USW calls for more action against undervalued Chinese currency

International president of the United Steelworkers (USW) union Leo W. Gerard said that the US Treasury report issued on July 8 designating the Chinese currency as undervalued is a small step in the right direction.
 
The undervalued yuan or renminbi, which artificially depresses the cost of Chinese products and falsely increases the price of American goods, results in lopsided trade, has closed American factories and cost American jobs, USW said in a press release on July 9.
 
"The administration is correct in calling the renminbi undervalued," said President Gerard, adding, "The next crucial step is to do something about it."
 
The USW supports legislation that would punish China for currency manipulation sponsored in the Senate by Senator Chuck Schumer and others and in the House by US Representative Tim Ryan and others.
 
As SteelOrbis previously reported, China announced on June 19 that it would establish a more flexible exchange rate policy. Since then, the renminbi has appreciated by less than 1 percent against the US dollar.
 
"When you consider that it is undervalued by as much as 40 percent, that one percent is meaningless," Gerard said.