25 percent. However, currency manipulation is not currently 
considered when determining export subsidies to assist American 
businesses. This has to change. We must stand up for our workers and 
their livelihoods.
  H.R. 2378 will make currency manipulation a factor when the Commerce 
Department awards export subsidies. I have long advocated for fair 
trade policies that protect American workers. This bill will go a long 
way toward achieving that goal.
  I urge passage of the Currency Reform for Fair Trade Act.
  Mr. BRADY of Texas. I reserve the balance of my time.
  Mr. LEVIN. I yield 15 seconds to the gentleman from Ohio (Mr. Ryan).
  Mr. RYAN of Ohio. Mr. Speaker, I just want to respond to the 
gentleman from Arizona. He talked about our exporting products to 
China. This bill would actually increase the buying power of the 
Chinese consumer because their yuan would be worth more money so they 
would have more buying power to buy American exports.
  So this snake oil that the Chamber of Commerce is trying to send 
around and scare everybody not to vote for this doesn't make any sense. 
The more your currency is worth, the more you're going to be able to 
buy.
  Mr. LEVIN. I now yield 1 minute to the gentleman from New Jersey (Mr. 
Andrews).
  Mr. ANDREWS. I thank the chairman for yielding.
  My friend from Arizona said a few minutes ago, we're in the crazy 
season. I think on this issue we've been in the crazy season for about 
two decades. I think when we have a policy that says if the other side 
doesn't follow the rules, you just ignore it, I think that's crazy. If 
you have a policy that says if the Chinese manipulate their currency 
and make it easy to fill the shelves at Wal-Mart but empty the pockets 
of American workers and you ignore it, I think that's crazy.
  So I think the process of going forward when the other side doesn't 
play by the same rules that we do, that empties factories, empties 
wallets and

[[Page 17043]]

empties communities in this country, I think ignoring that is crazy. 
And I am glad to see that this House on a bipartisan basis for the 
first time in a long time is saying it's time to stand up for American 
communities, American companies and American workers and vote ``yes'' 
on this legislation.
  Mr. BRADY of Texas. Mr. Speaker, I continue to reserve.
  Mr. LEVIN. It is now my special privilege to yield 1 minute to the 
distinguished gentleman from Virginia (Mr. Perriello).
  Mr. PERRIELLO. Thank you very much for your leadership on this issue.
  This is a great day for American job creation, for the American 
worker, and a very sad day for American politics.
  This is simple. If we give the American people, the American worker 
and American business a level playing field, they will still out-
compete the world. We can still make it, build it and grow it better in 
America than anywhere else, if we give that fair playing field.
  What could be simpler than going after China for manipulating its 
currency and unfairly dumping its products and pushing out the much-
needed American manufacturing base that we must be rebuilding rather 
than suffocating?
  If ever there was something we should be able to come together on, it 
should be standing with American workers instead of Chinese 
corporations and Chinese rule-breaking. And yet here we have a debate 
rather than unity.
  Earlier today, we fought to extend health benefits to our heroes and 
their families from 9/11. And while we cheered and saluted, many on the 
other side of the aisle sat on their hands. Aren't these commonsense 
things that the American people are begging us to come together and 
focus on? Commonsense solutions. This is our chance--to fight for 
American jobs, like the steelworkers in my district. Six thousand 
manufacturing jobs lost to China in my district alone and 24,000 family 
members of those who have lost their jobs.
  For those who want to play games with this issue, it is long past 
time to do what is right.
  Mr. BRADY of Texas. Mr. Speaker, I yield myself 30 seconds.
  I do think it is unfortunate to try to interject partisan politics 
into a serious issue. There is already concern that after 4 years this 
bill is now being rushed to the floor a few weeks ahead of the 
election. I think at this point on an issue so serious, we ought to be 
thoughtful, understanding there are Members on both sides of the aisle 
that have come to different conclusions about this bill.
  With that, I continue to reserve my time.
  Mr. LEVIN. Mr. Speaker, how much time remains on either side?
  The SPEAKER pro tempore. The gentleman from Michigan has 2\1/4\ 
minutes, and the gentleman from Texas has 8\1/4\ minutes.
  Mr. LEVIN. I yield now 1 minute to the gentleman from Vermont (Mr. 
Welch).
  Mr. WELCH. I thank you, Mr. Chairman.
  Mr. Speaker, the American middle class has been built on having jobs 
that allow families to pay their bills, to send their kids to college, 
to own a home, to save for their own retirement.
  The American middle class has been under assault; their wages 
declining, their jobs being outsourced and sent abroad. Our fundamental 
responsibility is to give folks who want to work the opportunity to 
work in jobs that are going to allow them to take care of their 
families. And if we stand by idly when a competitor country manipulates 
its currency to put our manufacturers, our workers, at a disadvantage, 
we are complicit in that. And this is the bare minimum of what we can 
do--give our workers, give our manufacturers, give our American middle 
class an even shot at the American Dream.
  This legislation is necessary, it's overdue, and it must be passed.
  Mr. BRADY of Texas. Mr. Speaker, I continue to reserve.


                             General Leave

  Mr. LEVIN. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days in which to revise and extend their remarks and 
include extraneous material on H.R. 2378.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Michigan?
  There was no objection.
  Mr. LEVIN. Is the gentleman ready to close?
  Mr. BRADY of Texas. I am, Mr. Chairman.
  Mr. LEVIN. So am I.
  Mr. BRADY of Texas. Mr. Speaker, I yield myself the balance of my 
time.
  This is an issue, I think, where good people can disagree. There is 
unanimity in the desire for China to appreciate its currency. There are 
differences of opinion about what impact that truly would have on our 
complex relationship with China economically. And there have been a 
number of issues raised throughout the hearings on this bill, and I do 
appreciate, to Chairman Levin, taking into account the number of the 
objections on the most, we think, troubling provisions that Ranking 
Member Dave Camp from Michigan and others raised during those hearings. 
I think some of those issues have been addressed in a very positive 
way, but there are real concerns about how effective this will be, and 
if it will truly compel China to change its currency regime or that it 
will significantly change our trade deficit.
  I would like to submit for the Record a letter sent by, I think, 
almost 30 of our major job creators in America, groups that represent 
many of our agriculture companies and workers, our technology sector, 
our manufacturing and financial services sector, those who produce and 
sell medical devices and services throughout the world, including 
groups like the National Retail Federation; the broader job creators 
like the U.S. Chamber of Commerce, the Business Roundtable and 
companies that compete and succeed successfully selling U.S. products 
in China.
  This letter agrees with Chairman Levin and others that China needs a 
yuan exchange rate response to trade flows and that China should move 
rapidly toward that. But it says:
  ``We do not agree, however, that H.R. 2378 as reported can help 
achieve that goal. To the contrary, we believe that passage of this 
legislation is counterproductive not only to the goals related to 
China's exchange rate that we all share but also to our Nation's 
broader goals of addressing the many and growing challenges in the 
U.S.-China economic relationship, including inadequate protection of 
intellectual property, restrictions on market access, financial 
services liberalization, export of commodities such as rare earths, 
discriminatory indigenous innovation and other industrial policies. 
Above all, this legislation will do more harm than good to job creation 
and economic growth at a time when we need both dearly.''
  The point of that, I think, is that there are a number of barriers to 
selling U.S. products fairly and successfully in that growing Chinese 
market. We all have the same goal. How we achieve it is where we 
honestly differ.

