A group of influential Democratic Senators today asked US President Donald Trump to raise several trade issues, including currency manipulation, with his Chinese counterpart Xi Jinping during their meeting tomorrow.
Reminding Trump of his campaign promise that he would be tough on China "on Day-one", the dozen odd Senators ina letter rued that the US President has not taken any meaningful actions on the Chinese trade "cheating".
For workers with the deck stacked against them due to China's "cheating" on trade, the Senators called on Trump to deliver his promise.
Trump will host his Chinese counterpart at his Mar-a-Lago residence in Florida from April 6 to 7.
The Senators urged Trump to raise several trade issues of regional and national importance, including overcapacity, China market economy status, currency manipulation and industrial espionage during his meeting.
"Since joining the World Trade Organisation in 2001, China has consistently failed to comply with its international trade obligations. And workers across the US, including workers in our home states, have paid the price," the Senators wrote.
"You pledged to support American workers and go after trade cheaters, and we hope you take this opportunity with your first one-on-one meeting with Chinese President Xi to keep this promise to American workers and strongly affirm these priorities," said the letter.
Signatories to the letter included Bob Casey, Charles Schumer, Sherrod Brown, Debbie Stabenow, Amy Klobucher, Al Franken, Tammy Baldwin, Joe Donnelly, Gary Fetes, Jeffrey Merkley, Kirsten Gillibrand and Joe Manchin.
Observing that China's excess aluminum and steel production capacity is causing global market distortions and has forced the idling of numerous steel facilities and the layoffs of thousands of US workers, the letter requested Trump to urge Xi to live up to China's previous commitments to reduce its net aluminum and steel production capacity or face strong trade enforcement action by the US against Chinese imports in those industries.
Ruing that despite agreeing to commitments in its WTO accession protocol to transition to a market economy, China remains a non-market economy, the Senators urged Trump to reaffirm the position of the US that China is a non-market economy.
"We also urge you to express your commitment to aggressively defend US treatment of China as a non-market economy before the WTO," the letter said.
"Currency manipulation continues to be a significant concern to manufacturers across the country," the Senators alleged.
The Chinese government has a long history of undervaluing its currency to boost exports, it said.
"When this occurs, American manufacturers pay the price.
China continues to intervene in its exchange rate.
Data published on March 7, 2017 by the People's Bank of China, show foreign exchange reserves rose by USD 6.92 billion, during February, this is counter to expectations that reserves would fall by almost USD 3 billion," it said.
"We urge you to make clear to President Xi that the US will hold China accountable when they are found to manipulate currency to the detriment of American manufacturers," the Senators said as it also urged Trump to raise the issue of industrial espionage.
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