Bill seeks to make China trade fair to U.S.

A bill co-sponsored by Sen. Charles Schumer expected to be brought to the Senate floor Monday would assist struggling American manufacturers who he says have lost business to Chinese competitors offering cheaper products.

Schumer (D-N.Y.) said Sunday he hopes to curb what he described as China's manipulation of its currency to make Chinese exports to the United States cheaper and U.S. products in China more expensive. The legislation would penalize China for keeping its currency, the yuan, artificially low.

"For too long, Chinese manufacturers have eaten our lunch using unfair trade practices both here in New York and across the country," he said at a news conference Sunday at his Manhattan offices. "They've rigged the game unfairly."

His proposal, which makes no specific mention of China, requires that the Treasury Department determine that a country's currency is "misaligned" -- rather than the existing, stricter standard of being "willfully manipulated" -- and give its government 90 days to make corrections before imposing countervailing duties.

Schumer Sunday cited an Economic Policy Institute study that found 111,000 jobs in the New York metropolitan area, including 23,000 on Long Island, were lost in the past decade due to increased trade with China and the manipulation of Chinese currency.

Beijing has denied the exchange rate causes the trade imbalance, saying Washington should lift a ban on high-technology goods to help itself.

In a Sept. 21 letter to Senate leaders, dozens of American trade groups, including the U.S. Chamber of Commerce and the U.S.-China Business Council, opposed Schumer's proposal, which does not yet have the White House's endorsement. They said it is likely to "result in retaliation against U.S. exports into China."

Schumer was joined Sunday by the vice president of a Long Island company that has seen business dry up in light of Chinese competition.

"We've been a manufacturer of emergency exit signs and life-safety products for 25 years," said Daniel Lax, of Westbury-based Autronic Plastics. Lax said the company has invested in robotics and other technology but cannot compete with China when it comes to manual labor.

With AP