(WASHINGTON, D.C.) U.S. Senator Max Baucus today wrote to President Bush following the release of the Treasury Department's report on international economic and exchange rate policies.
Baucus has repeatedly stressed the need for formal negotiations with China to address the undervaluation of the Chinese yuan. Currently, China pegs its currency at a fixed exchange rate that economists estimate is undervalued by anywhere between 15 to 40 percent against the U.S. dollar, which leads to artificially depressing the prices of Chinese exports and hurts the competitiveness of U.S. manufacturers.
In September, Baucus met with Chinese Commerce Minister Lu Fuyuan while at the World Trade Organization ministerial and pressed the need for China to take action to revalue its currency.
