A Senator Steps Up

When research a news bit I heard about Ford laying off 22,000 more US based hourly employees, I came across an article in the Detroit News that I caught my eye. It lead me to a press release by Senator Stabenow (D-Mich). Here's the text from the release-

WASHINGTON -- A federal commission advising Congress on economic policies with China will hear a U.S. senator Monday who will argue the United States can no longer "ignore the fact that China is cheating" in committing unfair trade practices.

The six-year-old U.S.-China Economic and Security Review Commission will meet at the University of Michigan-Dearborn and will hear testimony from United Auto Workers President Ron Gettelfinger, U.S. Sen. Debbie Stabenow and U.S. Reps. John Dingell, D-Dearborn; Sander Levin, D-Southfield; and Thad McCotter, R-Livonia. Also testifying will be Leo Gerard, president of the United Steelworkers union.

The hearing, "China's Impact on the U.S. Auto and Auto Parts Industries," comes as Ford Motor Co., General Motors Corp. and Delphi Corp. are in the midst of cutting 80,000 jobs.

Automakers are encouraging parts suppliers to consider outsourcing to countries like China that have far lower labor costs, though they also criticize China for artificially keeping the value of its currency low.

"American companies are held hostage by China's requirements and then, receive no recourse when trade laws are violated," Stabenow will testify, according to an advance text of her remarks obtained by The News. "It means jobs are at risk, not because of competition, but because China is cheating the system. China is stealing patents, producing counterfeit products, and manipulating currency markets. These actions are illegal, period."

Stabenow casts the fight as a struggle to defend good-paying jobs. It's the latest in a series of events, largely by Democrats who argue the Bush administration isn't doing enough to insist on fair trade with China. Michigan Republicans in Congress have pushed the administration to take a tougher line with China.

"As a country and as the state of Michigan, we all should be fighting for these jobs. This is our middle class and this fight is about maintaining our way of life," according to Stabenow's text. Last year, the U.S. trade deficit with China hit an all-time high of $202 billion, 25 percent higher than 2004.

The Michigan Manufacturing Technology Council has estimated that the competitive advantage a $10 million manufacturing plant in China has over a comparable plant in the United States would largely be erased by a 30 percent currency revaluation by the Chinese.

The Bush administration has taken some action.

On March 30 the administration and the European Union filed a complaint with the World Trade Organization over China's "unfair" treatment of U.S. auto parts.

China's taxes on imported auto parts discourage automobile manufacturers in China from using imported auto parts in the assembly of vehicles, the United States said. China has regulations that impose a tax on imported auto parts equal to the tariff on complete automobiles.The Big Three CEOs have made what they call currency manipulation by China and Japan a top issue, saying it is an unfair trade practice.

The countries devalue their currencies, making U.S. products more expensive there and Chinese exports cheaper, they argue.

Its time that more of our elected officals step up and face what's really happening and quit pandering to big business. Write your congressman today!