                              {time}  1720

  This group concludes this way:
  ``We share Congress' desire to have China act more quickly to adopt a 
market-determined exchange rate, but the proposed unilateral measure is 
not going to achieve that result. We urge you to oppose H.R. 2378 and, 
instead, work with and vigorously call on the administration to develop 
a robust bilateral and multilateral approach to achieve tangible 
results, not only on China's exchange rate policies, but also on other 
Chinese policies that are harming American businesses, workers and 
farmers.''
  I think that is the point, perhaps, of those of us who believe this 
bill will not achieve what we hope.
  While I urge opposition of this bill, there are those who believe 
that, as we move forward, regardless of the outcome, we ought to, 
Republicans and Democrats, join hands and insist on fair access to 
Chinese markets, on a level playing field and on a growing trade 
relationship that is balanced to increase Chinese consumption, as well 
as to increase U.S. savings that will rebalance the trade relationship 
for decades to come. We share those goals and

[[Page 17044]]

look forward to working with those in Congress who also share them.

                                               September 28, 2010.
     Hon. Nancy Pelosi,
     Speaker, House of Representatives,
     U.S. Capitol, Washington, DC.
     Hon. Steny Hoyer,
     Majority Leader, House of Representatives,
     U.S. Capitol, Washington, DC.
     Hon. John Boehner,
     Republican Leader, House of Representatives,
     U.S. Capitol, Washington, DC.
       Dear Speaker Pelosi and Leaders Hoyer and Boehner: Like 
     Congress and the Administration, we agree that China needs a 
     yuan exchange rate that responds to trade flows and that 
     China should move rapidly towards a market-determined 
     exchange rate. In addition to continuing U.S. government 
     efforts, our organizations support strong, coordinated and 
     enhanced multilateral pressure, including at the early 
     October Finance Ministers' Meeting in Washington and 
     continuing at the November G20 Leaders' Meeting in Seoul, to 
     achieve concrete progress on China's currency and exchange 
     rate policies.
       We do not agree, however, that H.R. 2378 as reported by the 
     Committee on Ways and Means can help achieve that goal. To 
     the contrary, we believe that passage of this legislation is 
     counterproductive not only to the goals related to China's 
     exchange rate that we all share, but also to our nation's 
     broader goals of addressing the many and growing challenges 
     in the U.S.-China economic relationship, including inadequate 
     protection of intellectual property, restrictions on market 
     access, financial services liberalization, export of 
     commodities such as rare earths, discriminatory indigenous 
     innovation and other industrial policies. Above all this 
     legislation will do more harm than good to job creation and 
     economic growth at a time when we need both dearly.
       Unilateral legislation, which seeks to increase tariffs on 
     imports from China, is unlikely to incentivize China to move 
     expeditiously to modify its exchange policies. Rather, it 
     would likely have the opposite effect and could engender 
     retaliation against U.S. exports into the Chinese market, 
     currently the fastest-growing market for U.S. exports. Our 
     companies do not fear retaliation--if it were based on WTO-
     consistent actions that would achieve the desired result, 
     with benefits outweighing the costs. But counterproductive 
     tariff legislation will not get us closer to the goal of a 
     market-driven exchange rate and will shift the focus away 
     from the core issue of China's currency and onto U.S. 
     unilateral action. Such an action would embolden PRC 
     retaliation and undermine U.S. government efforts to address 
     a growing number of discriminatory Chinese policies, 
     weakening our economy by harming American exports of 
     manufactured goods and farm products.
       Despite efforts to make H.R. 2378 consistent with the rules 
     of the WTO, it is not clear that the legislation meets the 
     WTO's standards for the application of countervailing duties 
     (CVDs). The legislation would require the Commerce Department 
     to estimate what the ``true'' exchange rate is, a process 
     that will be highly subjective and potentially politicized. 
     Since application of CVDs to imports from China on the basis 
     of this legislation is of questionable WTO legality, China 
     would almost certainly challenge this action as violative of 
     U.S. WTO obligations, which would focus the world's attention 
     on the United States and WTO technicalities, and away from 
     China's exchange-rate policies.
       We share Congress' desire to have China act more quickly to 
     adopt a market-determined exchange rate. But the proposed 
     unilateral measure is not going to achieve that result. We 
     urge you to oppose H.R. 2378 and instead work with and 
     vigorously call on the Administration to develop a robust 
     bilateral and multilateral approach to achieve tangible 
     results not only on China's exchange-rate policies, but also 
     on other Chinese policies that are harming American 
     businesses, workers and farmers.
       Sincerely,
         Advanced Medical Technology Association (AdvaMed); 
           American Chamber of Commerce in China; American Chamber 
           of Commerce in Shanghai; American Chamber of Commerce 
           in South China; American Apparel & Footwear Association 
           (AAFA); American Soybean Association; American Meat 
           Institute; Business Roundtable; Coalition of New 
           England Companies for Trade (CONECT); Coalition of 
           Service Industries; Consumer Electronics Association; 
           and Corn Refiners Association.
         Distilled Spirits Council of the United States; Emergency 
           Committee for American Trade (ECAT); Fashion 
           Accessories Shippers Association (FASA); Financial 
           Services Forum; Financial Services Roundtable; 
           International Dairy Foods Association; Los Angeles 
           Customs Brokers and Freight Forwarders Association; 
           National Cattlemen's Beef Association; National Customs 
           Brokers and Forwarders Association of America (NCBFAA); 
           National Fisheries Institute; National Foreign Trade 
           Council; and National Retail Federation.
         Pacific Coast Council of Customs Brokers and Freight 
           Forwarders (PCC); Retail Industry Leaders Association; 
           Securities Industry and Financial Markets Association; 
           Sporting Goods Manufacturers Association; Toy Industry 
           Association; Travel Goods Association (TGA); United 
           States Association of Importers of Textiles and Apparel 
           (USA-ITA); U.S. Chamber of Commerce; US-China Business 
           Council; U.S. Council for International Business; USA 
           Poultry & Egg Export Council; and Washington State 
           China Relations Council.

