NAM Task Force Discusses China Trade Relations

Washington D.C., May 9, 2007--The National Association of Manufacturers’ U.S.-China Business Relations Task Force met with senior administration officials including Treasury Secretary Henry Paulson, Commerce Secretary Carlos Gutierrez and U.S. Trade Representative Susan Schwab.  “These discussions are more important than ever, given the new Congress,” said NAM President John Engler following the meetings.  

“Despite strong efforts from the Administration on a variety of issues, the U.S.-China trade deficit continues to widen,” said Michael E. Campbell, President and CEO of Arch Chemicals and chairman of the Task Force.  “We voiced our concerns on how to best deal with this issue, notably pressing for faster appreciation of the yuan in this month’s Strategic Economic Dialogue and further enforcement of international agreements.

“The necessary appreciation of China’s currency has not occurred,” he said.  “The degree of the yuan’s undervaluation is evidenced by China’s buildup of foreign currency reserves, which recently have now grown to $50 billion per month, for a total of $1.2 trillion.

“Secretary Paulson understands that patience is growing thin not just on Capitol Hill but on the shop floors of American manufacturing plants,” he said.  “We told him we recognize that Congress cannot legislate Chinese exchange rates but we can legislate our own taxes to begin leveling the playing field.

“The Administration has taken enormous strides to accelerate the pace of enforcement over the past few months,” Campbell said.  “The Commerce Department’s announcement of the application of countervailing duties to Chinese subsidies is a positive move.  We complimented Secretary Gutierrez for making this strong anti-protectionist move to address China’s illegal subsides.

“Likewise, Ambassador Schwab should be commended for filing three cases in the WTO,” he said.  “She understands the need to level the playing field, notably in enforcing intellectual property rules and eliminating subsidies.”