WASHINGTON, D.C. - Ways and Means Committee Chairman Sander M. Levin (D-MI) issued the following statement today on China’s decision to increase the flexibility of its exchange rate:
“I welcome China's decision to allow flexibility in the renminbi exchange rate. This is a positive first step, but it remains to be seen whether this move will be more symbolic than significant. The significance of this policy will depend on how much the Government of China allows the renminbi to appreciate over time. We have seen actions like this before and it is clear that China did not allow enough appreciation the last time it adopted a policy like this one, from 2005-2008. If China takes that same approach again, the United States will still need to take action.
“President Obama and his Administration deserve credit for insisting that action be taken to address global trade imbalances. Much work remains to be done to address those imbalances, and Congress will work with the Administration to achieve that important objective."
