Members of US Congressional Steel Caucus appealed to President Barack Obama to ask his Chinese counterpart Hu Jintao not to dump steel products in the American market.
"When you meet with Chinese President Hu Jintao, we urge you to make clear on behalf of the American steel industry that China's illegal trade practices will no longer be tolerated," said Tim Murphy and Peter Visclosky, Chairman and Vice Chairman,of the Congressional Steel Caucus, said in a letter to Obama.
"As members of the Congressional Steel Caucus, we ask that your discussions include China's continued violations of trade law -- such as dumping of steel pipe and plate, renewable energy product subsidies, and currency manipulation —- because they are decimating the ability of the American steel industry to compete on a level playing field," the letter stated.
The Congressional Steel Caucus estimated that China is artificially devaluing its currency Yuan by as much as 40 per cent, giving its own exports a government subsidy and in effect taxing American-made imports.
This policy costs the US over 2.5 million manufacturing jobs and a staggering trade deficit of as much as $283 billion.
"Last June, China announced they would allow their currency to appreciate, but since then they have restricted the Yuan's growth to a paltry and unacceptable 3.1 per cent," Congressional Steel Caucus said.
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The Congressional Steel Caucus hoped that Obama will emphasise other areas where China has violated international trade law.
Chinese government has repeatedly unfairly and illegally dumped and subsidised steel plate, pipe, and other products, causing US steel producers, workers, and other industries to petition the International Trade Commission for relief, it said.
"China’s state-owned Anshan Iron and Steel Group made a troubling investment in US steel plants that we continue to believe will give China a beachhead to exploit the American steel market, lead to a loss of American jobs, and jeopardize our national security."
The letter stated "China must know once and for all that American patience for its unfair and illegal trade practices and its exploitative and anticompetitive policies, has run out. Beijing’s intransigence is placing our trading relationship on ever-perilous ground."
Steel made in US supports 1.2 million jobs and adds $350 billion to its economy.