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Issues
People's Republic of China
People's Republic of China
Related Issue(s):
Manufacturing,
International Relations,
Republic of China (Taiwan),
Trade
Congressman Souder's Position
The rise of the People’s Republic of China (PRC) as an economic power has shocked the American economy. The PRC’s ability to send cheap goods to the United States has been aided by many factors, including the PRC’s manipulation of its currency.
By actively controlling the exchange rate of its currency (the yuan) against the American dollar, the Chinese are able to make their goods cheaper and our goods more expensive. This kind of tight control of the yuan is cheating. Over the years, the Chinese government has revalued its currency by only a very small amount.
I believe the Chinese must allow their currency to float freely, just like the US and other world currencies. If they continue to cheat the system and unfairly price their exports, we must fight back and use every tool available to accomplish a balancing of trade. The best way to force a true evaluation is to impose duties and tariffs equal to the amount that the yuan is undervalued. In some reports, this amount is as much as 40 percent.
The People’s Republic of China is the world’s largest communist state. Although the regime has largely abandoned true communist economics, it continues to maintain the repressive and brutal political and social structure associated with communism. Moreover, the country’s thinly veneered capitalism continues to be largely directed by the government, dominated by corrupt officials, and largely detached from most citizens.
I have long opposed China because of its economic and political policies, including its tremendously awful human rights record. China’s refusal to reform itself at all levels continues to be the greatest reason why I opposed Most Favored Nation trading status for the PRC. The potential to make money in China is not reason enough to turn a blind-eye to their disregard for political and personal freedom or their economic manipulation and theft. It's also why I believe that the United States should boycott the Summer 2008 Olympics in Beijing.
As a communist state, China maintains overall control of the economy, including private property, central planning, and industry subsidization. Moreover, China maintains tight control over information, including the Internet, television, and print media. The communist regime, which maintains an official policy of atheism, persecutes religious believers who do not submit to official government religious organizations. Those who challenge Chinese policies are frequently arrested and sent to prisons and labor camps without the benefit of a fair trial. Credible accounts of these prisons and camps paint a picture of cruelty and barbarism inconsistent with American values. In some cases, goods produced by political and religious prisoners have made their way to the United States.
In addition to the danger posed to its own people, the government of the People’s Republic of China poses a danger to the entire world because of its sales of military equipment and missile technologies to such rogue regimes as Iran, Burma, and North Korea. These policies pose a threat not only to the people of those countries but also to American lives and interests throughout the world.
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