  Mr. Speaker, I yield back the balance of my time.
  Mr. LEVIN. I yield myself the balance of my time.
  Mr. Speaker, international trade is here to stay. The question before 
us today is whether we shape its course or simply let it roll--whether 
there are rules of competition that allow us to compete or whether we 
look the other way.
  A 25-40 percent tilt against us is unacceptable. This bill says we 
cannot and will not look the other way. We are going to act. I say the 
more multilateral effort the better, but the lack of it should not 
leave us without a remedy.
  China's manipulation of its currency is a major unilateral act, and 
we need to act. The President of our country said to the Chinese 
Premier, ``Make your currency flexible or we have other means.'' This 
is just such a means.
  This is a real problem. No more excuses. Goodwill isn't enough. We 
need a real answer. This is a real answer. Support this legislation.
  Mr. PASCRELL. Mr. Speaker, I want to thank Chairman Levin for 
bringing this bill to the floor today, as well as the sponsors of this 
legislation, Mr. Ryan and Mr. Johnson for working in a bipartisan way 
on behalf of America's workers and manufacturers.
  In the Ways and Means Committee, we have studied how China uses 
``state capitalism'' to manipulate world trade to give its industries 
an unfair advantage over the rest of the world, at the expensive of our 
workers and businesses.
  Currency manipulation is just the tip of the iceberg. China provides 
government subsidizes to favored industries--notably green technology, 
selectively rebates its value added tax to penalize imports and 
encourage exports, imposes restrictive local content rules, and 
practices an ``indigenous innovation'' policy. We must deal with each 
of these issues as a part of a broad strategy.
  Everyone acknowledges the reality that China's currency is 
fundamentally undervalued. My friends on the other side of the aisle, 
the Administration, our international partners, and even China itself 
have all said the RMB could and should appreciate.
  However, despite this widespread consensus, China has not taken any 
meaningful steps to correct this manipulation that disrupts the flow of 
international trade.
  With the passage of this bill today, we signal to China that enough 
is enough. The free ride is over. We will not stand by while we lose 
1.5 million Americans jobs and shave 1.5 percent off of our GDP every 
year.
  I hope that this legislation will cause China to change its behavior 
and strengthen the Administration's hand in multilateral negotiations. 
But after 8 years of asking nicely, the Congress will not be silent 
anymore.
  We must allow American industries to respond to the injury being 
caused by this policy, and H.R. 2378 will help level the playing field, 
plain and simple--when the playing field is level, the American worker 
can out-compete anyone.
  Our system of international trade only works when everyone plays by 
the same rules. By passing this legislation, we stand up for that 
system, and stand up for American workers and businesses.
  Mr. HOLT. Mr. Speaker, I rise in support of H.R. 2378, the Currency 
Reform for Fair Trade Act. For every worker, every business, and every 
nation to get a fair shake in today's global economy, everyone must 
play by the rules. For too long, China has violated the rules of the 
global economy by deliberately undervaluing its currency. This practice 
reduces the costs of Chinese exports and makes it more expensive to 
export U.S. products to China, giving China an unfair advantage and 
making it difficult for U.S. companies to compete. I hear far too often 
from workers in central New Jersey who have been victims of this 
unfairness. They are laid off as their employers are undercut by 
Chinese competitors and forced to cut jobs or go out of business.
  That story is repeated time and again around the country, and our 
economy suffers. The U.S. trade deficit with China ballooned

[[Page 17045]]

