–Acting Chief of Ways & Means Panel Steps Up Criticism of China
–China Has Made ‘No Progress’ On Currency For Months
–Coming G-20 Is An ‘Important Juncture’ On Currency Reform
–Key Republican Rep. Camp Says He Prefers ‘Multilateral’ Approach
–Rep. Camp: China ‘Not Acting in Good Faith’ on Key Economic Issues

By John Shaw

WASHINGTON (MNI) – Rep. Sander Levin, the acting chairman of the
House Ways and Means Committee, Wednesday escalated his criticism of
China’s currency policies, saying that China has made “no progress” on
reforming its currency since the panel’s hearing on the matter in April.

In an opening statement before a hearing on China’s trade and
industrial policies, Levin said that congressional patience on currency
reform in China is wearing very thin.

He said the coming G-20 meeting in Toronto will be an “important
juncture” and that concrete changes on currency reform must be seen
soon.

If China doesn’t begin reforming its currency soon, “the Congress
will act,” Levin said.

Levin did not specify what actions might be forthcoming.

Rep. Dave Camp, the top Republican on the Ways and Means panel,
also offered tough words on China.

He said there is a broad consensus in Congress for a simple
proposition: “China is not acting in good faith and is aggressively
engaged in a series of troubling and downright protectionist policies
that put our economic relationship at risk,” Camp said.

Camp said that he wonders if the administration is being tough
enough on China on a range of issues from intellectual property to non
tariff barriers.

He said that while the administration must be more forceful in its
bilateral dealings with China on a range of economic issues, it must
enlist international support.

“My experience tells me that unified multimeter pressure is not
only the most effective way but sometimes the only way to address
underlying problems with China,” he said.

Congressional criticisms of China have been mounting this summer, a
fact that Treasury secretary Tim Geithner does not appear to be
discouraging

The Treasury secretary may believe that a significant ratcheting up
of congressional criticism of China’s currency policies will get the
attention of Chinese leaders in a way his private negotiations haven’t.

A group of lawmakers is now pushing a bill that would compel
Treasury to report to Congress biannually on what nations have
“fundamentally misaligned currencies” with the U.S.

If those countries, after having been identified by Treasury, do
not address this issue within 90 days, the administration would be
required to take action at the International Monetary Fund and end
federal procurement from these nations.

After 360 days, the U.S. Trade Representative would be required to
request dispute settlement proceedings at the World Trade Organization.

The bill would also make it easier for American firms to request
import duties from the Commerce Department.

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

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