May 10, 2006

LANSING – Governor Jennifer M. Granholm issued the following statement regarding the U.S. Treasury Report on International Economic and Exchange Rate Policies released today:
 
“Last month, I and other concerned Democratic governors called on U.S. Treasury Secretary John Snow to take immediate action to address currency manipulation by several nations, particularly China, that continue to harm manufacturers and workers.  The Treasury report released today found no United States trading partner responsible for currency manipulation, demonstrating the extent to which the Administration will ignore China’s unfair trading practices.  It is widely accepted that China is manipulating its currency and giving China’s goods and services a built-in unfair competitive advantage over American goods and services in the United States, China, and around the world. 
 
“China’s currency undervaluation has a negative impact on our national economy and the economy of states like Michigan.  These practices have pushed the U.S. bilateral trade deficit with China past $200 billion – a new record.  Even in the face of these stark figures, the Administration continues to deny that China’s manipulative actions deserve more than a gentle nudge.  This Administration must stand up for American businesses and hold China and other currency manipulators accountable for this type of unfair conduct.”

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