USCBC Urges Continued US-China Engagement
on Exchange Rate Reform

WASHINGTON, DC October 26, 2005 — The US-China Business Council (USCBC) welcomes the release today of the Treasury Department's latest report on international exchange rate policies, which includes a discussion of the exchange rate policy of the People's Republic of China.

USCBC supports the Treasury Department's effort, of which this report is but one part, to engage broadly with the PRC government on exchange rate and financial sector reforms in China.

"The US-China Business Council believes that China should continue to allow market forces a greater role in determining the value of the renminbi," said USCBC President John Frisbie. "A delegation of our board of directors made this point during meetings with senior PRC government leaders in Beijing in October. The Chinese officials we met with acknowledged that exchange rate reform is in China's interest."

Some members of Congress have introduced legislation to penalize China for not revaluing its exchange rate.

"Continued engagement with the PRC government on this issue is important," Frisbie continued. "Legislation penalizing China by imposing tariffs on Chinese goods purchased by American consumers is counterproductive."

The US-China Business Council is the leading organization of US companies engaged in business with the People's Republic of China. Founded in 1973, the USCBC provides extensive China-focused information, advisory, and advocacy services, along with comprehensive events, to nearly 250 US corporations operating within the United States and throughout Asia.

Last Updated: 28-Nov-05

USCBC Urges Continued US-China Engagementon Exchange Rate Reform

USCBC Urges Continued US-China Engagement
on Exchange Rate Reform