from $10 billion in 1990 to $226 billion in 2009. Economists estimate 
that China's currency manipulation reduces U.S. Gross Domestic Product 
by 1.4 percentage points annually and has led to the loss or 
displacement of millions of manufacturing jobs over the last decade. 
One recent study concluded that the increasing trade deficit with China 
will cost over 500,000 U.S. jobs in 2010 alone.
  The Currency Reform for Fair Trade Act gives the Department of 
Commerce the necessary tools to combat unfair manipulation of foreign 
currencies. Upon finding that currency manipulation meets the criteria 
for an export subsidy, the Department will have the authority to 
correct the unfair advantage by impose countervailing duties that are 
consistent with World Trade Organization regulations. When they have a 
level playing field, Americans can and will out-compete their 
international counterparts every time. Passing this bill is an 
important step in preserving a fair world market for U.S. goods, 
revitalizing our domestic manufacturing base, and creating jobs for 
American workers.
  Mr. KUCINICH. Mr. Speaker, I rise in strong support of H.R. 2378, the 
Currency Reform for Fair Trade Act. This legislation addresses the 
suppression of the renminbi--or RMB--the official currency of the 
People's Republic of China. The suppression of the RMB allows China to 
make its exports cheaper and thus makes foreign imports into China more 
expensive. As Chinese trade deficits continue to grow, so too does the 
negative impact on American workers, many of whom have been displaced 
by the growing trade deficit.
  This legislation requires the Department of Commerce to levy 
countervailing duties if the affected U.S. company can prove it has 
been ``materially injured'' by imports from any country with 
undervalued currency. I strongly support the legislation and the 
remedial tools it provides to the Department of Commerce and American 
workers.
  According to the Economic Policy Institute (EPI), ever increasing 
China trade deficits will displace between 512,000 and 566,000 jobs in 
the U.S. just this year. Between 2001 and 2007, 561,000 jobs were 
displaced by the China trade deficit. Two-thirds of the jobs displaced 
were in the manufacturing sector.
  At the same time, we must remember that if we are trying to prevent 
the loss of more American jobs, we cannot forget about the reasons we 
have lost jobs in the U.S. We need to talk about the free trade 
policies we have actively pursued that have shipped American jobs 
overseas and left the American manufacturing sector in shambles.
  The consideration of H.R. 2378 is an indication that we must do more 
to ensure that American industries, as a foundational part of our 
economy, remain strong. But it is not enough. Ohio has seen far too 
many idling manufacturing mills and hundreds of long-time steel workers 
being laid off at once. According to Public Citizen, of the 22 million 
jobs expected to be created in the U.S. between 2000 and 2010, only 
187,000 or 0.1 percent will be manufacturing jobs. Ohio is one of the 
top ten states posting the biggest job losses in the manufacturing 
sector.
  We cannot have a strong American economy without a strong industrial 
manufacturing sector that includes not only the steel industry, but 
also the auto, shipping and aerospace industries. Addressing our trade 
deficit and foreign policies that add to it is important. But it is 
also about addressing our policies. I am the proud author of H. Res. 
444, which says that the steel, automotive, aerospace and shipping 
industries are vital to America's national and economic security. We 
need a coordinated federal policy that puts the manufacturing sector 
back in its rightful place as an engine of the American economy.
  I strongly support passage of this legislation and will continue to 
work to shore up our local manufacturing base and protect American 
workers.
  Mr. CONYERS. Mr. Speaker, international trade is an integral part of 
the Southeast Michigan economy, with nearly $113.3 billion worth of 
surface trade passing between the United States and Canada at the 
Detroit-Windsor border every year. I am, however, concerned that other 
nations' unfair trade practices have significantly hurt American 
workers. This is why I rise in support H.R. 2378, the ``Currency Reform 
for Fair Trade Act,'' which will address currency manipulation.
  Countries such as Japan and China have both manipulated their 
currencies and hurt American exporters. For example, Japan's currency 
has been undervalued by up to 25 percent in the past. This means that a 
car imported from Japan for $20,000 has a hidden subsidy of up to 
$5,000. According to General Motors' chief economist, Mustafa 
Mohatarem, ``Japan's policies provided anywhere from a $2,000 to 
$14,000 cash windfall for each of the 2.2 million vehicles Japan's 
automakers exported to the U.S. in 2006.''
  Even worse, China has undervalued its currency by up 40 percent in 
the past, which has put American manufacturers at a severe 
disadvantage. China's currency manipulation also attracts foreign 
investment into China and away from American manufacturing facilities. 
A recent study found that the U.S. has lost more than 2.3 million jobs 
since 2001 just as a result of the U.S. trade deficit with China. On a 
recent trip to China, President Obama urged the Chinese Yuan to 
appreciate and prevent global imbalances.
  The Currency Reform for Fair Trade Act will take important steps in 
helping to address these unfair trade practices. The Act would empower 
the Department of Commerce to make findings that identify currency 
manipulation as an export subsidy. Today's legislation would make it 
easier for the Department of Commerce to add a countervailing duty to 
offset the amount of the export subsidy from currency manipulation. I 
believe American manufacturers can have honest and fair competition 
with foreign imports and thrive in global markets.
  Mr. Speaker, in the American Recovery and Reinvestment Act, we hailed 
the investments in green and renewable technologies. However, many 
Americans green technology firms are being hurt by currency 
manipulation and other subsidies. Just last week, the Steel Workers 
filed a petition with the United States Trade Representative regarding 
China's currency manipulation and other subsidies to the green 
technology manufacturing industry. If the United States is to lead in 
this industry as well as revitalize our manufacturing base, we need to 
make sure American firms can compete on a level playing field in the 
international market. I urge my colleagues to support today's 
legislation.
  Mr. SPRATT. Mr. Speaker, today, I rise to support a bipartisan bill 
that will help rebuild our manufacturing sector and continue our 
economic recovery.
  I am proud to be a cosponsor of the ``Currency Reform for Fair Trade 
Act.'' The legislation was introduced in response to China's persistent 
intervention to keep its currency undervalued by 35-40 percent relative 
to the dollar and its resort to illegal subsidies and non-tariff 
barriers to promote its own industries at the expense of U.S. 
manufacturing jobs.
  These practices affect billions of dollars in trade and have allowed 
China to flood our markets with their products while they limit our 
ability to export our goods to them. Many companies are left with 
little choice but to move their operations offshore in order to 
compete, costing us precious jobs.
  According to the textile industry, these unfair trade practices have 
cost the United States over a million manufacturing jobs in the last 
decade, including hundreds of thousands of textile and apparel jobs.
  The devaluation of China's currency worsens the already severe U.S-
China trade deficit. Statistics show that between January 2000 and May 
2009, China's share of the U.S. trade deficit for non-oil goods grew 
from 26 percent to 83 percent. If we can convince the Chinese to stop 
pegging its currency, U.S. exports would get a huge boost, and in time, 
so would investment in new plant and equipment.
  This is a great way to stimulate an economy on the mend without 
adding a dime to the deficit or incurring new public debt.
  Specifically, the ``Currency Reform for Fair Trade Act'' requires the 
U.S. Department of Commerce to: (1) determine, based on certain 
requirements, whether the exchange rate of the currency of an exporting 
country is fundamentally and actionably undervalued or overvalued 
(misaligned) against the U.S. dollar for an 18-month period; and (2) 
take certain actions under a countervailing duty or antidumping duty 
proceeding to offset such misalignment in cases of an affirmative 
determination. This legislation provides U.S. manufacturers and workers 
the necessary tools to defend themselves against anti-competitive trade 
practices of foreign governments, whether it's China or any other 
country.
  About ten years ago, I joined Representative Sue Myrick in sponsoring 
one of the first bills filed to force a change in China's currency 
policy. The United States has been seeking to negotiate a solution to 
the issue for a decade without success; and recent talks between the 
Obama administration and Chinese officials have made marginal progress 
at best.
  All we're asking for here is a level playing field for U.S. 
businesses.
  Mr. STARK. Mr. Speaker, I rise today in support of H.R. 2378 the 
Currency Reform for Fair Trade Act.
  American manufacturing has a long and proud history, but for years 
has lost hundreds of thousands of good paying jobs. Our workers are 
losing jobs to China, a country that

[[Page 17046]]

