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<p class=MsoNormal><b><font size=4 color=navy face="Trebuchet MS"><span
style='font-size:14.0pt;font-family:"Trebuchet MS";color:navy;font-weight:bold'>Senators
Introduce <st1:country-region w:st="on"><st1:place w:st="on">China</st1:place></st1:country-region>
Currency Manipulation Bill <o:p></o:p></span></font></b></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>By <a
href="http://online.wsj.com/search/term.html?KEYWORDS=COREY+BOLES&bylinesearch=true">COREY
BOLES</a> and <a
href="http://online.wsj.com/search/term.html?KEYWORDS=SHAYNDI+RAICE&bylinesearch=true">SHAYNDI
RAICE</a> <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>http://online.wsj.com/article/SB10001424052748704688604575126021843868934.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsFifth<o:p></o:p></span></font></p>
<p><st1:State w:st="on"><font size=2 color=black face="Trebuchet MS"><span
lang=EN style='font-size:10.0pt;font-family:"Trebuchet MS";color:black'>WASHINGTON</span></font></st1:State><font
size=2 color=black face="Trebuchet MS"><span lang=EN style='font-size:10.0pt;
font-family:"Trebuchet MS";color:black'>—A bipartisan group of <st1:country-region
w:st="on">U.S.</st1:country-region> senators on Tuesday introduced legislation
aimed at forcing the Obama administration to take action against <st1:place
w:st="on"><st1:country-region w:st="on">China</st1:country-region></st1:place>
over its currency policy, reflecting growing anger on Capitol Hill over the
issue.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face="Trebuchet MS"><span lang=EN
style='font-size:10.0pt;font-family:"Trebuchet MS";color:black'><img border=0
width=124 height=211 id="_x0000_i1033" src="cid:image001.gif@01CAC5C3.32F804D0"
alt="[AIGANGER]"><o:p></o:p></span></font></p>
<p class=targetcaption><font size=2 color=black face="Trebuchet MS"><span
lang=EN style='font-size:10.0pt;font-family:"Trebuchet MS";color:black'>Charles
Schumer<o:p></o:p></span></font></p>
<p><font size=2 color=black face="Trebuchet MS"><span lang=EN style='font-size:
10.0pt;font-family:"Trebuchet MS";color:black'>The bill, which would require
the <st1:country-region w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region>
to impose tariffs and other penalties on countries that failed to address
misaligned currencies, is the latest action by lawmakers targeting the yuan,
which many feel is undervalued against the dollar. Critics say <st1:City w:st="on"><st1:place
w:st="on">Beijing</st1:place></st1:City> has kept its currency artificially
low to make its exports cheaper, giving them an advantage in the global market.<o:p></o:p></span></font></p>
<p><font size=2 color=black face="Trebuchet MS"><span lang=EN style='font-size:
10.0pt;font-family:"Trebuchet MS";color:black'>On Monday, the <st1:Street
w:st="on"><st1:address w:st="on">House Ways</st1:address></st1:Street> and
Means Committee announced a hearing on <st1:country-region w:st="on"><st1:place
w:st="on">China</st1:place></st1:country-region>'s currency policy for March
24.<o:p></o:p></span></font></p>
<p><b><font size=2 color=black face="Trebuchet MS"><span lang=EN
style='font-size:10.0pt;font-family:"Trebuchet MS";color:black;font-weight:
bold'>More than 130 congressmen from both parties signed a letter urging
Treasury Secretary Timothy Geithner and Commerce Secretary Gary Locke to take
action on the issue. <o:p></o:p></span></font></b></p>
<p><font size=2 color=black face="Trebuchet MS"><span lang=EN style='font-size:
10.0pt;font-family:"Trebuchet MS";color:black'>Prospects for the Senate bill,
versions of which have been introduced almost every year since 2005, remain
unclear. Senate Majority Leader Harry Reid (D., Nev.) said it would be
appropriate for the chairmen of the banking and finance committees to consider
the issue. Sen. Max Baucus (D., Mont.), the finance panel chairman, said he was
committed to working with the administration and Congress to "ensure we
keep <st1:country-region w:st="on"><st1:place w:st="on">China</st1:place></st1:country-region>
accountable and keep American businesses competitive." <o:p></o:p></span></font></p>
<p><font size=2 color=black face="Trebuchet MS"><span lang=EN style='font-size:
10.0pt;font-family:"Trebuchet MS";color:black'>A Treasury Department official
said Tuesday that the agency was reviewing the legislation, which was
introduced by Sens. Charles Schumer (D., N.Y.), Debbie Stabenow (D., Mich.),
Sherrod Brown (D., Ohio), Lindsey Graham (R., S.C.) and Sam Brownback (R.,
Kan.). <o:p></o:p></span></font></p>
<p><font size=2 color=black face="Trebuchet MS"><span lang=EN style='font-size:
10.0pt;font-family:"Trebuchet MS";color:black'>"We too have serious
concerns about <st1:country-region w:st="on"><st1:place w:st="on">China</st1:place></st1:country-region>'s
exchange- rate policy," the official said. "The rebound of <st1:country-region
w:st="on">China</st1:country-region>'s economic growth and exports and their continued
large-scale [foreign-exchange] reserve accumulation indicate clearly that <st1:country-region
w:st="on"><st1:place w:st="on">China</st1:place></st1:country-region> should
