The latest from the Democrats in Congress on U.S.-China relations. I agree with some of the statements, but the fact that these guys are sending a “letter” to Bush means that this is just a cheap stunt. Nothing new here, I suppose.

On March 27, Ways and Means Committee Chairman Charles B. Rangel (D-N.Y.) and Trade Subcommittee Chairman Sander M. Levin (D-Mich.) joined fellow Committee members in a letter urging President Bush to adopt and implement a new strategy for dealing with China’s persistent currency manipulation and other trade issues.

In their letter, the members noted the adverse impact currency manipulation is having on the U.S.-China trade relationship, specifically on the U.S. trade deficit, retention of American jobs, and U.S. economic growth. To address these problems, the members urged the Administration to “use all available tools at its disposal to address China’s protracted, large-scale intervention in the foreign exchange markets to maintain an undervalued currency.”

The letter also noted the impact of China’s currency manipulation on the world economy. The growth in China’s global trade surplus and its large foreign exchange reserves demonstrate the depth of the problem and add further urgency to a new trade policy vis-à-vis China, the members maintained. The attached text called on the Bush Administration to break from the approach of “quiet diplomacy” and implement a new strategy to engage China in the international community.

The new strategy incorporates the following components:

1. Strengthen U.S. leadership in the International Monetary Fund (IMF)
2. Take action in the World Trade Organization (WTO)
3. Initiate special negotiations with key countries
4. Enforce existing U.S. trade and exchange rate laws

I guess these guys do not have enough support in Congress to do anything themselves, so they are using the letter to Bush as a way to show they are “tough on China”. Whatever . . .