 blatantly violates international trade laws. The Chinese government's 
prolonged and intentional intervention in its currency markets keeps 
the price of Chinese goods in the United States artificially low and 
the price of U.S. goods sold in China artificially high. With this 
pricing advantage, manufacturing jobs move to China instead of staying 
here in the U.S. Economists estimate that the Chinese currency is 
undervalued by between 25 and 40 percent. How can our manufacturing 
sector workers compete against a country that has the ability to 
effectively subsidize its exports by 25 to 40 percent?
  It is our responsibility to stand up and defend our workers against 
these illegal practices. The Currency Reform for Fair Trade Act is just 
the first step to level the playing field between U.S. and Chinese 
manufacturers. The legislation expands our trade laws so that we can 
better combat illegal practices by countries that seek unfair 
advantages. The bill targets countries that persistently and 
significantly undervalue their currency. When these illegal subsidies 
harm a U.S. industry, our government will be able to impose 
countervailing duties to negate their impact.
  This legislation is not the cure all for our $266 billion trade 
deficit with China, but it should help our manufacturers. Nobel 
laureate Paul Krugman estimates that if China's currency manipulation 
ended, we would gain 6,000 jobs per billion dollar shift in the trade 
deficit and could therefore save or create 1.4 or 1.5 million jobs. 
Fred Bergsten, the director of the Peterson Institute of International 
Economics also offers an optimistic statistic, that an appreciation of 
China's currency could generate 700,000 to 1 million U.S. jobs. We 
cannot turn our back on this kind of job creation. I urge my colleagues 
to support this bill to begin bringing good jobs back to America.
  Mr. GENE GREEN of Texas. Mr. Speaker, I rise in support of the 
Currency Reform for Fair Trade Act that is before the House today. I am 
an original cosponsor of this legislation and strongly urge my 
colleagues to support it.
  As Americans continue to suffer from stagnant pay, underemployment, 
and 9.6 percent unemployment, across the Pacific in the People's 
Republic of China, business is booming. Almost all of this growth is 
due to China's export sector, which is able to sell goods at low prices 
and face little to no international competition domestically due to 
China's manipulation of its currency, the Renminbi, RMB.
  Economists from across the political spectrum estimate that the 
Renminbi is undervalued by at least 35 to 40 percent. In other words, 
U.S. goods are, at least 35 percent, more expensive for Chinese 
consumers and make Chinese goods, at least 35 percent, cheaper in the 
United States.
  China's currency manipulation has had terrible effects for competing 
economies from around the globe. Nations that rely heavily on 
exportation for growth, such as Japan and South Korea, have begun or 
are taking measures to emulate Beijing's manipulation of their own 
currencies so their goods can compete.
  In the United States, the non-partisan Economic Policy Institute has 
estimated that between 2001 and 2008 alone, the growing trade deficits 
with China have displaced 2.4 million jobs. Sixty percent of these jobs 
were in the manufacturing sector, the very sector that has given 
millions of Americans a path into the middle class.
  If China allowed its currency to ``float'' on the international 
market, in a fashion similar to the U.S. Dollar, British Pound, and 
Japanese Yen, it could create a million U.S. manufacturing jobs and cut 
our trade deficit with China by $100 billion a year, with no cost to 
the U.S. Treasury.
  For years, this Congress, as well as the Administrations of President 
Bush and President Obama, have tried to persuade the Chinese government 
to moderate or end the manipulation of its currency. No significant 
progress has been made.
  It is time we take action to hold China accountable for their market 
distortion and protectionist practices.
  A vote ``yes'' today is a vote to stand up for American workers, to 
take strides to boost our economy, and to strengthen our domestic 
manufacturing sector.
  Mr. TURNER. Mr. Speaker, today I speak in favor of H.R. 2378, the 
Currency Reform for Fair Trade Act, which seeks to level the playing 
field for American companies, some of whom have found themselves unable 
to compete with foreign companies who are unfairly subsidized by 
foreign governments.
  Mr. Speaker, I would like to take my time to recognize the work of 
former Congressman Phil English, who represented the 3rd District of 
Pennsylvania until the 111th Congress. Congressman English was a long-
time supporter of American manufacturers and was a champion of raising 
awareness and solving the problem of illegal trade practices.
  Congressman English raised these issues when he introduced H. Res. 
414 in the 108th Congress. The resolution, which encouraged China to 
engage fair currency valuation, passed nearly unanimously (411-1) in 
October 2003.
  In the 109th Congress, Representative English introduced the first 
China currency bill in the House--H.R. 3004, the Currency Harmonization 
through Neutralizing Action, CHINA, Act. The bill directed the Treasury 
Department to analyze the exchange rate policies of the People's 
Republic of China, and to impose additional tariffs, if necessary, to 
equalize any currency manipulations.
  He also helped advocate for the Department of Commerce to consider 
countervailing duty cases for nonmarket economies, such as China. First 
introducing this legislation in the 106th Congress, H.R. 3198, he 
pushed to clarify the countervailing duty statute to ensure these cases 
against China could proceed.
  In the 109th Congress, the House passed H.R. 3283, English's bill to 
apply the countervailing duty law to nonmarket economies. It was after 
this bill passed the House that the Department of Commerce ultimately 
reversed its own policy and started accepting countervailing duty cases 
against China.
  Mr. Speaker, as we look to help our domestic industry compete against 
unfair competition abroad, H.R. 2378 is an important step.
  Mr. MANZULLO. Mr. Speaker, this day has been long in coming. In 2003, 
I was one of the first Members of Congress to introduce legislation on 
this topic to stop this anti-free market practice of foreign 
governments of deliberately undermining the value of their own currency 
to make their exports less expensive and foreign imports more costly. 
We have had some modest progress over the years but the overall 
practice continues to the detriment of our manufacturers and farmers.
  Currently, counties in northern Illinois have an official 
unemployment rate of between 8 and 16.4 percent. The unemployment rate 
in the cities of Rockford, Belvidere, and Freeport are 17.4 percent, 
17.8 percent, and 13.3 percent respectively. But if you include those 
who have given up looking for work, the real unemployment rate for 
these counties and cities is probably somewhere between 18 and 28 
percent. We can't wait any longer for more promises to solve this 
problem in the future.
  I am pleased to support the ``new and improved version'' of the 
legislation introduced by my fellow co-chair of the House Manufacturing 
Caucus, Representative Tim Ryan of Ohio, to combat exchange rate 
misalignment by China and other foreign governments. I am a proud 
original co-sponsor of this legislation. Regardless of any person's 
view on free trade, opposing exchange rate undervaluation is an area 
where both sides of the trade debate should come together. We must take 
a stand to stop China and other nations from making their imports 
cheaper in the U.S. and our exports more expensive in their country.
  Let me relate the experience of one manufacturer from Rockford, 
Illinois, Jerry Busse of Rockford Toolcraft. He was quoted in the 
Rockford Register Star last August saying, ``We have done work for a 
big manufacturer in Chicago for 20 years. All of a sudden we lost a lot 
of their business because they decided to move the work to China.'' 
Jerry Busse asked the Chicago company what he had to do to get the work 
back. The prices they were getting from China were close to what 
Rockford Toolcraft had been getting. Jerry Busse thought to himself 
that he could do the work for that amount but the Chicago company 
refused. According to Jerry Busse, the management of the Chicago firm 
said anyone in America has to be 30 percent under the Chinese price. 
Mr. Speaker, 30 percent is approximately the undervaluation of the 
Chinese currency. Suffice it to say that Rockford Toolcraft couldn't 
meet this predatory price and lost a customer.
  Despite any differences we may have over trade policy, we should all 
agree on the need to stop foreign governments from undervaluing their 
currencies to gain an economic advantage over us by making their goods 
artificially less expensive in the United States and making our exports 
more expensive overseas.
  This bill is not targeted at one country. Currency undervaluation is 
not just a problem that plagues our trade relationship with China. 
About two weeks ago, Japanese monetary authorities sold a large amount 
of yen against the dollar to stem the Japanese currency's sharp 
appreciation against the U.S.--the first time since 2004. Other 
countries have joined in this anti-capitalistic, mercantilist behavior 
over the years and they should be equally condemned. It is in their 
long-term self interest to eventually move to a valuation of their 
currency that is based on the marketplace--not by a government 
official.

[[Page 17047]]

