House leads way in sending a message to China on fair trade

The U.S. House of Representatives spoke with an amazingly clear voice last week in passing the Ryan-Murphy Currency Reform for Fair Trade Act of 2009. Now it falls to the Senate to show the same guts in sending an unambiguous message to China that trading “partners” aren’t supposed to cheat.

H.R. 2378 was introduced by U.S. Reps. Tim Ryan of Niles, D-17th, and Tim Murphy of suburban Pittsburgh, R-18th, Pa. The bill would allow the U.S. to crack down on Chinese currency manipulation, which has the effect of allowing China to undercut U.S.-made goods in the United States, while at the same time increasing the cost of potential U.S. exports to China. China’s undervalued currency is a strong contributing factor to the unbalanced trade between the U.S. and China. Americans buy $3 worth of China’s exports for every $1 the Chinese pay for American goods and services.

Passage of the bill by a 348-79 vote was described as bipartisan, and, indeed, 99 Republicans joined 249 Democrats in voting for it. Among those 99 were four Ohio Republicans, including Steven C. LaTourette of Geauga County, R-14th. But opposition to the bill was clearly one-sided. Five Democrats voted against it, while 74 Republicans followed their minority leader, Rep. John Boehner of the Dayton area, in opposing it.

Sending a message

That’s unfortunate, because it undercuts a serious message from the United States Congress to China that trade policies that cost Americans their jobs will be taken seriously by both parties.

In addition to currency manipulation. China allows wholesale theft of intellectual property and uses tariffs to limit imports of manufactured goods, minerals and agricultural products — all while demanding unfettered access to foreign markets.

Those who warn that U.S. action could spark a trade war ignore evidence that China has been pursing an undeclared war and is demonstrably winning. All those underpriced Chinese exports represent job gains for China and job losses for the U.S.

The House has spoken, telling China that the American people will no longer be willing victims of China’s uneven trade policies. When the Senate returns from its recess, regardless of the outcome of the November elections, it should send an equally strong message.

Chinese spokesmen are characterizing the House action as an attempt to keep China from rising in power, wealth and prestige. The Senate should join the House in seeing that by its trade policies, China is attempting to bring the United States down.