Schumer cited his frustration about the inability of U.S. officials to persuade China to let the its currency, the yuan, rise in value, which he and other lawmakers argue gives the Communist nation’s businesses and unfair advantage in international trade.
“We are fed up and we are not going to take it anymore,” Schumer told reporters.
Schumer, along with bill co-sponsors Sens. Lindsey Graham (R-S.C.), Sherrod Brown (D-Ohio), Olympia Snowe (R-Maine), Jeff Sessions (R-Ala.), Richard Burr (R-N.C.), Debbie Stabenow (D-Mich.) and Bob Casey (D-Pa.), are aiming to pass the bill in October, despite White House opposition to the measure.
“This legislation will stand-up for American jobs and competitiveness by investigating and penalizing governments that engage in currency manipulation,” said Snowe, who has been working with Brown on similar legislation. “Passing this bill would also send a clear message that Congress and the president have a zero-tolerance policy when it comes to such destructive practices.”
The bill would direct the Commerce Department to seek countervailing duties on certain Chinese goods. Under the measure, the Treasury Department also would be able to take actions against countries with undervalued currency if the problems aren’t corrected within a specific period of time.
Senate Majority Leader Harry Reid (D-Nev.) said last week that he would make passage of the bill a top priority in the Senate this fall.
House Minority Leader Nancy Pelosi (D-Calif.), along with other Democrats, has urged passage of a China currency bill in tandem with three pending free-trade agreements with Colombia, South Korea and Panama.
Last fall, the House passed a similar bill on a bipartisan vote of 348-79, with 99 Republicans supporting the measure.
Some lawmakers have criticized Treasury Secretary Timothy Geithner for not calling out China as a currency manipulator.
The White House isn’t alone in its opposition.
Earlier this week, the U.S.-China Business Council announced that 51 trade associations with broad interests sent a letter to senators opposing efforts to pass a measure. A coalition of business groups said Wednesday that legislation pressuring China to accelerate the value of its currency would likely have the opposite effect, and result in a retaliation against U.S. exports.
“We urge you to oppose currency legislation 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 economic interests,” the letter states.
The groups argue that while China needs a yuan exchange rate that responds to trade flows, the Communist nation should “move steadily” toward a market-determined exchange rate.
On the other side of the coin, the Alliance for American Manufacturing (AAM) sent a letter to the bill’s sponsors endorsing the legislation, arguing that a 28.5 percent appreciation will help create 2.25 million U.S. jobs, increase economic growth by 1.9 percent, lead to a $190.5 billion reduction in the annual trade deficit and produce a $71.4 billion drop in the deficit over 10 years.
“Frankly, we are stunned that any organization would want to tie our hands behind our backs when faced with a mercantilist trade policy of a communist government that inflates dangerous global imbalances,” said AAM Executive Director Scott Paul in the letter.
“The Senate must act because the White House has refused to act. China’s currency is more undervalued today than it was last year, which means American jobs are disappearing every day,” he said.
“China responds to consequences, and this legislation will make a real difference for American workers and businesses.”