  Fred Bergsten, Director of the highly respected Peterson Institute 
for International Economics, estimated that correction of all of the 
Asian currency undervaluations would cut the global U.S. trade deficit 
by about $100 billion and generate at least 700,000 jobs.
  This legislation provides another weapon in our trade arsenal to 
empower our trade enforcement officials to confront unfair trade 
practices by China and others. The revised bill gives discretion to the 
Department of Commerce to consider currency undervaluation as another 
form of a government subsidy that is eligible for higher countervailing 
duties.
  This legislation is preferable to other bills that would impose 
blanket, across-the-board tariffs on just Chinese goods that would 
almost immediately be ruled illegal by the World Trade Organization. 
This approach is WTO compliant and does not target one specific country 
over another for currency undervaluation. This bill should unite both 
spectrums of the trade debate and one that should send shockwaves to 
capitals of foreign governments that deliberately undervalue their 
currency for a trade advantage. The frustration level is high among our 
small manufacturers such as Jerry Busse and the time is ripe for 
Congress to act.
  I'm here as a proponent of free but fair trade in support of this 
carefully crafted legislation and I urge my colleagues to do the same. 
If you want to stop Chinese imports coming in at predatory prices and 
give our manufacturers and farmers the chance to fairly compete, then 
support this bill. If you don't like government subsidies and 
interference in the marketplace; if you prefer capitalism to 
mercantilism; then you vote for this bill.
  Mr. VAN HOLLEN. Mr. Speaker, I rise in strong support of H.R. 2378, 
the Currency Reform Fair Trade Act.
  First, I want to thank Chairman Levin and his staff for crafting this 
responsible and much needed WTO compliant legislation.
  There is wide agreement that China is deliberately and illegally 
intervening in global currency markets to benefit its own economy. 
According to the Peterson Institute of International Economics, because 
of repeated Chinese government intervention, the RMB is unfairly 
undervalued by as much as 24 percent against the dollar.
  This practice is harming the U.S. economy and weakening our ability 
to promote economic growth and jobs. Again, according to the Peterson 
Institute, if the RMB was fairly valued, there would be 500,000 more 
Americans employed today in good paying manufacturing jobs.
  The President's strategy for boosting the economy includes a two year 
plan to increase manufacturing and expand exports--but increasing 
exports in a global economy where American goods are artificially more 
expensive than comparable Chinese goods, is like fighting an uphill 
battle.
  H.R. 2378 will help encourage the Chinese government to do the right 
thing and float its currency in a wider band. This will help to protect 
those American businesses and jobs that are being injured by the 
imbalance.
  Specifically, the bill requires the Department of Commerce to view 
deliberate currency undervaluation as an illegal export subsidy just as 
the World Trade Organization does. If this bill becomes law, Commerce 
will have to use the same standard as the WTO when determining whether 
an illegal export subsidy exists. Commerce will have to weigh all 
relevant factors, including currency undervaluation, when determining 
whether to recommend that ``countervailing duties'' be applied against 
a foreign import.
  This bill does not just target China, though China is the leading 
abuser of this practice. Any country that unfairly and significantly 
acts to suppress the value of its currency to boost its own exports 
will be a target.
  The President's plan for strengthening the economy includes a 
vigorous enforcement of our rights in the global trade arena. The WTO 
says we have a right to respond when our trading partners employ 
illegal practices that injure our businesses. H.R. 2378 ensures that 
the Department of Commerce does not overlook or underestimate the 
impact that currency undervaluation has on American businesses.
  I encourage my colleagues to support this measure. It provides one 
more tool that can be used to protect American companies and the 
workers they employ in the ongoing push to boost the U.S. economy.
  Mr. DINGELL. Mr. Speaker, I rise in strong support of H.R. 2378, the 
Currency Reform for Fair Trade Act, of which I am also a co-sponsor. 
For too long, the United States has stood idly by while its trading 
partners--China, in particular--have manipulated the value of their 
currencies to gain a competitive advantage. H.R. 2378 will strengthen 
our country's ability to impose punitive tariffs on currency 
manipulators and, in so doing, help protect American workers and 
businesses from this most unfair trade practice.
  I wish to thank Congressman Ryan of Ohio for introducing this fine 
bill. I also commend my good friend and colleague from Michigan, 
Chairman Sander Levin of the Committee on Ways and Means, for 
understanding the dire need for this legislation and amending it in 
such a manner that conforms to the United States' obligations as a 
member of the World Trade Organization. I hope China will take note of 
this and adjust its behavior accordingly.
  I urge my colleagues to vote in favor of H.R. 2378 and further call 
on the United States Senate to pass this bill with all due haste.
  Mr. LIPINSKI. Mr. Speaker, I rise in strong support of H.R. 2378, the 
Currency Reform for Fair Trade Act. I am a proud cosponsor of this 
bill, and am pleased that this measure has been brought up for a vote.
  American manufacturers are facing numerous challenges during this 
recession, but China's manipulation of its currency is undoubtedly the 
most insidious. These unfair practices put U.S. firms at a distinct 
disadvantage in their efforts to remain competitive and to export goods 
to a growing global market. By fixing the value of the renminbi to the 
American dollar, China effectively undervalues its currency by at least 
25 percent and affords its manufacturers an unfair advantage, making 
their exports artificially cheap. As a result of this manipulation, 
American-made products are unable to compete in the marketplace and 
American manufacturers and other exporters are forced to lay off 
workers.
  H.R. 2378 will begin to address this market exploitation by allowing 
the United States to assess countervailing and anti-dumping duties on 
products exported from any nation that benefits from the export subsidy 
of manipulated currency. It has been estimated that by implementing 
these duties as many as 500,000 U.S. manufacturing jobs will be 
created. And by making American manufacturers more competitive, we can 
begin to overcome the estimated 1.4 percent annual GDP reduction caused 
by China's currency manipulation.
  While both Presidents Bush and Obama have sought to address China's 
currency manipulation diplomatically through both bilateral and 
multilateral channels, China has provided only empty pledges to allow 
its currency to float freely with the market--pledges that have never 
truly been realized. When one looks at the value of the Chinese 
renminbi against the U.S. dollar, it is remarkable how unnaturally flat 
the rate has remained for the last 2 years. Though the renminbi has 
appreciated by a tiny amount in recent months, this is an obvious 
attempt by the Chinese to leave the impression that it is acting 
responsibly with respect to its currency, when in fact we all know that 
is not the case. This legislation is crucial to overcoming China's 
failed promises to operate in the global economy under fair rules and 
standards.
  This is not some esoteric exercise. China's currency manipulation has 
a direct effect on a wide range of U.S. manufacturers, from steel to 
paper, machinery to textiles. It has driven firms out of business and 
cost us millions of jobs, especially in the Midwest. It serves to 
decrease exports and widen our trade deficit with China at a time when 
we need to be expanding our exports and growing our economy. As my 
constituent Zach Mottl, of Atlas Tool and Die and the Tool and 
Manufacturing Association, said, ``a few percentage point difference 
[in currency value] can make that difference in terms of whether a 
company buys here or buys overseas.''
  It is the government's duty to defend the American people. American 
workers and families have been under assault for years from China's 
unfair currency policy which steals American jobs. While we've been 
playing by the rules, China has enriched itself by deliberately 
ignoring them. Our policy has been all carrot and no stick, with 
unfortunate but predictable consequences. We cannot continue to allow 
American businesses and workers to be put out of work by China's 
currency manipulation. I am pleased to support this much needed, 
bipartisan legislation, and I urge the Senate to quickly act on this 
important measure in order to bring fairness and balance to 
international trade.
  Mr. PAUL. Mr. Speaker, the imbalances in international trade, and in 
particular trade between China and the United States, have prompted 
many to demand a realignment of the Chinese yuan and the American 
dollar. Since we are running a huge trade deficit with China the call 
now is for a stronger yuan and a weaker dollar. This trade imbalance 
problem will not be solved so easily.
  I would urge my colleagues to consider the benefits we receive from 
our relationship with China, one of which is that American consumers 
benefit from lower-priced goods. Adopting the policy urged by 
supporters of this bill would cause consumer prices to increase,

