–House Tax Panel Chief Panel Says Broader Approach To China Needed
–Rep. Camp: Must Address ‘Full Set of Economic Issues’ With China
–Tsy’s Brainard: Admin Supports ‘Goal’ Of Senate Currency Bill
–Tsy’s Brainard: Tsy To Release FX Report In Mid-November

By John Shaw

WASHINGTON (MNI) – House Ways and Means Committee Chairman Dave
Camp Tuesday said that Congress would be misguided to view passage of
currency legislation directed at China as a “silver bullet” that would
resolve a raft of economic disputes between the U.S. and China.

At a Ways and Means hearing on U.S.-China issues, Camp said
policymakers should focus on “the full set of economic issues we face in
dealing with China, including currency.”

Camp said that China should sustain “meaningful RMB appreciation”
as part of a broader strategy to “rebalance its economy away from
export-led growth.”

Camp said China’s currency is a “significant problem,” but this
should not be the exclusive focus of Congress.

Joint Economic Committee Chairman Kevin Brady said he believes it’s
a “mistake to have a currency-only focus,” but rather the U.S. should
take a broader approach to its economic relationship with China.

Most lawmakers from both parties pounded China for its currency
policies and blasted the administration for not doing more to induce
change in China’s currency policies.

Rep. Sander Levin, the ranking Democrat on the panel, urged the
administration to support strong currency legislation, adding that it’s
necessary to “insist on action (on currency appreciation) because it
matters.”

Lael Brainard, Treasury’s undersecretary for international affairs,
told the panel that China is making progress in its currency practices,
but is still not moving quickly enough.

“We are working very hard to push forward on the exchange rate
front,” she said.

“We are doing what we can,” she said, but added “we are as
frustrated as members here are.”

Brainard was repeatedly asked to clarify the administration’s
stance on the Senate passed currency bill. Hewing to a carefully crafted
script, she said repeatedly that the administration supports the “goal”
of the bill, but has “concerns” that some parts of the bill are “not
consistent with our international obligations.”

She declined to outline what those specific concerns are.

Brainard said the administration will release its semi-annual
currency and international economic report in mid-November. She said it
is being delayed from its October 15 deadline because of a “series of
very important summits” between American and Chinese officials in the
coming weeks that might allow for progress on currency issues.

** Market News International Washington Bureau: (202) 371-2121 **

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