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    36 American Chambers Of Commerce Once Again Sent A Letter To Congress &Nbsp; They Oppose The Passage Of The Renminbi Bill.

    2010/9/17 9:50:00 40

    US Dollar

    In the US House of Representatives RMB When the exchange rate issue was heard, the 36 chamber of Commerce of the United States jointly sent a letter to the house of Representatives on the 14 day. They firmly opposed the adoption of legislation to force the renminbi to appreciate and urged members of Congress not to pass a "currency bill" designed to impose punitive tariffs on some Chinese products. In June 30th this year, the chamber of Commerce issued similar letters to the US Senate.


    36 families Commerce Chamber In their letter, the organization said that their strong opposition was based on a number of reasons. First, there is no recognized way to determine what a country's exchange rate will be when it is not determined by the market. Therefore, it is certain that the appropriate value of the renminbi value will be subjective, unilateral, and potentially politicized; secondly, the bill may violate the relevant rules of the world trade organization.


    These chambers of Commerce say they agree that China needs a better exchange rate to reflect global trade flows, but firmly disagree with the goal of legislations against anti-dumping or countervailing duties. They said: "if such a threat is taken, it is impossible for China to continue to carry out a more rapid exchange rate reform."


    The letter also pointed out that the United States should not destroy or violate international rules to help its own economic prosperity. They also believe that if Congress passes the bill, China may successfully challenge these measures in the US at WTO, when the international community will shift its focus from China's trade policy to us trade policy, and these measures may also threaten the export of us products to this fastest growing overseas market.


    The 36 chambers of Commerce include the National Committee of the US China trade, the American Chamber of Commerce, the National Retail Federation of the United States, the US trade emergency committee, and so on, covering many fields such as medical, insurance, meat, electronics, finance, securities, textiles, clothing, sporting goods and so on.


    Beginning in September 15th, the US House of Representatives Preparatory Committee will launch a two day hearing on the issue of RMB exchange rate. Lawmakers may push a currency bill in the near future. If the bill is passed by Congress, the US Department of commerce can be authorized to do so from China. Importer Anti dumping and countervailing duties are imposed to offset the so-called "undervalued" effect of the renminbi.


    On the issue of the RMB exchange rate, Chinese Foreign Ministry spokesman Jiang Yu said at a press conference last week that the direction of China's further reform of the RMB exchange rate formation mechanism will not change. However, China firmly opposes politicizing economic and trade issues, and the reform of the RMB exchange rate formation mechanism can not be pushed forward under external pressure.

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