[[Page 17048]]

thus reducing consumers' wealth. Other producers would suffer as a 
result of the consumers' decreased purchasing power. I doubt that many 
of our constituents want us to increase the prices they pay for goods 
and services.
  Congress should also consider how the Chinese benefit the United 
States government by holding our debt. The dollars the Chinese acquire 
by selling us goods and services must be returned to the United States. 
Since the Chinese are not buying an equivalent amount of American goods 
and services, they are using the dollars to finance Congress' 
extravagant spending.
  This deep and legitimate concern for the trade imbalance between 
China and the U.S. will fall short if the issue of fluctuating, world-
wide fiat currencies is not addressed. The fact that the U.S. dollar is 
the principal reserve currency of the world gives us a benefit that 
others do not enjoy. It allows us to export paper dollars and import 
goods manufactured in countries with cheap labor. It also allows us to 
finance the welfare/warfare state with cheap loans from China and 
Japan. It's a good deal for the government but according to economic 
law must come to an end, and the end will be messy for the U.S. 
consumer and for world trade.
  Our current account deficit and huge foreign indebtedness is a 
reflection of the world monetary system of fiat money. The longer the 
trade imbalances last, the more difficult the adjustment will be. The 
market will eventually force these adjustments on us.
  Instead of having fluctuating currency exchange rates and the 
inevitable instability that accompanies them, we should be working to 
establish a commodity-backed currency whose value is determined by the 
market. This would provide an objective measurement of the value of 
economic goods and services and thus strengthen the economy by freeing 
it from the negative effects of our unstable monetary policy.
  Instead of promoting global economic government, the United States 
Congress should reform those policies that reduce our manufacturers' 
competitiveness. The taxes and regulations imposed on American 
businesses are damaging economic growth and killing jobs. If we were 
serious about creating jobs, we would be working on an aggressive 
agenda of cutting taxes and repealing needless regulations.
  Congress can also improve America's competitive position by ending 
the practice of forcing American workers to subsidize their foreign 
competitors through organizations such as the Export-Import Bank and 
the International Monetary Fund.
  In conclusion, Mr. Speaker, I remind my colleagues that stability in 
currencies is something we should seek, not something we should 
condemn. The bill before us today will not solve our problems. In fact, 
by refusing to address the economic stability created by fiat currency 
and instead embracing protectionism, it will further weaken the 
American economy.
  Ms. KAPTUR. Mr. Speaker, I believe in free and fair trade among free 
peoples conducted under a rule of law. Our nation boasts the most open 
markets in the world. But not all the world's markets are open house; 
consequently, since 1975 our nation has amassed an enormous trade 
deficit that will top \1/2\ billion dollars this year.
  This trade gap has resulted in:
  35 years of outsourced jobs by the millions to penny wage 
environments.
  35 years of imports dwarfing our exports.
  35 years of buying from countries who will not buy as much from us.
  35 years of trying to penetrate the markets of countries who contort 
the trade and currency rules in their favor, not ours.
  As our nation climbs out of its deepest recession since the 1930s, we 
must rebalance our trade policies and take action to dig us out of this 
deep hole.
  Take the case of China. The massive hemorrhage of U.S. jobs and 
wealth to China is staggering--in 1990 America's trade deficit with 
China was $10.4 billion, and by 2000 it was up to $83.8 billion. As of 
July of this year we are already $145.4 billion in the red to Communist 
China. These deficits mean lost jobs in America, a shrinking middle 
class as production and wealth get shifted offshore.
  The evidence is all around us: Americans working harder each year, 
plants closing down despite increasing worker productivity. Now 
people's health and retirement benefits are cut, or they face 
unemployment, as their jobs are outsourced or destroyed.
  This is not a recipe for a healthy economy nor a strong nation.
  How did this happen?
  The Chinese are gaining a mercantilist advantage in their economic 
practices, which some experts call ``market Leninism.'' They manipulate 
trade through several devices, the most potent of which is currency 
manipulation.
  We must take the necessary steps to create a level playing field for 
American workers and companies by holding China accountable for unfair 
devaluation by 40 percent or more of its currency.
  By making the Yuan cheaper than it should be, their goods are 40 
percent cheaper here and in global markets than American-made products, 
simply because of that government's actions.
  China manipulates its currency by making massive purchases of 
dollars, Euros, and Yen in the global exchange markets, intervening 
with tens of billions of purchases of other currencies weekly.
  The result: the U.S. GDP drops by 1.4 percentage points annually just 
because of China's currency manipulation.
  Jobs are lost, factories closed, and America's competitiveness 
weakens.
  The U.S. has the following four options:
  1. Negotiate with the Chinese to end their currency manipulation. The 
U.S. has been in such negotiations for 6 years. The talks have failed. 
That is why the Currency Reform for Fair Trade Act is so important.
  2. Intervene in the global currency market by selling massive amounts 
of dollars. Intervention would result in massive inflation and if the 
Chinese countered, it would not work.
  3. Seek WTO approval of global sanctions. This would take 3-5 years 
and there is no certainty that Europe or Japan would be supportive.
  4. Impose an Adjustable Currency Tariff (ACT). An ACT would be set at 
exactly the amount that the Yuan is undervalued. Under this proposal, 
the amount of the undervaluation would be set by some neutral 
international financial organization such as the IMF. The value of the 
ACT would be adjusted quarterly. As China changed the value of the 
Yuan, the value of the ACT tariff would be altered correspondingly. 
When China ended their manipulation, the ACT would be zero. This is not 
old-fashioned protectionism, but rather a remedy against such 
protectionism directed towards American-based production and jobs. The 
crisis is huge and we must act now.
  These corrections, including passage of H.R. 2378, if taken 
immediately, could create an estimated 500,000 manufacturing jobs here 
in the United States, helping to put Americans back to work and 
strengthening our economy.
  The Chinese government's currency policy is an impediment to this 
great Republic of ours. It kills American jobs and weakens our nation 
in the global markets. It is time that we take action to fix this 
broken policy and stand up for our nation.
  I urge my colleagues to join me in voting yes for this bill.
  Mr. LEVIN. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. Pursuant to House Resolution 1674, the 
previous question is ordered on the bill, as amended.
  The question is on the engrossment and third reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.


