TO: / Asia Task Force, China AmChams
RE: / I)ITC Initiates China Investigations
II)Bunning and Stabenow Introduce Senate Companion to Ryan-Hunter
III)House Ways and Means Subcommittee Hearing on CVD Bill
IV)Senate Finance Committee Hearings Scheduled for Late-March
I) ITC InitiatesChina Investigations
The International Trade Commission (ITC) held a hearing March 8 to launch three separate China-related investigations requested by outgoing Ways and Means Chairman Bill Thomas (D-CA) in October 2006.
In the first report, the ITC will analyze the principal trends and patterns in trade and foreign direct investment between Asia-Pacific countries and the United States and their implication for the U.S.-China trade relationship. This report will be provided to the Ways and Means Committee by October 2, 2007.
In its second report, the ITC will investigate the driving factors behind the rapid growth in U.S.-China trade. The ITC will initiate its investigation relating to this report in April 2007 and provide the full report to the Committee by April 2, 2008.
For the third report, the ITC will provide an in-depth examination of China’s integration with the global economy through processing trade and FDI, and its implications for U.S.-China trade and investment. The ITC will initiate the investigation relating to this report in April 2007 and provide its report to the Committee by October 2, 2008.
The hearing included witnesses from the steel industry, the consumer electronics industry, business associations, and academia. Several of the witnesses highlighted the negative impact of China’s subsidies policies on both theU.S. and worldwide steel industries. They also emphasized the regional implications of China’s undervalued currency and itsdetrimental impact onU.S. manufacturing.
II) Bunning and Stabenow Introduce Senate Companion to Ryan-Hunter
Senate Finance Committee members Jim Bunning (R-KY) and Debbie Stabenow (D-MI) introduced legislation March 7, which acts as a Senate companion to the “Fair Currency Act of 2007,” or H.R. 782, introduced by Representatives Tim Ryan (D-OH) and Duncan Hunter (R-CA). Both bills would allow U.S. companies to apply countervailing duties in situations in which trading partners are found to have “misaligned” currencies.
Senators Evan Bayh (D-IN), Olympia Snowe (R-ME), Carl Levin (D-MI), and Robert Casey (D-PA) are co-sponsors of the legislation in the Senate. H.R. 782 has nearly 60 co-sponsors in the House, and has received verbal support from House Ways and Means Trade Subcommittee Chairman Sander Levin (D-MI), who has indicated that it will be brought to the floor for a vote in coming months.
III) House Ways and Means Subcommittee Hearing on CVD Bill
House Ways and Means Trade Subcommittee Chairman Sander Levin (D-MI) has announced a hearing for March 15 on the application of countervailing duties on injurious imports from nonmarket economy countries. The hearing will focus on legislation (H.R. 1229) introduced by committee members Reps. Artur Davis (D-AL) and Phil English (R-PA) that would subject non-market economies to countervailing duties.
The Subcommittee is soliciting testimony from non-retail companies interested in discussing their concerns with the legislation surrounding the issue of potential double-counting and the need to ensure that antidumping and countervailing duties are not applied to the same products.
Any companies interested in testifying should contact Will Leahy, Manager, China Policy at 202-463-5326, or .
The official hearing announcement can be found on the Ways and Means web site.
IV) Senate Finance Committee Hearings Scheduled for Late-March
The Senate Finance Committee has scheduled two hearings on China-related issues, Tuesday March 27th, and Wednesday March 28th. As part of the deal brokered last fall on S.295, the Senate Finance Committee staff worked closely with the staffs of Senators Schumer and Graham to select witnesses.
The hearing on the 27th will be a broad examination of the bilateral commercial and economic relationship and will have the following witnesses:
- Former Ambassador Stapelton Roy;
- Norman Sorenson, President, Principal Financial;
- A witness from the agricultural industry;
- A representative from Nucor;
- Steven Shube, LawrenceLivermore Laboratories
The hearing on the 28th will focus on China’s currency with testimony from the following:
- Morris Goldstein, IIE;
- Eswar Prasad, CornellUniversity;
- Stephen Roach, Morgan Stanley;
- John Makin, AEI
We will keep members apprised of relevant developments as is warranted.
For questions or for more information, please contact Will Leahy, Manager, China Policy, at ; 202-463-5326.
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