US Congressmen Fry The Issue Of Exchange Rate &Nbsp; Threaten To Launch Trade War With China.

The US House of Representatives fundraising committee recently held the US China economic relationship. hearing The issue of RMB exchange rate has once again become the focus of debate. Some members even threatened to launch a "trade war" against China. At the same time, there is no lack of objection within and outside the US government. exchange rate Problem playing political games and damaging Sino US relations reason Voice.

Since the US Senate passed the "currency exchange rate supervision reform bill" in 2011 this year, the economic topic of RMB exchange rate has been pushed to the cusp of the US political game again 11. The Democratic Party has always been the main promoter of legislation on the RMB issue within the Congress to punish China. Passed the current exchange rate in the Senate bill After that, Democratic congressmen actively operated in the house of Representatives, seeking a vote.

The fair trade monetary reform act of 2011, sponsored by the former chairman of the house fundraising committee and Sander Levin, a senior representative of the Democratic Party, has now been co signed by 230 representatives including 168 Democratic members. The bill is actually a copy of the renminbi exchange rate act passed by the house of Representatives controlled by the Democratic Party in 2010. At the same time, the Republican conservatives were unwilling to show their weakness. In order to win the presidential election in 2012, the Republican candidates are also "scrambling" to show their tough stance. At present, the former Massachusetts governor, Romney, issued a tough speech, claiming that if he were elected president, he would list China as a "currency manipulator" on the first day of his presidency.

Against this background, the Congressional house raising Committee's first hearing on the US China economic relationship this year has become a "fight club" against China's manipulation of the exchange rate. In the speech, Levin, the chief Democrat of the fundraising committee, accused the Bush administration and the current Republican leadership of the house of connivance of connivance of China's manipulation of the exchange rate, and asked the house of representatives to immediately vote on the RMB exchange rate bill. Charles Rangel, a Democrat from New York, even threatened: "in order to correct China's trade distorting policy, the United States should not hesitate to launch a trade war with China." Mcdermott, another Democratic congressman, also declared that the United States had suffered heavy losses because of the RMB issue, and the United States should not be afraid of it. trade war " {page_break}

For some congressmen and politicians irresponsible remarks, a number of insight in the United States also issued a rational voice. Camp, chairman of the house raising Committee, who presided over the hearing that day, pointed out that some members of congress only focus on the issue of RMB exchange rate through legislation, as if this is the panacea for solving the problem, but they have ignored the broader issues in Sino US economic relations. Overgeneralization It's useless.

Brainard, Vice Minister of international affairs at the US Treasury Department, said at the hearing that the Obama administration's economic and trade policy toward China has made significant progress in many areas. Brainard said that since June 2010, taking into account the inflation factor, the yuan has appreciated more than 10% against the US dollar; in the past 5 years, the renminbi has appreciated practically 40% against the US dollar. In bilateral trade, the US export to China has increased by 61% since 2009, almost two times the US's growth in exports to the rest of the world. Brainard pointed out that it needs to be clear that the appreciation of the RMB itself will not solve the problem of trade deficit and employment in the United States. Some provisions in the Congressional Renminbi act are "really worrying whether it is in line with our international obligations". In response to the challenge of Sino US economic relations, it is necessary to strengthen the international system of trade and financial governance rather than abandon it.

Marantis, deputy representative of the US trade, pointed out that since China's accession to the world trade organization, the US export to China has increased faster than any other major economy. China has now become the third largest export market in the US after Canada and Mexico. In 2010, the total export volume of US goods and services to China reached US $113 billion.

According to the estimates of the US Department of Commerce, the export of US $1 billion will create 6000 jobs for the United States. The sustained and rapid growth of China's economy will undoubtedly bring more employment opportunities to the United States. President Obama has said that the success of a country does not need to be at the expense of other countries, and they can achieve a win-win situation. Marantis stressed that the premise for the United States and China to achieve a win-win situation is a high degree of common understanding and cooperation between the two sides in the opportunities and challenges of bilateral relations.

John Bona, the speaker of the house of Representatives, once again reiterated his opposition to Congress's adoption of the renminbi exchange rate bill, emphasizing that it would be "a very dangerous policy". Boehner pointed out that President Obama should play a leading role in the issue of RMB exchange rate.

Paulson, the former US Treasury Secretary, said in Washington recently that it is not advisable to adopt legislation to threaten other countries. He said that the United States and China are important engines of the world economy. The exchange rate issue is a sensitive topic of political and trade, but it is not the biggest cause of the huge trade deficit between the United States and China. He stressed that the two countries should continue to seek a strategy of mutual benefit and win-win and enlarge the economic cake, which is conducive to the two peoples and the world economy.