Baldwin, Rubio Introduce Bipartisan Bill to Protect American Workers and Business from China

WASHINGTON, D.C. – Today, U.S. Senators Tammy Baldwin (D-WI) and Marco Rubio (R-FL) introduced bipartisan legislation to protect workers and companies from currency manipulation by the People’s Republic of China. The China Exchange Rate Transparency Act would combat China’s manipulation of its currency to boost their exports and undercut Made in America goods.

“For too long, China has been cheating the system and it undermines our workers and economy – and it’s time we hold them accountable,” said Senator Baldwin. “I’m proud to introduce this bipartisan bill to level the playing field for American workers and stop China from manipulating its currency.”

“We cannot allow the Chinese Communist Party to flood the world with artificially cheap goods,” said Senator Rubio. “That’s why I’m introducing this crucial bill, which would hold the CCP accountable for its currency manipulation at the IMF. It’s our duty to prioritize American workers.”

In 2019, the United States labeled China a currency manipulator after years of keeping the value of its currency artificially low. When a country deflates its currency, their domestic goods become relatively cheaper compared to foreign competitors, increasing their exports at the expense of their trading partners. The China Exchange Rate Transparency Act would require the United States to scrutinize China’s currency manipulation at the International Money Fund (IMF) and require the U.S. Treasury to submit a quarterly report to Congress on whether China is engaging in currency manipulation.

Specifically, this bill would:

• Require the U.S. Representative for the IMF to use the voice and vote of the U.S. to require the IMF to more closely scrutinize currency manipulation by China
• Incorporate consideration of China’s currency manipulation when determining the value of Special Drawing Rights (SDRs) and in determining vote shares at the IMF; and
• Require the Treasury Department to quarterly report to Congress on whether or not China meets the criteria to be designated as a currency manipulator, according to the 1988 Omnibus Trade and Competitiveness Act.

Full text of the legislation is available here.

###