July 17, 2006

Governor tells federal commission that Washington must act

LANSING - Governor Jennifer M. Granholm today welcomed the U.S.-China Economic Security Review Commission to Michigan where the agency is holding a hearing on the impact of Chinese manufacturing on domestic auto and auto parts industries. The Governor, who has been a consistent advocate for federal action to protect Michigan manufacturers from unfair trade practices, asked commission members in her welcome letter to join her call for federal action.

"China's rapid build-up in automotive production - facilitated by unfair trading practices - has had a serious impact on Michigan businesses," Granholm wrote. "Michigan workers and manufacturers can compete with anyone on the globe, but we need a level playing field. Instead, we are being asked to compete with one arm tied behind our backs, and the impacts are far-reaching."

The U.S.-China Economic Security Review Commission is an independent agency created by Congress in 2000 that reviews bilateral economic, trade, and security issues with the People's Republic of China. In addition to making an annual report to Congress about the impact of trade, the commission can make recommendations for legislative and administrative action.

Granholm highlighted four trading practices used by the Chinese to gain an economic advantage. The Governor indicated that currency manipulation, failure to protect intellectual property rights, barriers to U.S. auto parts, and failure to provide basic worker protection have contributed to the uneven playing field that has cost the United States more than one million jobs and has increased our trade deficit with China by 250 percent in just five years.

"As governor, I am doing all I can to transition Michigan's economy by investing in industries that will diversify our economy and investing in education and training for our workforce," Granholm wrote. "We have the most comprehensive, aggressive economic plan in the nation, but no governor has the power to negotiate or enforce trade agreements. I will continue to call upon the Bush Administration to do more to fight China's unfair trade practices until the administration acts to protect Michigan workers and Michigan jobs."

United States Senator Debbie Stabenow and Congressmen John Dingell, Sander Levin and Thaddeus McCotter were among those expected to testify at today's hearing.

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