China's Exchange Rate Policy and Trade Imbalances

The matter before the Subcommittee is an urgent one. We are holding this hearing in the hope that our witnesses can shed light on the effect that China's exchange rate policy has on trade flow and U.S. manufacturers and our workers and on what remedies Congress should consider. Financial and trade analysts and news reports indicate we should anticipate China to begin gradually revaluating its currency, the RMB, in the coming weeks. What we hope to learn is what a meaningful appreciation of the RMB would be and what effects it will have on the U.S.-China trade relationship and on U.S. employment. We will consider remedies to address this imbalance that exists today and that we can expect to remain for some time in the future.