WASHINGTON— U.S. Senator Debbie Stabenow (D-MI) and a bipartisan majority of the U.S. Senate have joined together to approve an amendment to the State Department authorization bill that gives the president strong new powers to combat China’s currency manipulation.

“I have been a long-time co-sponsor of this legislation, and the Senate’s vote today sends a clear message to China that it must stop its currency manipulation,” Stabenow said. “It has become increasingly clear that China isn’t playing by the rules.”

In the past two years Stabenow, a member of the Senate Banking Committee, has helped to lead the fight in urging the administration to take a strong stand on Chinese currency manipulation. The Chinese currency is believed to be artificially valued at somewhere between 15 and 40 percent below its market value, making the value of its exports artificially low and giving China a significant trade advantage. At the same time this currency manipulation makes the price of American goods artificially high in the Chinese market, discouraging the sale of U.S. goods in China.

For Michigan businesses this means that Michigan products are unfairly overpriced in China, making them more difficult to sell, and Chinese products are undervalued in the U.S., making them unfairly less expensive than American products.

“To a Michigan business owner or consumer, this means China’s currency manipulation is hurting Michigan’s manufacturers and costing Michigan jobs. We need to take a strong stand and tell China that they must abide by their trade agreements,” Stabenow said.

The legislative language approved by the Senate calls for the administration to begin talks on the currency issue within 180 days after final passage of the legislation. If talks are stalled after six months, a 27.5 percent tariff – a midpoint between the estimated 15 to 40 percent undervaluation figures – would be imposed on all Chinese exports to the U.S.

The president would have the power to delay imposing the tariff if he believes talks are making headway and to remove the tariffs after certifying to Congress that China has revalued its currency upward to “at or near its fair market value.”

Stabenow noted that Michigan has been hit hard by a variety of unfair Chinese trade practices, which have caused Michigan to lose an estimated 51,000 manufacturing jobs between 1989 and 2003. These job losses have occurred in the production of a wide range of goods and products, from apple juice and auto parts to iron ore and furniture.