resume appreciation" of the yuan. <o:p></o:p></span></font></p>
<p><st1:country-region w:st="on"><font size=2 color=black face="Trebuchet MS"><span
lang=EN style='font-size:10.0pt;font-family:"Trebuchet MS";color:black'>China</span></font></st1:country-region><font
size=2 color=black face="Trebuchet MS"><span lang=EN style='font-size:10.0pt;
font-family:"Trebuchet MS";color:black'> has, in response, accused the <st1:country-region
w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region> of trying
to weaken the dollar to increase its exports. Last weekend, Chinese Premier Wen
Jiabao denied that the government was exerting downward pressure on the yuan.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face="Trebuchet MS"><span lang=EN
style='font-size:10.0pt;font-family:"Trebuchet MS";color:black'><img border=0
width=124 height=211 id="_x0000_i1034" src="cid:image002.gif@01CAC5C3.32F804D0"
alt="[ltmon]"><o:p></o:p></span></font></p>
<p class=targetcaption><font size=2 color=black face="Trebuchet MS"><span
lang=EN style='font-size:10.0pt;font-family:"Trebuchet MS";color:black'>Lindsey
Graham<o:p></o:p></span></font></p>
<p><b><font size=2 color=black face="Trebuchet MS"><span lang=EN
style='font-size:10.0pt;font-family:"Trebuchet MS";color:black;font-weight:
bold'>Treasury must decide by April 15 whether to label <st1:country-region
w:st="on"><st1:place w:st="on">China</st1:place></st1:country-region> a
currency manipulator in its biannual report to Congress on the currency
policies of its trading partners.</span></font></b><font size=2 color=black
face="Trebuchet MS"><span lang=EN style='font-size:10.0pt;font-family:"Trebuchet MS";
color:black'> Such a designation wouldn't result in the imposition of any
penalties on the offending country, but could further irritate already tense
U.S.-China relations and goad Congress to take action.<o:p></o:p></span></font></p>
<p><font size=2 color=black face="Trebuchet MS"><span lang=EN style='font-size:
10.0pt;font-family:"Trebuchet MS";color:black'>Although the administration last
year declined to label <st1:country-region w:st="on"><st1:place w:st="on">China</st1:place></st1:country-region>
a manipulator and Congress didn't pass any measures addressing the issue, some
lawmakers and industry executives said there was more momentum for Congress to
take action this year. With midterm elections in November, lawmakers are under
pressure to address voters' discontent with the country's continued high
unemployment rate. <o:p></o:p></span></font></p>
<p><font size=2 color=black face="Trebuchet MS"><span lang=EN style='font-size:
10.0pt;font-family:"Trebuchet MS";color:black'>Currently, the administration
has discretion on how to respond to countries seen to be engaging in currency
manipulation. The Senate bill would apply an "objective test" that
would force the administration to take increasingly tough action if a country
failed to address the problem. These include lodging a complaint with the World
Trade Organization, blocking the award of any federal contracts to the
offending country's companies, and applying countervailing duties.<o:p></o:p></span></font></p>
<p><strong><font size=1 color=black face=Arial><span lang=EN style='font-size:
7.5pt;font-family:Arial;color:black'>Write to </span></font></strong><font
size=1 color=black face=Arial><span lang=EN style='font-size:7.5pt;font-family:
Arial;color:black'>Corey Boles at <a href="mailto:corey.boles@dowjones.com">corey.boles@dowjones.com</a>
<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>--------------------------------------------------<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>Andrew Gussert<br>
Director, Citizens Trade Campaign<br>
<st1:Street w:st="on"><st1:address w:st="on">1150 17th Street N.W.,
Suite 300</st1:address></st1:Street><br>
<st1:place w:st="on"><st1:City w:st="on">Washington</st1:City>, <st1:State
w:st="on">D.C.</st1:State></st1:place> 20036</span></font><font
color=navy><span style='color:navy'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=navy face="Times New Roman"><span
style='font-size:12.0pt;color:navy'> <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>Cell#:
202.494.8826<br>
Fax#: 202.293.5308<br>
<a href="http://www.citizenstrade.org">www.citizenstrade.org</a></span></font><font
color=navy><span style='color:navy'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>facebook.com/gussert<br>
twitter.com/agussert</span></font><font color=navy><span style='color:navy'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=navy face="Times New Roman"><span
style='font-size:12.0pt;color:navy'> <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=gray face="Times New Roman"><span
style='font-size:12.0pt;color:gray'>To receive regular trade updates, </span></font><font
color=navy><span style='color:navy'><a
href="http://www.citizenstrade.org/mailman/listinfo/ctcfield"><font color=gray><span
style='color:gray'>click here.</span></font></a></span><o:p></o:p></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
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