Connecticut Attorney General's Office
Press Release
Attorney General Urges Action Against China For Currency Manipulation That Has Cost 27,300 CT Jobs
April 7, 2010
Attorney General Richard Blumenthal today, joined by a bipartisan group of attorneys general from across the country, called on Treasury Secretary Timothy Geithner to take action against China for manipulating its currency -- so far costing at least 27,300 manufacturing jobs in Connecticut and millions nationwide.
Blumenthal and attorneys general from Michigan and Ohio -- some of the states hardest hit by China’s practices -- have invited additional attorneys general to join a letter to Geithner before the end of business today.
At Blumenthal’s side as he announced his multi-state petition were owners and managers of several manufacturing companies in Connecticut that have been directly harmed by China’s currency practices.
“By stifling its currency, China is stifling our economy and stealing our jobs,” Blumenthal said. “Connecticut manufacturers have bled business and jobs over recent years because of China’s unconscionable currency manipulation and unfair market practices. In addition to a poor record of employee rights and below-market wages, China has maintained an unfair advantage over U.S. industries by artificially suppressing the value of the yuan by as much as 40 percent.
“I have enlisted attorneys general to urge action, declaring China a currency manipulator and imposing trade sanctions if necessary. Now is the time to stand strong for rights of American businesses to fair, even-handed competition -- a global level playing field.
“Year after year, China has manipulated its currency, keeping the yuan low to boost exports higher. In its exploitive trade policy, it has refused to allow the yuan to float as do currencies of virtually all the other industrialized nations. By systematically undervaluing the yuan, China has an unfair economic advantage over United States companies, especially manufacturers, because their costs remain artificially low while prices of United States exports to China remain artificially high.
“American companies should be spared this unfair, artificial government-created advantage. As Connecticut manufacturers have told me, these companies shrink in size or even close their doors as a result of China’s practices.
“As many as 2 million American jobs -- mainly high-paying manufacturing jobs -- have been lost because of Chinese currency manipulation. Another 1.4 million may be lost in the next couple of years, according to economic experts. Meanwhile, American trade balance deficit grows larger and larger -- led by China’s 4 to 1 American export to import advantage.”