Congress is attempting to reign in the Chinese for manipulating its currency to make its exports to the U.S. cheaper and U.S. exports more expensive. Many legislators are hesitant to take on the Chinese this way, saying quiet diplomacy is a better way to influence policy.
Second District Congressman Joe Donnelly spoke on the house floor yesterday about the proposed legislation.
“I just gave a floor speech about going after the Chinese and their currency manipulation which has cost our country millions of manufacturing jobs,” said Donnelly. “We think in Indiana alone, over 62,000 jobs were lost because of this.”
Economists say the Chinese currency is undervalued against the dollar by as much as 40%. Donnelly and others contend the Chinese policy has cost the U.S. two million jobs, and the trade deficit with China hit $273 billion last year.
On another topic, Donnelly spoke forcefully about the apparent Iranian plot to kill Saudi and Israeli diplomats on U.S. soil.
“It’s basically an act of war on our own soil. What the Iranians have done violates every norm and their country is an outlaw country. I expect that in terms of a response, there are no cards that are off the table.”