Chamber Welcomes China's Decision on Currency

WASHINGTON, D.C.—The United States Chamber of Commerce welcomed the decision by China's financial authorities to end the yuan's peg to the dollar and allow it to fluctuate vis-à-vis a basket of currencies.

"Today's action offers the first tangible evidence that the leadership is supporting its words with concrete action," said Thomas J. Donohue, Chamber President and CEO. "The Chinese leadership has long-stated that adopting greater exchange rate flexibility is in its own interest.

The Chamber has publicly called for China to accelerate its transition to a flexible currency regime. The U.S. Treasury Department, the U.S. Congress, and the G-8 nations have similarly urged China to make this transition.

"China's decision—when followed by subsequent, but gradual actions that move the yuan to its market value—will benefit its economic development goals, and contribute to the stability of the international financial system." Donohue said. "Continued movement toward a fully flexible exchange rate will also remove a major barrier to stronger U.S.-China commercial and economic relations."

The U.S. Chamber of Commerce opposes any legislation that would impose unauthorized tariffs under the rules of the World Trade Organization on China's exports to the United States.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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