Coalition Letter to House Ways and Means Committee Expressing Concern with Potential China Legislation

Below please find a letter sent February 7th to all members of the House Ways and Means Committee.

The letter, which contains signatures from 185 companies and associations (including the U.S. Chamber), highlights concerns with the Ways and Means Committee's efforts to draft broad China legislation.

Of particular concern are legislative proposals attempting to address China's currency undervaluation, which could potentially undermine ongoing appreciation. The letter notes that the yuan has appreciated by more than 15% since 2005, and that global and domestic economic factors in China are currently aligned to lead to "further and more rapid" appreciation of the yuan.

In addition, the letter expresses concern with attempts to pass legislation relevant to international monetary policy at a time of economic fragility. The letter notes the need for Congress to act "prudently" at a time of "slowing growth at home and growing instability in world financial markets."

Coalition Letter to House Ways and Means Committee Expressing Concern with Potential China Legislation (PDF) - February 7, 2008