                             Recorded Vote

  Mr. LEVIN. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, this 15-
minute vote on passage of H.R. 2378 will be followed by 5-minute votes 
on motions to suspend the rules with regard to:
  H.R. 6160, by the yeas and nays;
  H.R. 4072, by the yeas and nays;
  H.R. 3421, de novo.
  The vote was taken by electronic device, and there were--ayes 348, 
noes 79, not voting 6, as follows:

                             [Roll No. 554]

                               AYES--348

     Ackerman
     Aderholt
     Adler (NJ)
     Akin
     Altmire
     Andrews
     Arcuri
     Austria
     Baca
     Bachus
     Baird
     Baldwin
     Barrett (SC)
     Barrow
     Bean
     Becerra
     Berkley
     Berman
     Berry
     Biggert
     Bilbray
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Bishop (UT)
     Blumenauer
     Boccieri
     Bonner
     Boozman
     Boren
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Braley (IA)
     Bright
     Brown (SC)
     Brown, Corrine
     Brown-Waite, Ginny
     Burgess
     Burton (IN)
     Butterfield
     Calvert
     Camp
     Cao
     Capito
     Capps

[[Page 17049]]


     Capuano
     Cardoza
     Carnahan
     Carney
     Carson (IN)
     Cassidy
     Castle
     Castor (FL)
     Chandler
     Childers
     Chu
     Clarke
     Clay
     Cleaver
     Clyburn
     Coble
     Coffman (CO)
     Cohen
     Cole
     Connolly (VA)
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Crenshaw
     Critz
     Crowley
     Cummings
     Dahlkemper
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis (KY)
     Davis (TN)
     DeFazio
     DeGette
     DeLauro
     Dent
     Deutch
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Doggett
     Donnelly (IN)
     Doyle
     Driehaus
     Duncan
     Edwards (MD)
     Edwards (TX)
     Ehlers
     Ellison
     Ellsworth
     Emerson
     Engel
     Eshoo
     Etheridge
     Farr
     Fattah
     Filner
     Forbes
     Fortenberry
     Foster
     Foxx
     Frank (MA)
     Fudge
     Gallegly
     Garamendi
     Gerlach
     Giffords
     Gingrey (GA)
     Gonzalez
     Goodlatte
     Gordon (TN)
     Graves (MO)
     Grayson
     Green, Al
     Green, Gene
     Griffith
     Grijalva
     Guthrie
     Gutierrez
     Hall (NY)
     Halvorson
     Hare
     Harman
     Harper
     Hastings (FL)
     Heinrich
     Herseth Sandlin
     Higgins
     Hill
     Himes
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Hoekstra
     Holden
     Holt
     Honda
     Hoyer
     Hunter
     Inglis
     Inslee
     Israel
     Jackson (IL)
     Jackson Lee (TX)
     Johnson (GA)
     Johnson (IL)
     Johnson, E. B.
     Jones
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick (MI)
     Kilroy
     Kind
     Kirk
     Kirkpatrick (AZ)
     Kissell
     Klein (FL)
     Kosmas
     Kratovil
     Kucinich
     Langevin
     Larson (CT)
     LaTourette
     Lee (CA)
     Lee (NY)
     Levin
     Lewis (GA)
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lucas
     Luetkemeyer
     Lujan
     Lungren, Daniel E.
     Lynch
     Maffei
     Maloney
     Manzullo
     Markey (CO)
     Markey (MA)
     Marshall
     Matheson
     Matsui
     McCarthy (NY)
     McCollum
     McCotter
     McDermott
     McGovern
     McHenry
     McIntyre
     McKeon
     McMahon
     McNerney
     Meek (FL)
     Meeks (NY)
     Melancon
     Mica
     Michaud
     Miller (FL)
     Miller (MI)
     Miller (NC)
     Miller, George
     Minnick
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (KS)
     Moran (VA)
     Murphy (CT)
     Murphy (NY)
     Murphy, Patrick
     Murphy, Tim
     Myrick
     Nadler (NY)
     Napolitano
     Neal (MA)
     Nye
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor (AZ)
     Payne
     Pelosi
     Perlmutter
     Perriello
     Peters
     Peterson
     Petri
     Pingree (ME)
     Pitts
     Platts
     Pomeroy
     Posey
     Price (NC)
     Putnam
     Quigley
     Rahall
     Rangel
     Rehberg
     Reyes
     Richardson
     Rodriguez
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rooney
     Ros-Lehtinen
     Roskam
     Ross
     Rothman (NJ)
     Roybal-Allard
     Royce
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schauer
     Schiff
     Schock
     Schrader
     Schwartz
     Scott (GA)
     Scott (VA)
     Sensenbrenner
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Shimkus
     Shuler
     Shuster
     Simpson
     Sires
     Skelton
     Slaughter
     Smith (NJ)
     Smith (WA)
     Space
     Speier
     Spratt
     Stark
     Stearns
     Stupak
     Sutton
     Tanner
     Taylor
     Teague
     Terry
     Thompson (CA)
     Thompson (MS)
     Thompson (PA)
     Tiberi
     Tierney
     Titus
     Tonko
     Towns
     Tsongas
     Turner
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Walz
     Wamp
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch
     Westmoreland
     Whitfield
     Wilson (OH)
     Wilson (SC)
     Wittman
     Wolf
     Woolsey
     Wu
     Yarmuth
     Young (AK)

                                NOES--79

     Alexander
     Bachmann
     Bartlett
     Barton (TX)
     Blackburn
     Boehner
     Bono Mack
     Boustany
     Brady (TX)
     Broun (GA)
     Buchanan
     Campbell
     Cantor
     Carter
     Chaffetz
     Conaway
     Cuellar
     Culberson
     Djou
     Dreier
     Flake
     Fleming
     Franks (AZ)
     Frelinghuysen
     Garrett (NJ)
     Gohmert
     Granger
     Graves (GA)
     Hall (TX)
     Hastings (WA)
     Heller
     Hensarling
     Herger
     Issa
     Jenkins
     Johnson, Sam
     Jordan (OH)
     King (IA)
     King (NY)
     Kingston
     Kline (MN)
     Lamborn
     Lance
     Larsen (WA)
     Latham
     Latta
     Lewis (CA)
     Linder
     Lummis
     Mack
     Marchant
     McCarthy (CA)
     McCaul
     McClintock
     McMorris Rodgers
     Miller, Gary
     Mitchell
     Neugebauer
     Nunes
     Olson
     Paul
     Paulsen
     Pence
     Poe (TX)
     Polis (CO)
     Price (GA)
     Reichert
     Ryan (WI)
     Scalise
     Schmidt
     Sessions
     Shadegg
     Smith (NE)
     Smith (TX)
     Snyder
     Sullivan
     Thornberry
     Tiahrt
     Walden

                             NOT VOTING--6

     Blunt
     Buyer
     Delahunt
     Fallin
     Radanovich
     Young (FL)

                              {time}  1757

  Messrs. POE of Texas, TIAHRT, ISSA, and WALDEN changed their vote 
from ``aye'' to ``no.''
  Messrs. MILLER of Florida, GRIFFITH and ROYCE changed their vote from 
``no'' to ``aye.''
  So the bill was passed.
  The result of the vote was announced as above recorded.
  The title was amended so as to read: ``A bill to amend title VII of 
the Tariff Act of 1930 to clarify that countervailing duties may be 
imposed to address subsidies relating to a fundamentally undervalued 
currency of any foreign country.''.
  A motion to reconsider was laid on the table.

                          ____________________