Duval Times

U.S. Senators Marco Rubio (R-FL) and Tammy Baldwin (D-WI) have introduced the China Exchange Rate Transparency Act, aimed at protecting American companies and workers from China's currency manipulation practices.

For years, China has been accused of artificially deflating its currency to boost exports, a strategy that U.S. lawmakers argue harms American businesses and labor. Senator Rubio stated, "We cannot allow the Chinese Communist Party to flood the world with artificially cheap goods. That’s why I’m introducing this crucial bill, which would hold the CCP accountable for its currency manipulation at the IMF. It’s our duty to prioritize American workers."

Senator Baldwin echoed these sentiments: "For too long, China has been cheating the system and it undermines our workers and economy – and it’s time we hold them accountable. I’m proud to introduce this bipartisan bill to level the playing field for American workers and stop China from manipulating its currency."

The proposed legislation mandates several actions:

- The U.S. Representative for the International Monetary Fund (IMF) would be required to use their influence to ensure closer scrutiny of China's currency practices.

- Consideration of China's currency manipulation would be incorporated when determining Special Drawing Rights (SDRs) values and vote shares at the IMF.

- The Treasury Department would need to report quarterly to Congress on whether China meets criteria as a currency manipulator under the 1988 Omnibus Trade and Competitiveness Act.

Companion legislation has also been introduced in the House by Representatives Dan Meuser (R-PA) and Wiley Nickel (D-NC).

For further information on related legislative efforts, see: May 2024: ICYMI: Rubio Supports Raising Tariffs on China.